For the first time, advertising revenue on the internet has surpassed advertising revenue on television in Canada, according to the latest Global and Entertainment Media Outlook report.
The annual report from PricewaterhouseCoopers (PwC) says that in 2013, internet advertising brought in $3.8 billion, topping the television industry’s $3.6 billion. And predictions suggest that trend is going to continue.
Video ad spending grew by 47.7% in 2013, while paid searches contributed $1.5 billion to the total.
Even though its 16% growth rate was the lowest seen in post-recession years, internet advertising revenue grew more than in any other segment of the Canadian media industry. By 2018, the report predicts that Canada’s internet advertising revenue will be $7.2 billion, approaching double the projected $4.1 billion for television.
Canada is one of the few countries where internet exceeds television ad revenue. By comparison, internet advertising is worth two-thirds of television advertising in the U.S., according to PwC. Globally, the report predicts television will still be ahead through 2018, even though the average annual growth rate for internet advertising will be almost double that of television.
This may be because Canada’s projected 13.9% average growth rate for internet advertising over the next five years outpaces the global rate of 10.7%, while our country’s rate of 2.4% for television is less than half the global rate of 5.5%.
The report attributes the internet ad growth to Canadians being some of the most active internet users in the world, the continuing strength of paid search advertising and huge increases in video and mobile advertising. Video ad spending grew by 47.7% in 2013, while paid searches contributed $1.5 billion to the total.
The second biggest area of advertising growth in Canada last year was in the video game industry, growing by 13.4%. By 2018, revenue from video game advertising is predicted to nearly double from $89 million to $164 million.
Handout image with the report, which can be found here
From Media in Canada