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Internet: Marketing trends

As if to emphasize the explosion in Internet marketing, Microsoft’s $45 billion bid for Yahoo earlier this year demonstrated the software titan’s willingness to spend major cash for a bigger share of the online advertising market, a market Microsoft says will double from $40 billion to $80 billion by 2010.

In Canada, Internet ad revenue topped the $1 billion mark in 2006. Between search engines like Google and Yahoo, online video sites like YouTube and social networks like Facebook, Canadians are reporting spending more time on the Internet and less time watching TV or reading newspapers. According to a 2007 Ipsos Reid report, Canadians now spend an average of 5.4 hours per week accessing social networks online.

Facebook has more than 7.8 million Canadian users, averaging 2.1 visits per day, and it’s growing. In the first half of 2007, the website reported Canadians nearly doubled in relative presence compared to other non-U.S. countries. Vancouverites appear to be embracing social networks with particular gusto, with Facebook claiming more than 650,000 members in the Vancouver region.

YouTube is also being avidly adopted by Canadians, with about nine million Canucks visiting the video posting site each month, according to Toronto-based Solutions Research Group.

Canadian businesses, from breweries to cosmetics to fashion designers, are posting video ads on YouTube, hoping for an elusive but contagious viral effect to reach millions of consumers. In late 2007, YouTube launched a Canadian version of the site, one of 15 country-specific sites. The dedicated YouTube Canada community allows advertisers to deliver targeted advertising by buying ads on YouTube Canada, the whole community or both. Advertisers can also pay for home page banner ads, create brand-specific channels or pay to be associated with YouTube search function key words. •


Advertising: 2006 Canadian online revenue

CategoryPercentage of online revenue
Automotive16%
Consumer Packaged Goods14%
Entertainment (Music, Film, TV)9%
Financial16%
Leisure (Travel, Hotel, Hospitality)14%
Retail16%
Other15%

Source: Interactive Advertising Bureau of Canada


Advertising: 2006 vs. 2005 Canadian online revenue

20062005Change
Display$364M$230M58%
Search$353M$197M79%
Classifieds/Directories$273M$124M<120%
Email$20M$11M82%

Source: Interactive Advertising Bureau of Canada


Internet/interactive media organizations

comScore 90 Sheppard Avenue East, Suite 100, Toronto, Ontario, M2N-3A1 web: comscore.com p:416-642-1002 f:416-642-1007

Interactive Advertising Bureau of Canada web: iabcanada.com

Solutions Research Group 2200 Yonge Street, #910 Toronto, Ontario, M4S 2C6 web: info@srgnet.com p:416-323-1337 f:416-323-0338


Blogs, forums and news sites

Age of Persuasion – The Terry O’Reilly Blog: www.oreillyradio.com/

Canadian Magazines blog: canadianmags.blogspot.com/

Canadian Marketing Association Blog: www.canadianmarketingblog.com

Michael Geist – legal blog, copyright and Internet law expert: www.michaelgeist.ca/

Media in Canada: www.mediaincanada.com/

TV, eh?- What’s up in Canadian television: www.tv-eh.com/

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