Canadian online advertising revenues reached C$1.01 billion in 2006, according to the Internet Advertising Bureau of Canada’s (IAB’s) "2006-07 Canadian Internet Advertising Revenue Report." That’s a dramatic 80% jump over 2005.

Online Advertising Revenues in Canada, 2002-2006 (millions of C$ and % increase/decrease vs. prior year)

What made revenues jump so high?

The IAB said that integrated campaigns, new search ad choices, rich media and video pre-rolls all contributed to the rise. Several new blue-chip advertisers also entered the market for the first time in 2006.

eMarketer senior analyst David Hallerman noted that the breakdown of revenue by segment tells another story.

"Online display ad spending in Canada outpaces search advertising," said Mr. Hallerman. "In the US, about two dollars go to paid search for every dollar spent on display ads."

Online Advertising Revenues in Canada, by Segment, 2005 & 2006 (millions of C$ and % increase vs. prior year)

"That discrepancy is likely due to the substantially greater broadband penetration in Canada, at 58% of households according to eMarketer estimates, versus only 46% in the US, making the Canadian market even more valuable to brand advertisers buying display ads," Mr. Hallerman said.

Broadband Households and Penetration in North America, by Country, 2005-2011 (millions and % of total households) 

Via eMarketer