{"id":7619,"date":"2023-08-29T21:32:11","date_gmt":"2023-08-30T01:32:11","guid":{"rendered":"https:\/\/acaweb.ca\/en\/?p=7619"},"modified":"2023-08-29T21:33:24","modified_gmt":"2023-08-30T01:33:24","slug":"glass-half-full-despite-popular-belief-canada-ad-spending-is-on-the-rise","status":"publish","type":"post","link":"https:\/\/acaweb.ca\/en\/2023\/glass-half-full-despite-popular-belief-canada-ad-spending-is-on-the-rise\/","title":{"rendered":"Glass Half Full: Despite Popular Belief, Canada Ad Spending is On the Rise"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/acaweb.ca\/en\/wp-content\/uploads\/sites\/2\/2023\/08\/water-glass-with-coins-in-it-300x200.jpg\" alt=\"\" width=\"300\" height=\"200\" class=\"alignleft size-medium wp-image-7620\" srcset=\"https:\/\/acaweb.ca\/en\/wp-content\/uploads\/sites\/2\/2023\/08\/water-glass-with-coins-in-it-300x200.jpg 300w, https:\/\/acaweb.ca\/en\/wp-content\/uploads\/sites\/2\/2023\/08\/water-glass-with-coins-in-it-1024x683.jpg 1024w, https:\/\/acaweb.ca\/en\/wp-content\/uploads\/sites\/2\/2023\/08\/water-glass-with-coins-in-it-768x512.jpg 768w, https:\/\/acaweb.ca\/en\/wp-content\/uploads\/sites\/2\/2023\/08\/water-glass-with-coins-in-it-1536x1025.jpg 1536w, https:\/\/acaweb.ca\/en\/wp-content\/uploads\/sites\/2\/2023\/08\/water-glass-with-coins-in-it-922x615.jpg 922w, https:\/\/acaweb.ca\/en\/wp-content\/uploads\/sites\/2\/2023\/08\/water-glass-with-coins-in-it-262x175.jpg 262w, https:\/\/acaweb.ca\/en\/wp-content\/uploads\/sites\/2\/2023\/08\/water-glass-with-coins-in-it.jpg 1920w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/p>\n<p>It\u2019s not new news that the pandemic upended every facet of consumer behavior \u2013 from travel regulations to entertainment shifts, and home DIY projects. But while society today operates in more of a post-pandemic fashion, many Canadian brands and advertisers are still coping with its impact \u2013 especially when it comes to advertising.  <\/p>\n<p>However, ad spending in Canada 1H 2023 said otherwise. And while the numbers may have been smaller compared to those from before the pandemic, the story is promising. <\/p>\n<h3><strong>Positive story, eh?<\/strong><\/h3>\n<p>While some Canadian marketers are experiencing a bit of a downturn in overall advertising spend, total spending actually remained relatively flat in the first half of 2023 (1H 2023). In fact, Canada ad spending was up 0.3% YoY \u2013 despite an \u2018overly hot\u2019 ad market in 2022 \u201cpost-pandemic.\u201d And, when digging into the data, key categories drove growth. <\/p>\n<h3><strong>Digital Dominated Dollars<\/strong><\/h3>\n<p>If there\u2019s one thing you can always count on when it comes to advertising, it\u2019s that dollars follow consumer behavior, and, as some say, \u201cwhere the eyeballs are.\u201d Therefore, it\u2019s not surprising we saw Digital ad spend increase significantly within the first half of 2023. <\/p>\n<p>Overall, Digital media grew by 7% YoY. And as consumers continue to shift their focus towards long-form video and streaming, we saw Linear TV spending decline by 10% while OTT Video skyrocketed by a whopping 74% YoY. Worth noting, podcasts are still popular \u2013 boasting a 21% increase in the first half of 2023 compared to the year prior. <\/p>\n<h3><strong>Out of Home Drove Up North<\/strong><\/h3>\n<p>Speaking of eyeballs, many of them stayed indoors during the pandemic. I remember it quite clearly: the restrictions, lockdowns, stay-at-home advisories, and airport\/travel limitations. This resulted in a hard hit to OOH, but we\u2019ve since seen it spike as those limitations lifted \u2013 impressive growth for the category so far this year.  In first half 2023, OOH showed double digit growth \u2013 up 14% YoY. While these numbers are still far from pre-pandemic levels, (down 35% compared to H1 of 2019), growth continues for the medium in a sign of sustainable strength. <\/p>\n<h3><strong>Investing in Ourselves Catapulted Category Spend<\/strong><\/h3>\n<p>As many stayed indoors, they turned to home improvement projects to pass the time while prioritizing personal care \u2013 both trends which have withstood pre-\/post-pandemic shifts in consumer behavior. This resulted in a whopping 95% increase in ad spending within the Home Improvement and Gardening category and nearly doubling their ad spend in 2022.  Despite soaring interest rates and the high cost of homes in Canada, the Real Estate category saw the same doubling of ad spending, up 102% vs. 2022.  And in the first 6 months of 2023, we also saw a near $36 Million in incremental ad spending in the Personal Care categories (Hygiene, Skin Care, Makeup, Hair Care, etc) \u2013 a 15% increase in investment from the year prior in an already-major category of advertising.<\/p>\n<p>It\u2019s clear brands continue to capitalize on the opportunity to reach consumers passionate about these product categories post-pandemic. But where are they spending, you ask? Let us not forget where ad dollars flow.  Yes, these categories are investing in Digital and OOH, both up 38% and 23% respectively, but they\u2019re also investing in broadcast with TV up 3% and Radio up 68%.  Within Digital, long-form video \u201cOTT\u201d was up 89%, Audio spend was up 171%, short-form video \u201cOLV\u201d up 29%, Display ad formats up 30%, and Search up 27%.<\/p>\n<p>It&#8217;s important to highlight simultaneously that, Pharmaceuticals are driving ad spend growth in Canada with overall spend up 24% YoY, and first-time, new investment into areas like Programmatic DOOH and Podcasts.  While Pharmaceuticals spending in Video ad formats isn\u2019t new, it catapulted Display to the top spot with an incremental volume of $12.5 Million in spending in the first 6 months of 2023.  <\/p>\n<p>While it\u2019s clear we are still feeling the effects of the pandemic, society has adjusted to a new normal \u2013 and that\u2019s exactly what\u2019s taking place today in advertising spend. Looking back on the past two years in comparison to today, advertising is bouncing back. Things have and will continue to return to \u201cnormal.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It\u2019s not new news that the pandemic upended every facet of consumer behavior \u2013 from travel regulations to entertainment shifts, and home DIY projects. But while society today operates in more of a post-pandemic fashion, many Canadian brands and advertisers are still coping with its impact \u2013 especially when it comes to advertising.  <\/p>\n<p>However, ad spending in Canada 1H 2023 said otherwise. And while the numbers may have been smaller compared to those from before the pandemic, the story is promising.<\/p>\n","protected":false},"author":189,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[432],"tags":[970,971,194,969],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Glass Half Full: Despite Popular Belief, Canada Ad Spending is On the Rise | Association of Canadian Advertisers<\/title>\n<meta name=\"description\" content=\"While society today operates in more of a post-pandemic fashion, many Canadian brands and advertisers are still coping with its impact \u2013 especially when it comes to advertising.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link 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