TV ad revenue up in 2011: PwC
Overall, the Canadian ad market was healthier than the US's in 2011, growing by 5% versus 2% south of the border.
The analysts at consultancy firm PwC again projected that Canada’s entertainment and media sector will beat the U.S. sector’s growth over the next five years, in part due to higher TV subscription and license fees charged north of the border.
In an annual international report released today, PwC said Canadian media and entertainment spending was projected to have hit a total of $44.2 billion in 2011, up from $41.8 billion in 2010. Furthermore, the overall total was forecast to grow to $46.9 billion in 2012, and rise to $60.6 billion in 2016. The compound annual growth (CAGR) between 2012 and 2016 is predicted to be 6.5%.
This growth outpaced the growth in the sector seen south of the border. While that market was undeniably larger—Americans were projected to spend a whopping $463.8 billion in 2011—the U.S.’s CAGR between 2012 and 2016 was calculated at 5.2%.
Growth in internet advertising is also going to be significant, with mobile advertising growing at 42.6% CAGR by 2016. This is followed by video internet advertising which is forecast to grow by 31.9%, banner display (16.8%) and search (13.5%).
TV advertising revenues totalled a projected $3.6 billion in 2011, up from $3.5 billion in 2010. Ad spending is projected to climb to $3.6 billion in 2012 and hit $4.7 billion by 2016. The CAGR between 2012 and 2016 is forecast to be 5.4%.
The overall advertising market is healthier in Canada than it was in the US last year, growing by 5% in Canada compared to 2% in the US. Over the night five years it is expected the two countries will grow at a similar pace, with growth rates expected at 6% by 2016.
Canadian TV subscription and license fees totalled a projected $8.9 billion in 2011, up from $8.2 billion in 2010. They would further climb to $9.6 billion in 2012 and hit $13.4 billion in 2016. The CAGR between 2012 and 2016 is forecast to be 8.6%.
From Playback Daily, with files from Val Maloney