Advertising revenues grew 2.1% in 2011: StatsCan

Revenues for the Canadian advertising industry grew 2.1% to $6.91 billion in 2011 according to new data published Monday by Statistics Canada. Six provinces registered revenue increases, led by Alberta at 11.2%. New Brunswick ranked last among all provinces and territories with a 16.5% decrease in revenues. Ontario, Quebec and British Columbia accounted for a […]

Revenues for the Canadian advertising industry grew 2.1% to $6.91 billion in 2011 according to new data published Monday by Statistics Canada.

Six provinces registered revenue increases, led by Alberta at 11.2%. New Brunswick ranked last among all provinces and territories with a 16.5% decrease in revenues.

Ontario, Quebec and British Columbia accounted for a whopping 89.7% of total revenues for the industry – down half a percentage point from 90.2% in 2010 – led by Ontario with revenues of $4 billion (59.7% of all revenues).

Quebec generated revenues of $1.62 billion (23.4%) followed by British Columbia at $581.7 million (8.4%).

Advertising agencies account for 40.1% of the industry’s operating revenues, while display advertisers and direct mail/advertising material distribution services shared second place at 12.6%. Specialty advertising distributors accounted for 10.5% of all revenues, followed by all other services related to advertising (10.4%) and public relations services (7.8%). Media buying agencies and media representatives accounted for the smallest portion of total revenues at 6.1%.

The industry’s operating expenses also rose 2% to $6.2 billion. Salaries, wages and benefits, which represent 40.4% of all operating expenses, increased 3.8% to $2.4 billion.

The industry’s operating profit margin remained stable at 10.7%, with Saskatchewan enjoying the highest profit margin (19.1%) and New Brunswick ranking last with a profit margin of 6.4%.

Among advertising disciplines, direct mail and advertising material distribution services posted an industry-leading 4.2% increase in revenue growth, followed by specialty advertising distributors (3.2%) and all other services related to advertising (3%).

Display advertising, which StatsCan defines as an industry comprised of establishments “primarily engaged in creating public display advertising material, such as printed, painted, or electronic displays, and placing such displays on indoor or outdoor billboards and panels, on or within transit vehicles or facilities, in shopping mall displays, and on other display structures or sites,” was the only industry sector to lose ground in 2011, with revenues falling 1.7%.

StatsCan said that the decline was not unexpected, however, since the Vancouver Olympics had produced a “sizable” increase in 2010.

A complete overview of the data can be found here.

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