eMarketer: Canadian Online Ad Revenue Climbs

Display ads lead the charge.

MAY 2, 2007 – Canadian online advertising revenues reached C$1.01 billion in 2006, according to the Internet Advertising Bureau of Canada’s (IAB’s) “2006-07 Canadian Internet Advertising Revenue Report.”

That is up 80% over 2005.

What made revenues jump so high?

The IAB said that integrated campaigns, new search ad choices, rich media and video pre-rolls all contributed to the rise. Several new blue-chip advertisers also entered the market for the first time in 2006.

eMarketer senior analyst David Hallerman noted that the breakdown of revenue by segment tells another story.

“Online display ad spending in Canada outpaces search advertising,” said Mr. Hallerman. “In the US, about two dollars go to paid search for every dollar spent on display ads.”

“That discrepancy is likely due to the substantially greater broadband penetration in Canada, at 58% of households according to eMarketer estimates, versus only 46% in the US, making the Canadian market even more valuable to brand advertisers buying display ads,” Mr. Hallerman said.

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