CANADIAN AD SPEND ACROSS ALL MEDIA SIGNALS STRONG GROWTH TO 2011

CMA Release

Canadian marketers are bullish about their investment in the Canadian economy over the next five years.

According to new research from the Canadian Marketing Association (CMA), advertising spending in Canadian media will increase from $19 billion in 2007 to more than $23.3 billion in 2011. Moreover, every dollar spent on advertising will directly result in nearly $9 of economic activity in Canada, with overall direct sales from advertising campaigns expected to reach $203 billion by 2011, a 33 per cent increase from today’s levels.

Digital media is expected to lead all other marketing channels in 2011 in terms of direct sales, with purchases resulting from marketing offers received over the Internet and through commercial e-mail forecast to top $46.6 billion by 2011. By 2011, Canadian business will spend more than $3.3 billion on digital media in Canada, more than double the $1.4 billion recorded in 2007.

In other highlights from the CMA report:

• Advertising expenditure in Canada is forecast to expand at a compound annual growth rate of 5.3% over the 2007-2011 period.

• A large percentage of the ad spend in Canada will continue to be allocated to traditional media. Solid overall growth continues in all traditional media categories with television, direct mail and out-of-home experiencing the most rapid growth.

• Jobs directly linked to Canada’s marketing sector are expected to grow by 6.8% annually over the next five years to 1.2 million in 2011 from 940,000 in 2007. Employment gains will be strongest in digital media with close to 200,000 jobs by 2011, compared to nearly 75,000 in 2007.

• In 2011, almost $31 billion in goods and services will be purchased as the result of marketing offers over the telephone compared to $27 billion in 2007. More than half (53%) of the sales will originate as the result of business-to-business telemarketing calls.

“This report demonstrates the substantial and growing contribution that marketing makes to the economy both in terms of its financial investment and for its role in generating employment,” noted CMA’s Wally Hill, Vice-President, Public Affairs and Communications. “Moreover, the report points to the vitality of an industry that is exploring and introducing new concepts and new media to most effectively reach consumers of their products and services.”

Conducted by Global Insight, a world-class leader in economic and demographic forecasting, the Canadian Marketing Association report “Marketing’s Contribution to the Canadian Economy” includes ad spending impacts for more than 25 industries. Included are estimates to aid in marketing planning, the allocation of marketing dollars and the return on investment from specific media channels. Funding support was provided by Canada Post.

About the Canadian Marketing Association

With more than 800 corporate members, the Canadian Marketing Association (CMA) is the largest marketing association embracing Canada’s major business sectors and all marketing disciplines, channels and technologies. CMA is the marketing community’s leading advocate on the key public policy issues affecting both consumer and business-to-business marketers. As well, the Association is the principal provider of knowledge, marketing intelligence and professional development opportunities for marketers; and catalyst for networking and business opportunities within the marketing community.

About Global Insight

Recognized as one of the most consistently accurate forecasting companies in the world, Global Insight has over 3,800 clients in industry, finance, and government in 13 countries, including Canada, the U.S., Europe, Africa, Middle East and Asia.

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