Broadband penetration drives online ad spend

Where in the world is online advertising expected to grow faster than anywhere else over the next few years? The answer may surprise you.

by Helen Leggatt

According to PricewaterhouseCoopers’ (PwC) “Global Entertainment and Media Outlook” spending on internet advertising in Canada is set to grow faster than anywhere else in the world, even in Asia or Latin America.

PwC forecasts the spend on internet advertising will reach $2.03 billion (U.S) by 2011, a compound annual growth of 23.5 percent. That’s quite a hike when compared to the global average of 13.4 percent and 16.1 percent in the U.S.

Broadband penetration in Canada is among the highest in the world and experts say, this is the key factor driving online ad spending. As access to broadband increases globally over the next few years, PwC expects countries such as China and India to close the gap on North America.

"What you're going to see over the next five years is the other countries' penetration rates are going to grow quite significantly. It just means we're kind of at the head of the curve," said Tracey Jennings, leader of the entertainment and media practice for PwC in Canada.