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May 3
Canadian Online Ad Revenue Increases 80 Percent in 2006

Canadian online ad revenue has increased 80 percent from 2005, says eMarketer, citing the "2006-07 Canadian Internet Advertising Revenue Report."

According to the IAB, the reasons from the growth are integrated campaigns, new search ad choices, rich media and video pre-rolls.

But an analyst for eMarketer, David Hallerman says it's connected more to online ad display spending than anything else.

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

"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."

This could be a bellwether for the U.S. and other coutries as broadband adoption continues to grow.

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