Magna, a global media investment and research company, has released its Advertising Forecast report, which offers a look at the figures that have shaped the industry in 2024 and analyzes what the market will look like in 2025.
This year, Canada remained the ninth-largest advertising market in the world. The report shows that advertising sales in the country rose 8.4% in 2024 – the market’s biggest rise in 15 years – to CAN$24.7 billion. Looking ahead, Magna forecasts an increase of 6.3% in advertising market sales to $26.2 billion by 2025.
Revenues from traditional media owners (TV, broadcast radio, print, and OOH) fell 3.2% to $7.2 billion. Print advertising dropped 3.6%, with newspapers and magazines falling 4% and 2%, respectively, and radio decreasing 2%.
The report also shows that the OOH sector grew 7.7% this year, with the market seeing more consolidation with the completion of the merger between Bell’s Astral OOH and Outfront Media (now OutEdge). Cross platform TV ad revenues, including linear TV and premium long-form streaming, dropped 5.4%, despite the additional demand generated around the Summer Olympics, as the lack of scripted programming (due to the scriptwriters’ strike in the U.S.) impacted the release of new content.
Meanwhile, total digital ad sales – which includes search, retail media, social media, short-form video, and digital banners – increased 14% to $17.5 billion. Search and social media (which account for approximately two-thirds of all advertising sales) grew by 14% and 15%, respectively. Search grew to $10.1 billion, while social media increased $6.4 billion. According to the report, the growth of AI products, such as Google’s Gemini and Meta’s Llama, improved search and social media activity and prices, boosting advertising sales. The rates represent an acceleration compared to 2023 and follow in the footsteps of U.S. trends.
“Social continues to be a fertile space for advertising investment following consumers’ inherent interest in engaging on social platforms; however, this is underscored by the risk of governmental and regulatory moves that could potentially impact access to some apps,” Leanne Burnett-Wood, president, of MAGNA Canada, tells MiC. “Search continues to be a staple for tactical support of marketing campaigns, and its role may become more pronounced with the rise in ecommerce and e-retail adoption.”
Traditional media owners could see a 2% decline in 2025, while cross platform TV ad sales are expected to decline by 4%, according to the report. Audio sales (broadcast and digital) will also fall 1% to $1.5 billion, as will publishing sales (print and digital), which will decline 2% to $2 billion. Overall, total digital ad sales will grow by 10%, driven in part by the rise of retail media and product search, as well as AI. OOH ad sales will also increase by 7%, with digital OOH ad sales up 15% to account for 37% of the total, slightly higher than in the U.S. at 33%.
