Online Ad Spending in Canada Plays Catch Up
Superior currency strength is not Canada’s only boasting point when it comes to comparing themselves with the U.S.; the Internet penetration in its households is also above and beyond the penetration in the U.S. However, advertisers in Canada have been slow to respond to the country’s obvious appetite for the Web, according to a recent eMarketer report.
There are 65.0 million households in the U.S. that have broadband connections in 2007, compared to just 8.1 million such households in Canada. However, in terms of the percentage of total households, the U.S. has a penetration of 53.6%, while Canada’s is 62.6%. These figures are expected to grow to 69.3% and 76.7% by 2011, respectively.
“The online population is engaged, tech-savvy and independent-minded. Canada is home to a cutting-edge computer games industry, assisted by substantial tax breaks. The size of the country and its pioneer heritage encourage efficiency and progressive thinking. Yet Canadian companies have generally been slow to advertise online,” said Karin von Abrams, a senior analyst at eMarketer.
Figures released by Ipsos Reid show that Canadian adults between the ages of 18 and 54 spend 13.3 hours online per week, while adults aged 55 and over spend 8.7 hours online per week.
Online advertising spending was C$1.01 billion (or $894 million) in 2006, and is expected to be C$1.39 billion in 2007. This number could reach C$3.31 billion by 2011.
Canada’s relatively small population is causing entrepreneurs in the country to be a bit cautious with their jump into online advertising, but eMarketer expects this to change in the near future.
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