The latest IAB Canada Online Ad Revenue Survey is out and it states that Online Advertising revenues rose 16% to $2.593 billion in 2011, compared to $2.232 billion in 2010. The Survey also estimates Online Ad Revenue will increase to $2.8 billion by the end of 2012. Online Advertising revenue continues to consistently narrow television’s lead, while pulling further ahead of newspapers, which experienced a revenue decline of 6% last year.
Internet Advertising Revenues Grew by 19.4% in 2010 to 21.7% in 2011
More specifically, large gains were achieved by both Search and Display Advertising, with Search rising 19% to just under $1.1billion, and Display growing by 22% to $840 million. Classifieds/Directories appear to have lost ground slightly in 2011, down 2% from 2010. Together, these three advertising formats generated 96% of all Online advertising booked in Canada during 2011. Just as impressive was the expected rapid increase seen in Video advertising, growing by an incredible 96% to $73 million in 2011.
Chris Williams, President of IAB Canada, commented on the Survey Results, saying “In 2011, again we see the market overachieve against our forecast even if the margin is slight. However, there are fundamental shifts taking place within that spend that require further attention. Online video spend has nearly doubled and yet remains modest when compared television ad spend. Increasing sophistication in the use of data for programmatic audience buying is changing the dynamics of how inventory is priced and sold. Just combining those two trends indicates how potentially broad the impact of the changing online media landscape could be in 2012 and beyond.”