TORONTO – According to new research from the Canadian Marketing Association, marketers plan to dramatically grow their ad spend between now and 2011.
A new report from the CMA today says that spending in Canadian media will increase from $19 billion in 2007 to more than $23.3 billion in 2011, with digital media leading the growth.
And, says the marketing association, that means “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% increase from today’s levels.”
Of course, 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, says the report.
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.
Other highlights from the CMA report say:
* 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," said Wally Hill, vice-president, public affairs and communications, in the press release. "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 demographic forecasting firm Global Insight, 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.
