November 02, 2004
Canadian Interactive Marketplace Grows 68% in Two Years!

Toronto Ontario, November 2nd, 2004 - Online advertising revenues for 2004 are expected to reach the $300 Million mark, according to a recent study by the Interactive Advertising Bureau of Canada, a 68 percent increase in just two years.

The projections were reached after a comprehensive survey of all major online publishers in Canada. The top 40 companies selling advertising in Canada were surveyed and the study benefited from a 41% response rate from participating companies. Revenue data was compiled by Ernst and Young and in concert with Faulkner Consulting, the definitive numbers were produced for 2002 and 2003, along with an estimate of online ad revenues expected for 2004.

For the first time in Canada, the total market number was produced using revenues garnered from within the entire realm of advertising segments, including Display (Sponsorship and on-page Awareness campaigns), Search, Classified and Email advertising. Individual numbers for each of these segments were also determined for 2003 programs.

Projections are for a year-end total of $295 Million, a 24.5 percent increase from 2003 totals ($237 Million) and up 67.6 percent from the 2002 tally of $176 Million.

Commenting on the numbers, Brent Lowe-Bernie, IAB Canada Chairman said: "We're ecstatic to be able to confirm what many of us in the business have been feeling this year, and that the U.S. has been experiencing for seven quarters in a row now. Canadian advertisers are obviously in sync, and recognizing that the interactive channel is a critical component of the media mix. With almost 300 million in revenues expected before the end of the year, IAB Canada will continue to do everything it can to help advertisers, agencies and publishers master the medium, with an eye toward making the revenue increase for 2005 even larger."

Paula Gignac, Executive Director adds: "Revenue numbers have grown as marketers have become more familiar with the medium, but also as research (including the IAB's Canadian Media Optimization Studies (CMOST)), has shown the benefits of re-distributing ad dollars within campaigns to include online. Recent CMOST studies conducted by the IAB Canada for Molson, GM and RBC Insurance have demonstrated that online advertising is capable of generating significant improvements in brand metrics, identifying and influencing key decision makers at important points in product purchase cycles, and significantly lifting product awareness even after other media has reached a plateau."

"Consumer media habits are changing rapidly, with more and more time spent online by virtually all demographics," says Gignac. "Add to that, Canada's higher than the U.S. per capita penetration of broadband connections, propensity to search, and the proven cost-effectiveness of online advertising campaigns -- and you have a golden triangle of opportunities for Internet-savvy marketers."

Jose Leal, IAB Canada Vice Chairman and Vice President of Canoe, one of the participating publishers adds: "with the growth and performance that we are experiencing this year, the broader scope of the survey for the first time truly reflects the health and strength of the online industry."

For more information contact:

President, IAB Canada
iabcanada.com

The Interactive Advertising Bureau of Canada is the national voice of the Canadian interactive marketing and advertising industry, and is a not-for-profit association representing a membership composed of publishers, agencies, advertisers and interactive service associates.

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