Market Insights Advertising & Media Advertising TV & Video Advertising

Traditional TV Advertising - Canada

Canada

Ad spending in the Traditional TV Advertising market in Canada is forecasted to reach US$2.29bn in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of -2.09%, leading to a projected market volume of US$2.06bn by 2029.
The average ad spending per TV Viewer in the Traditional TV Advertising market in Canada is projected to be US$88.84 in 2024.
The number of users in the Traditional TV Advertising market in Canada is expected to reach 26.9m users by 2029.
In Canada, the rise of digital streaming platforms is challenging the dominance of Traditional TV Advertising in the advertising market.

Key regions: Germany, Europe, Japan, United Kingdom, Australia

Definition:
Traditional TV Advertising refers to ad spending on moving image formats broadcasted via traditional transmission channels such as terrestrial and digital terrestrial (DTTV, DTT, DTTB) TV, cable TV, satellite TV, and linear TV delivered via Internet Protocol television (IPTV). Terrestrial television uses traditional antennas that transmit analog signals. Analog terrestrial TV has undergone a digital switchover (DSO) to digital terrestrial TV in most parts of the world. For digital terrestrial TV, television broadcasting stations transmit TV content through radio waves to televisions in households in a digital format. Internet Protocol television (IPTV) refers to the delivery of television content via Internet Protocol networks. IPTV is used in subscriber-based telecommunications networks via set-top boxes or other customer-premises equipment (IPTV is included in the cable revenue split here). Traditional TV Advertising covers all ad spending on pay-TV operators and networks as well as free-to-air networks and free-to-air spin-off digital channels from terrestrial network operators. Usually, the distribution of advertising time in television programs is either carried out by the broadcasters themselves or by marketing agencies.

Structure:

Cable TV signals are transmitted through coaxial or fiber-optic cables directly to each household without the need for external antennas.
Satellite TV includes television programming with the use of communication satellites that transmit to satellite dishes. A dedicated satellite receiver (external set-top boxes or built into TV sets) decodes the television program.
Digital Terrestrial Television (DTT), sometimes known as direct-to-terrestrial television, is a type of television reception in which a signal is transmitted directly to a viewer's antenna rather than through a cable or satellite system. As a rule, HDTV signals are available through digital terrestrial television, and this type of television also makes better use of the radio spectrum.

Additional information:
Traditional TV Advertising comprises advertising spending, users, average revenue per user, and user demographic. The market only displays B2B spending and users. Figures are based on Traditional TV Advertising spending and exclude agency commissions, rebates, production costs, and taxes. For more information on the data displayed, use the info button right next to the boxes.

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Analyst Opinion

The Traditional TV Advertising market in Canada is experiencing significant growth and development.

Customer preferences: Canadian consumers still have a strong preference for traditional TV advertising. Despite the rise of digital platforms and streaming services, many Canadians continue to watch traditional television, providing advertisers with a large and engaged audience.

Trends in the market: One of the key trends in the Canadian Traditional TV Advertising market is the increasing demand for targeted advertising. Advertisers are leveraging data and analytics to better understand their audience and deliver personalized advertisements. This trend is driven by the desire to maximize the effectiveness of advertising campaigns and increase return on investment. Another trend in the market is the integration of digital capabilities into traditional TV advertising. Advertisers are adopting technologies such as programmatic buying and addressable TV to enhance the targeting and delivery of their advertisements. This allows advertisers to reach specific demographic segments and optimize their advertising spend.

Local special circumstances: One of the unique aspects of the Canadian Traditional TV Advertising market is the bilingual nature of the country. Advertisers need to consider both English and French-speaking audiences when developing their advertising campaigns. This presents an opportunity for advertisers to tailor their messages to specific language groups and effectively engage with the diverse Canadian population.

Underlying macroeconomic factors: The growth of the Canadian Traditional TV Advertising market can be attributed to several underlying macroeconomic factors. Firstly, Canada has a stable and growing economy, which provides a favorable environment for advertising investment. Secondly, the high level of competition among broadcasters and advertisers in Canada drives innovation and investment in the Traditional TV Advertising market. Finally, the regulatory environment in Canada is supportive of the advertising industry, providing a framework that encourages investment and growth. In conclusion, the Traditional TV Advertising market in Canada is experiencing growth and development driven by customer preferences for traditional television, the adoption of targeted advertising and digital capabilities, unique local circumstances, and underlying macroeconomic factors. Advertisers in Canada are leveraging these trends and factors to effectively engage with the Canadian audience and maximize the impact of their advertising campaigns.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on traditional TV advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers non-digital formats such as terrestrial TV, cable TV, satellite TV, and linear TV.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party reports, and survey results from our primary research (e.g., Consumer Insights Global Survey) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, population, media consumption, number of households with television, and consumer spending.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.