Canadian online ad spend to grow 7% in 2013: GroupM

After an increase of 16.2% in 2012, internet advertising is on pace to rise another 14.6% this year to $113.5 billion worldwide, though only by 7% in Canada, according to new research from GroupM. In 2012, Canadian advertisers spent about $2.84 billion on online advertising and are projected to spend $3.05 billion this year. While […]

After an increase of 16.2% in 2012, internet advertising is on pace to rise another 14.6% this year to $113.5 billion worldwide, though only by 7% in Canada, according to new research from GroupM.

In 2012, Canadian advertisers spent about $2.84 billion on online advertising and are projected to spend $3.05 billion this year. While still growing, the rate at which online spend is increasing is slowing. In 2012 online ad spend grew 9% from 2011, the year before that (2010 to 2011) it was up 16% and 22% the year before that.

Derived from data drawn from across the WPP network in 28 countries, the report, “This Year, Next Year: Interaction 2013,” also details spending in paid search and internet display, as well as data on broadband penetration, media time spent online and e-commerce. And while online ad spending is slowing in Canada, spending on e-commerce remains strong. GroupM predicts total spend to jump 14% this year, holding steady from a year ago and up from 12% in 2011.

If WPP’s forecast is accurate, digital advertising would constitute 21% of all measured ad spend globally in 2013, with North America leading the way at $42.8 billion followed by Asia-Pacific at $36.8 billion and Western Europe at $26.6 billion.

The study also predicts Canadians will average 1.76 hours online per day in 2013, up from 1.68 hours in 2012 and 1.61 in 2011. But if we are spending more time online, it isn’t cutting into our time with the TV. On average we’ll watch 4.29 hours of television per day in 2013, up from 4.17 hours in 2012. In fact, it’s the most TV we’ll have watched in the last seven years, according to GroupM.

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