Russia, Indonesia and South Korea on the rise
Currently the world’s ninth-largest advertising market with projected ad spend of US$11.6 billion in 2013, Canada is expected to tumble into 11th place by 2016 according to the latest ad spend forecast from ZenithOptimedia.
Canada and France (currently the world’s eighth-largest ad market with a 2013 ad spend of US$12.1 billion) will be pushed out of the top 10 by Russia and Indonesia, while South Korea will rise from 10th to eighth says the ZenithOptimedia report.
GroupM’s “This Year, Next Report,” meanwhile, pegs the value of the Canadian ad market in 2013 at $13.6 billion, calling for modest growth of 1.9% to $13.9 billion in 2014.
The GroupM report notes that there is “vast” e-commerce potential for the market, with a significant gap between the percentage of the population that is online (84%) versus the number of businesses offering an e-commerce solution (17%).
The report also notes that faster internet speeds, bigger data limits and an explosion of devices is also creating “big opportunities” for online publishers and brands, with new ad formats – particularly in mobile – opening up for advertisers.
TV attracted an industry leading $3.7 billion in advertising this year, and is forecast to grow 3% to $3.85 billion in 2014, but technological advances are reshaping the industry. The report notes that 42% of Canadian households now own a PVR, while a quarter now subscribe to Netflix and 18% regularly watch cable on-demand.
Digital will lead all media with 5% growth to $3.2 billion in 2014 says GroupM, representing about 23.2% of total media investment.
Retail accounted for an industry-leading 8% of all Canadian ad spending last year, followed by automotive (6%), food (5%) and entertainment (5%). Together those four categories accounted for $3.4 billion in advertising investment last year.
