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Survey: Canadian Internet advertising up 54% in 2005

According to the Toronto-based Interactive Advertising Bureau of Canada, Internet advertising revenues reached a new high of $562 million in 2005. This represents a 54% increase from the $364 million spent on Internet advertising in 2004. According to the bureau, banner ads accounted for 41% of the revenues, which search-based ads accounted for 35% of the total. Online classified and directory ads represented 22% of revenues, while email ads formed two percent. The French Canadian market accounted for $124 million of the 2005 total. “There are two things that are important to note in the findings,” said bureau president Paula Gignac. “First, is how the survey is in sync with trends shown in the U.S. and other markets, with display advertising holding its own while search revenue grows at a faster pace. Second, is how the share of dollars allocated to Internet advertising is quickly moving towards the 10 to 15 percent that cross-media optimization studies have long recommended as necessary to properly utilize the Internet channel.” The bureau estimates the 2006 revenues for online advertising in Canada at $801 million, a 43% increase from 2005 and approximately 6.4 percent of the estimated $12.5 billion total ad spend in Canada for this year.

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