Advertising Costs - Canada

Part
01
of three
Part
01

Canada Advertising Costs Part 1

Average Advertising CPM in Canada

Industry Average Podcast Advertising Rates

Mobile Video Advertising Rates

  • Ad rates per 1,000 people vary from $7.13 to $10.60 for rewarded videos on Android.
  • Ad rates per 1,000 people vary from $4.48 to $13.87 for rewarded videos on iOS.

Research Strategy

After a full scale exhaustive research, we were unable to find any private domain information about the average advertising cost per 1,000 people in Canada for Broadcast Television, Cable television, Podcasts, Radio, and Mobile Video.

Our research began with a search of credible databases and resources like eMarketer, the Canadian Media Directors' Council (CMDC), the Association of Canadian Advertisers (ACA), Canadian Media Sales, Canadian Radio-television and Telecommunications Commission (CRTC), Canadian Marketing Magazine, Canada Radio Media, Radio Advertising deals, Statistics Canada, and Future TV Advertisign Forum of Canada. We found a plethora of articles on the benefit of advertising on TV, strategies for buying radio media ads in Canada, themes in TV advertising in Canada, and laws regarding TV and Radio commercials in Canada. Unfortunately, we did not locate any resources that could provide us commercial costs for Broadcast Television, Cable television, Podcasts, Radio, and Mobile Video, per 1000 people. We did find average CPM rates laid out in a neat graphical comparison of different media. However, the graph didn't have any reference to the rates being limited to ages 25 – 54 or 18+, nor did it give any information about the period of the commercial. We also found a source with podcast ad rates which are average of entire podcast ad industry. We have included findings from both sources in the above helpful findings.

We next looked for data which we can use to calculate the current average CPM rates of advertising for ages 25 – 54 on different medium. We looked on the media benchmarking websites like Nielsen and Numaris, from which maximum TV and Radio channels derive their ad rates. We also looked at websites of Canada Association of Broadcasters (CAB), Canada TV Media, ITWC, and UMWW. We found reports on net ad revenue from TV and radio channels, and rising trends in advertising; however, no mention of ad rates or CPM was to be found. We did get one Nielsen benchmarking report on ad rates for 2016; however, the report was to be individually requested and it was for UK. We then looked at Canada Advertising Rates and Data (CARD) website, and its sister website The National List. The websites had all the necessary data necessary with statistics, as promised by the websites. However, when we actually found out pages of individual TV, Radio, and Podcast channels, we found their rates to be behind a paywall.

To make a complete search, we also checked for individual ad rates on websites of prime broadcast giants like CTV Television Network, CBC, Bell Media, Rogers Entertainment, Corus Entertainment Inc., and GroupTVA Inc; and radio networks like Aboriginal Voices Radio Network, British Columbia Target Radio Market, CFCB/CFSX, and Christian Radio Network. Our hope was to find individual rates of advertising for these networks and then triangulate an average from those values. However, this didn't work out as all these websites had an option to personally request ad rates from the website owners, but no publicly available data which can be used for triangulation.

We then tried to find mentions of CPM or rate of advertising to look for any relevant metric that could be used in place of CPM rates or advertisement. We scoured Canadian business and marketing news websites like BNN Bloomberg, Canadian Business, Financial Post, The Canadian Business Journal, The Globe and Mail, Vancouver Sun, Business Chief Canada, Strategy Online, Media in Canada, Mast Head Online, Adweek, IAB Canada, and News Media Canada. We found many articles on definition of CPM, CPE, and CPI; uses of CPM to compare ad agencies; and tips to improve ad rates. However, we couldn't find any relevant metrics that could be used to properly provide ad rates in Canada.

Continuing on, we attempted to find paywalled sources which may have held the specific CPM data we were after. However, we couldn't find any paywalled source different from the ones we had already encountered and mentioned previously.

As a last resort, we expanded our criteria to ad rates in general. We removed the filter of rates par 1000 people and even then, couldn't get any further from what we had already found. We then tried to find the same data for all the North America, but found that such data was neither available nor practical due to population, demand, and industry variations.

Hence, after a diligent research, we concluded that ad rates for Broadcast Television, Cable television, Podcasts, and Radio were available, but either behind a paywall or privately request-able.
Part
02
of three
Part
02

Canada Advertising Costs Part 2

The average advertising cost per 1,000 people in Canada for mobile display, desktop display, and out-of-home posters are $47,000, $21,375, and $9.21, respectively. Additionally, Click Per Minute (CPM) rates are usually as high as $7 to $9 on desktop video advertising. We were unable to find the average advertising cost per 1,000 people in Canada for desktop video. Our key findings and an explanation of our research strategy are detailed below.

