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Online Advertising Passes $1B Canadian Redux

Shane | May 2nd, 2007
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After yesterday's post, my boss a friend and I had a discussion about what it all meant.

His take is that while the IAB is predicting significant slowing in online advertising in the coming year, this is just a pause so everyone can take a moment to stop and catch their collective online advertising breath.

iab1.JPG

It plays out like this, states he: The mindshare for Internet usage is give or take 25% of time and as such, the online advertising budget should be approximately 25% of the total advertising/marketing mix, not the scant 8% it currently is.

Two things are worth noting here, according to my friend.

First off, now is the time to get into online advertising in Canada as the rates are clearly too low.

Secondly, that pause (albeit double-digit growth) will only be a plateau as things like mobile advertising and video advertising come into their own.

Frankly, I can't argue any of it and found it to be an interesting perspective.

What I didn't respond to yesterday was my personal feeling that increased clutter means decreased conversion harkening us back to the time when the banner ad reigned supreme.

Conversion conversations will become louder and louder and with Google not doing commerce or Google Products or Froogle or whatever you want to call it here, it will be interesting to see who picks up the ball and decides to run with it because it will matter as marketers demand more from the Canadian online marketplace and those who work within it.

Ladies and gentlemen, start your search shopping engines.

Have a good one.

~The (SEP) Guy

PS - My bad. I linked to the Globe & Mail story, yesterday and not the actual IAB report. Here's the IAB Canada link.

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One thought on “Online Advertising Passes $1B Canadian Redux”

  1. Joem says:
    May 3, 2007 at 10:40 am

    Interesting. I agree that now is the time to get into Internet advertising in Canada as the rates are clearly too low. As we progress into the modern age, this market will flourish and provide a lot of opportunities for the online community.

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