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Tuesday, July 28, 2009
Nearly four months after their U.S. counterparts released the figures, the IAB Canada announces that Internet advertising revenues in 2008 grew at a blistering 29% pace, to $1.6 billion.
Even as a proportion of population and the size of the economy, this is below where it should be relative to the U.S. figure of $23.4 billion (up 10.6%), but the rapid growth is encouraging.
2009 has posed challenges in all sectors of the economy thus far, but both IAB announcements point to digital advertising as a mainstay of the economy, with their respective spokespersons highlighting the ongoing secular shift to online that drives growth even through a recession.
In the U.S., Search and Classified combined make up 59% of total digital spend with display placing second at 33%; in Canada the figure clocks in at 68% for Search and Classified combined, with display coming second at 31%. Curious about email? While still an important customer relationship medium, it's only at 2% of overall digital marketing spend as a prospecting method. In Canada that business is nearly dead with it making up less than 0.2%.
New studies need to be added to this mix to account for the full infrastructure costs of developing website technology, testing response, creating content, etc. How big is the investment "gap" in this area? Do companies plan to budget sufficiently in these areas? Those are open questions as larger companies make plans to redeploy the savings realized by reducing inefficient traditional ad spends.Labels: iab, online advertising
Posted by
Andrew Goodman
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D'oh!
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