Canada loses $2.6 billion on online advertising, says report

By Simon Hradecky, Paul Bagnell and Jennifer Jenkins Canadian advertising revenue fell by more than $2 billion last year, the federal advertising watchdog said Thursday, after the Liberals said online advertising would be a key part of the government’s advertising strategy.

The watchdog said the drop is in line with a decline of more than 12 per cent last year in digital advertising.

The fall was more than offset by a 10 per cent rise in the use of paid media, which includes online advertising and social media.

But the regulator also noted the fall is a drop from a year earlier.

“The overall advertising revenue in Canada was $2,726.9 million in 2014,” said spokesperson Paul Bresson.

He added the number of advertising ads being paid for online is on the rise, which will have a significant impact on the revenue from the advertising. “

These declines are a result of changes in advertising technology, and more importantly, we cannot rule out the possibility of some future downturn.”

He added the number of advertising ads being paid for online is on the rise, which will have a significant impact on the revenue from the advertising.

“While we are seeing a drop in the number and volume of paid online ads, this decline is more than compensated by a growth in the amount of ad dollars being spent online,” Bressons statement said.

“This growth is in part a result, as part of a larger trend, of increasing mobile ad spending and the rapid growth of mobile advertising revenue.”

The Canadian Advertising Standards Institute said the average daily advertising spend for Canadian online consumers dropped by 2.5 per cent in 2014, but is expected to be even smaller this year as ad buyers shift to other types of media.

The agency added that the average amount of online advertising spending was $1,056 per day in 2014.

Bressouns office also said that Canadians are spending more time on social media in 2014 than ever before.

The survey found that while Facebook accounted for more than half of all digital ad spending in Canada, the number one social media platform was Twitter.

Bussons office also noted that the number that are spending on other platforms is also increasing.

The report also found that Canadian internet users spend more than one billion hours online per month, which is more time than they spend on desktop.

“Online advertising is increasingly used in the context of digital content, social media and digital commerce, and it is also used for news, entertainment and information,” the report said.

The government has said it will increase advertising spending to $10 billion over five years to boost the economy.

The $2-billion annual drop is also due to a “significant increase in the proportion of Canada’s advertising spending devoted to advertising on mobile devices.”

The report said the industry was also experiencing “significant and persistent” declines in ad revenue, as well as a “decrease in ad spending by Canadian businesses.”

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