DESKTOP VIDEO

  • Desktop video advertising is attracting a new digital audience because many TV viewers have cut the cord or come very close to doing it.
  • Audiences are going digital, where they are easier to target with personalized rich media.
  • Advertisers are now creating content that can lead to more engagement than traditional TV could ever offer.
  • With Adobe Advertising Cloud, advertisers are now delivering dynamic, interactive video ads within all types of online inventory and placing them next to high-quality content that today’s viewers are plugged into.
  • In the last quarter, 62% of video ads served on desktops in Canada were 15 seconds long.
  • Click Per Minute (CPM) rates are usually as high as $7 to $9 on desktop.

MOBILE DISPLAY


DESKTOP DISPLAY


OUT-OF-HOME POSTERS

  • The different types of out-of-home posters available in Canada are king posters, murals and door decals, interior cards, superbuses and supertrains, and seventy posters.
  • The price of out-of-home posters is as low as $50 to as much as $175,000, with an average of $87,525.
  • It should be noted that out of home ads like posters, billboards have an approximate impression of about 9.5 million reach in Canada.
  • Therefore, the average advertising cost per 1,000 people in Canada for an out-of-home poster is about $9.21.

King Posters


Mural and Door Decals


Interior Cards

  • This is the smallest but most effective of all the posters.
  • They are high-frequency ads and are typically available in two sizes—standard and super.
  • The prices for the standard posters range from $5,670 to $34,000, while prices for the super posters range between $50 - $70.
  • They all run for a 4-week duration.


Superbuses and Super Trains


Seventy Posters


RESEARCH STRATEGY

We started by searching for general information on the average advertising cost per 1,000 people for the media listed and we found a good deal of information. We then narrowed our search to focus on the average advertising cost per 1,000 people in Canada for the media listed, and this strategy returned more precise information, providing us with the requested data. The sources chosen are the top and most frequently cited experts and reviewers in the advertising industry. These ad spends appear in almost all sources, and the data appears consistent across several years of writing that covers advertising spend.

Although some sources included were not published within the past 24 months, they have been included because of their relevance and value. They were the most recent sources that provide direct and specific information about the average advertising cost per 1,000 people in Canada for the requested media. Additionally, each of these sources provides a forecast that we have validated using more recent sources.

Calculations for Mobile Display

  • When calculated, the total advertising spend on mobile display in Canada is put at 75.1% of 1.7 billion = 1,276,700,000.
  • To determine our approximate out of mobile display ad costs per 1,000, we divided the total viewership by 1,000. Then, divided the total cost of a mobile display by the number per 1,000 to get the average advertising cost per 1,000 people in Canada for mobile display.
  • 25.5 million divided by 1,000 = 25,530 (this is the number per 1,000), and $1.2 billion divided by 25,530 = $47,000.
  • Therefore, the average advertising cost per 1,000 people in Canada for mobile display is put at $47,000.

Calculations for Desktop Display

  • When calculated, the total advertising spend on desktop display in Canada is put at 32.1% of 1.7billion = $545,700,000.
  • To determine the approximate out of desktop display ad costs per 1,000, we divided the total viewership by 1,000. Then, we divided the total cost of a desktop display by the number per 1,000 to get the average advertising cost per 1,000 people in Canada for desktop display.
  • 25.5million divided by 1,000 = 25,530 (this is the number per 1,000), and $545million divided by 25,530 = $21,375.
  • Therefore, the average advertising cost per 1,000 people in Canada for desktop display is put at $21,375.

Calculations for Out-of-Home Posters

  • To determine our approximate out of home poster ad costs per 1,000, we divided the total viewership by 1,000. Then, we divided the number by the total cost of posters to get the average advertising cost per 1,000 people in Canada for out-of-home posters.
  • 9.5 million divided by 1,000 = 9500, and 87,525 divided by 9500 = $9.21 cost per 1,000.
  • Therefore, the average advertising cost per 1,000 people in Canada for out of home posters is about $9.21.

Unfortunately, we were unable to find the average advertising cost per 1,000 people in Canada for desktop video.

Strategy #1

We started our search by looking through news articles, press releases, and industry blogs and reports like Smart Insights, AdsoftheWorld, DigitalGabe, Adage, AdBrands, NeilPatel, and AdExchanger to check for any mention of desktop video advertising costs. We used keywords such as "desktop adverts," "desktop," "ad view," "desktop ad costs," and "Canadian desktop video advertising" to identify the information. Although AdsoftheWorld highlighted the ad views, it focused on the adverts of different categories and did not mention anything related to desktop ad costs. We also looked through statistical websites such as Similar Web and Optimizely. However, information on these sites focus on website traffic and not on the average cost of advertising for desktop video. We, however, found out that “ad CPM rates are usually as high as $7 to $9 on desktop” according to the article by MonetizeMore.


Strategy #2

Next, our focus shifted towards the cross-referencing of credible news sources, blogs and press releases to uncover details about advertising costs for desktop video. We looked through local press sites like the Wmarketer, blogs such as FitSmallBusiness. There was however no information about the costs of advertising for desktop video. We found an article by eMarketer titled “Desktop vs. Mobile Display Ad Benchmarks in Canada, Q4 2016 (among impressions served by Moat Analytics)” that promised to give the details about the cost and impressions of Desktop video and display advert but it was hidden behind a paywall.


