The Dentsu Aegis Network is predicting that Canada’s ad market will grow by 3.1% in 2017 – a more cautious projection than the 4.2% growth predicted from Magna in its recent report.

Dentsu’s research points to a stronger start for the Canadian ad market in 2017 than was seen last year, with advertiser confidence improving alongside stability in the economy, according to the report.

Ad spend overall in the Canadian market is forecasted to hit US$9.2 billion in 2018, with year-over-year growth estimated at 2.7%.

Growth will be led by digital, which is projected to see year-over-year growth of 9.6% in 2017 and another 6.6% in 2018. Key drivers for digital will be mobile, online video and social. Digital ad spend is expected to reach US$4.2 billion in 2018, for an estimated 45% of total ad spend. The main driver of digital ad spend will be mobile, which is forecasted to increase by 20% year-over-year to reach U.S. $1.9 billion this year for a 46% share of digital ad spend.

Newspapers are expected to see a decline in ad spend of 5.5% in 2017 and 3% in 2018.

Globally, the Dentsu Aegis Network’s forecast is more cautious for 2017 than it was in 2016, with global ad spend growth falling to 3.8% from 4.8%. The company expects conditions to improve in 2018, with ad spend expected to grow by 4.3%, driven by events like the Winter Olympics and Paralympics, the FIFA World Cup and the U.S. Congressional elections.

Image: Shutterstock