eMarketer: Users Tune in to Online Video in Canada, Ad Spending Follows

Online video ad spending to double as usage surges in Canada

MAY 7, 2012 – Online video’s popularity among internet users in Canada is taking off, and marketers are investing heavily in the format. eMarketer estimates that online video ad spending in Canada more than doubled from CA$37 million in 2010 ($37.4 million) to CA$84.6 million ($85.5 million) in 2011, and is forecast to increase 67.2% in 2012 to CA$141.5 million ($142.9 million).

There is good reason to be bullish. According to the March 2012 “Canada Video Study” from Google and Ipsos MediaCT, almost two-fifths of internet users indicated that they spent as much or more time watching online video than they did watching TV.

On average, respondents watched 7.7 online videos per week, while 30% watched eight or more and 11% watched 20 or more videos per week.

Number of Online Videos that Online Video Viewers in Canada Watch per Week, Feb 2012 (% of respondents)

And users aren’t just watching. The report evaluated users’ actions both online and offline after viewing an online video-18% used a search engine to find more information, 15% talked to others about the video, another 15% visited a social networking site and 13% forwarded the video to others.

Online and Offline Actions Taken After Viewing Online Video According to Online Video Viewers in Canada , Feb 2012 (% of respondents)

Perhaps most important, at least to retail advertisers: 7% of viewers made a purchase online and 5% made a purchase in-store following watching a video.

The study, commissioned by Google to promote online video, is based on a January�February 2012 Ipsos MediaCT survey of internet users in Canada between the ages of 18�64, weighted to represent the population by age, gender and language. While the report may be slightly biased to paint online video in a flattering light, those purchase rates are hard for marketers to ignore. As marketers realize online video’s potential effect on the consumer, eMarketer expects online video ad spending in Canada to reach CA$369.7 million ($373.4 million) in 2016, more than double total spending in 2012.

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