Strategy #3

We went further to search through government sites such as the Canadian agency responsible for advertisements. We found an article by the Interactive Advertising Bureau of Canada titled “IAB Canada 2017 Actual + 2018 Estimated Canadian Internet Advertising Revenue Survey” and another by IAB Canada titled “Resources” in order to find out anything we could about Desktop Video Advert. These articles gave the total revenue generated by advertising in the country. We found nothing about the average cost of desktop video.

After a rigorous and thorough search for average advertising cost per 1,000 people in Canada for Desktop Video, we arrive at the conclusion that the information has not been made available to the public and those available are hidden behind paywalls.
Part
03
of three
Part
03

Canada Advertising Costs Part 3

After thorough research, we could not provide information regarding the average advertising cost per 1,000 people in Canada for transit shelters, subway, digital out of home large format, and place-based digital media. We have, however, provided various useful data about advertising rates on the Toronto Transit Commission (TTC).

USEFUL INSIGHTS

Advertising on the TTC, which includes the Transit Shelters and Subways

  • The cost of subway advertising depends on the type of the ad, and this can be a backlit diorama, two sheets, interior vertical or horizontal display, urban panels, or domination of the entire station.

The Rates for Advertising on the TTC

  • Vinyl decals on subway doors: $10,000 per 4 weeks per vehicle.
  • Full subway coverage: $45,000 for 12 weeks per vehicle.
  • King posters on subway (1 car/6 faces/3 per side): $765 (4 week net rate), $10,800 (12 week rate (per 4 weeks)), $9,000 (24 week rate (per 4 weeks)), and $7,200 (52 week rate (per 4 weeks)).

Digital Billboards:

RESEARCH STRATEGY

The research team started by looking for details on the advertising cost per 1,000 people in Canada for transit shelters, subways, digital out of home large format and place-based digital media on credible publications such as Ad Week, Ad Age and Advisor Canada. While these platforms provided details on advertising trends in Canada, their main focus was on digital advertising and had little information on advertising in subways, transit shelters, and place-based digital media. However, based on these resources, we learned that all advertising relating to the transit system in Toronto (TTC), is done by one company, the Pattison Outdoors. As such, we focused on this company to find out if they have mentioned the rates of their services on their official website. However, while the company website provides a list of the services offered by the company, there are no rates for these services. Despite this, we checked for posts by other ad companies such as Ad Hauliers which have mentioned the prices charged by Pattison Outdoors, which we have included under useful findings.

Next, we checked for this information in statistics websites like Statista and Stat Counter. The intention was to check for advertising rates for various platforms in Canada such as billboards and the TTC. However, the only available information on these platforms was the total ad spend in Canada and the sectors in the economy that have the highest ad spend.

Finally, we attempted to triangulate the information available. In this case, our objective was to find the total ad spend on the subways and digital billboards from Statista, then find the number of passengers and vehicles on transit in government records respectively. Based on these figures, we would then find the average advertising cost per 1,000 people in Canada. However, we could not get information on the total ad spend in the subways and digital billboards respectively, and while the Canadian government records provide details on the number of people in Canadian cities, it is impossible to determine how many of them use the subway or use their vehicles regularly.

Our assumption is, therefore, that there is no information specifically on the area because from my research it is clear that digital ads are what interests the industry experts since most of the reports and articles focus on digital platforms.
Sources
Sources

From Part 02
Quotes
  • "Let's not forget one of the most oldschool ways of TTC advertising there is: seventy posters. Referring to the size of the poster rather than the quantity, these posters grace the backs of buses and are usually prime for local businesses like real estate agents and franchises. "
Quotes
  • "These days, it’s hard to walk, drive or take public transit anywhere without seeing any advertising. Having outdoor advertisements in heavy traffic areas will create more awareness about your product or service you are trying to advertise. They have been proven to be effective for building brand recognition."
Quotes
  • "For advertisers, the emergence of mobile devices as dominant media consumption tools is leading to mobile-first marketing and sometimes mobile-only media buying. In 2018, more than one-third of all advertising dollars in Canada will be spent in mobile channels"
Quotes
  • "As for age, 54% of the audience members that saw ads from ecommerce brands were between the ages of 25 to 44. Advertisers need to pay attention to this segment and ensure that they have relevant ads to show them. "
Quotes
  • "The research firm predicts mobile investment in programmatic will increase 104.4% this year, following a “meteoric” rise of 484% in 2014. Currently, more than half (54%) of all Canadian mobile display ad spending comes via programmatic, a number that is expected to surge to 73% in 2017, when it will cross the $1 billion threshold for the first time. "
From Part 03
Quotes
  • "PATTISON rates will be $45,000 for subways on a 12 week net rate per vehicle."
Quotes
  • "Placed on both sides of outdoor transit vehicles, these eye-level posters come with the the option of vinyl extensions (as shown above) or with added headliners, which occupy the thin strip right above the windows."