Study: Online advertising revenues reach $1.2 billion in 2007
By Adnews Staff
According to the Toronto-based Interactive Advertising Bureau of Canada, Canadian online advertising revenues totaled approximately $1.2 billion in 2007, representing a 38% increase from 2006. Approximately $260 million, or 21%, of this revenue was generated by French Canadian online properties. The bureau changed its methodology for its most recent survey, also applying the new method to its 2006 data. As a result, the organization's stated online ad revenues for 2006 have been revised from $1 billion to $900 million. "The industry can feel confident about all past and present numbers," said Martin Lundie of Ernst & Young, which analyzed the survey data. "Firstly, because the factors we adjusted for in the 2007 survey were not present prior to 2006, and secondly, because of the extremely high response rate. Surveys with a high response rate from respondents with the most significant size, provide a very high degree of accuracy and reliability." Display advertising represented 35% of all ad revenue, while search advertising accounted for 38%, classified ads for 25%, video ads for one percent and email advertising for one percent. The largest online advertisers are automotive companies, technology companies, financial firms, retailers and entertainment companies. The bureau projects that online ad revenue for 2008 will reach $1.5 billion.