Online Advertising in Canada Grows, Slows

Online revenues continue to grow for publishers in Canada. However, signs point to a possible slowdown for 2005 spending.

According to the Interactive Advertising Bureau of Canada, publishers of Canadian sites will generate $519 million in ad sales, a 43 percent increase over last year. The projection marks a significant jump over the $364 million they earned in 2004, though the rate of growth is down from last year’s 54 percent lift.

In 2004, display advertising grabbed a 45 percent share of total revenues. Search advertising amounted to 30 percent of the ad spend on Canadian sites.

“There’s still plenty of room for growth in 2005 and beyond,” Paula Gignac, executive director of the IAB Canada, said in a company statement.

Online spending in 2004 accounted for four percent of total advertising dollars in the country.

Additionally, the French Canadian segment accounted for 18 percent of online ad dollars in 2004, bringing in approximately $65.5 million.

The Advertising Revenue Report published by the Canadian chapter of the IAB is compiled annually. The IAB received a 43 percent response rate on its survey of the top 100 sites selling advertising in Canada. Revenue data was compiled by Ernst and Young in conjunction with analysis by Faulkner Consulting.