Display and PR lead ad spend growth: StatsCan

Operating revenues for display advertisers and public relations led the way in terms of operating revenue growth from 2005 to 2006, reports Statistics Canada. Media buyers and reps, along with advertising agencies, continued to rake in revenues but saw the lowest growth rates.

Numbers from Statistics Canada’s annual survey of advertising and related services, showing growth in the sector from 2005 to 2006, were released on Friday.

Operating revenues for the sector rose 5.7% to 5.7 billion in 2006, with BC, Alberta and Saskatchewan leading the provinces in growth for the second straight year. From 2002-2006, Quebec’s growth in operating revenues declined from 26.5% to 24.1%. Alberta’s rose from 5.5% to 6.4%. Ontario took 57% of the operating revenues. Quebec followed at 24.1%. BC was next at 8%.

Operating expenses topped $5.1 billion, a 4.5% increase – and slightly more than one third of that money went to salaries, wages and benefits, which were up 8.6%. The national operating profit margin rose from 8% to 9.1%. Every province west of Ontario, however, posted operating profit margins higher than the national rate.

Here’s a breakdown on the growth in operating revenues by category within the sector, comparing 2005 to 2006 and the change in %:

Advertising agencies:, $2,388.8 million to $2,478.1 million, 3.7%

Public relations: $325.6 million to $361.2 million, 10.9%

Media buyers and reps: $284.7 million to $295.5 million, 3.8%

Display advertisers: $609.4 million to $713.5 million, 17.1%

Direct mailers: $304.2 million to $329.7 million, 8.4%

Flyer distribution: $318.4 million to $334.7 million, 5.1%

Specialty advertisers: $617.1 million to $627.7 million, 1.7%

All other services: $508.5 million to $523.6 million, 3%

The report is available at Statistics Canada’s website.

(Statistics Canada reports that ‘this sector does not include advertising sales by newspapers, magazines, radio, television or Internet, which accounts for the majority of the difference between results from this survey and calculations of total advertising spending in Canada.’)