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2007 Canadian online ad revenue jumped by 38 per cent, but newspapers lagged behind

Canadian advertisers are moving more and more money onto the web, with spending continuing to grow by double digits, although the rate of growth is expected to slow this year. Alas, newspapers, while seeing healhy growth in their online revenue, are lagging behind.

From a press release earlier this week from the Interactive Advertising Bureau of Canada (IAB):

2007 Canadian Online Advertising Revenues climbed to just over
$1.2 billion for the year — a 38% increase over 2006 actuals. Publisher revenue from Online advertising in Canada has more than
quadrupled over the past five years — building from $237 million in
2003, to the $1.2 billion mark in 2007 — and is quickly closing in on
more established mediums

The IAB data shows that online video ads are still virtually non-existent, accounting for $9 million, or less than 1 per cent of the total online ad spend. Email advertising, an often over-looked category, appears to be declining, dropping from $20 million to $9 million year over year.
The big categories are:

  • Search: $478 million
  • Display: $432 million
  • Classified/Directory: $305 million (an unhelpful jumble of a category)

And newspapers?

According to this Canadian Newspaper Association report (.pdf), newspapers snagged $196 million of that $1.2B spending which was about $44 million more than they’d earned the year before. But the numbers also show that Canadian newspapers are failing to keep their share of that growth — while their online ad revenue grew by 29 per cent, that fell seriously behind the overall growth rate of 38 per cent.

As a percentage of total revenue, online is growing, adding up to 7.6 percent of newspaper’s total revenue in 2007, as opposed to 5.8 percent the previous year.


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