Direct Messaging Advertising - Canada

Ad spending in the Direct Messaging Advertising market in Canada is forecasted to reach US$2.10bn in 2024.
The expected annual growth rate (CAGR 2024-2030) for ad spending is -0.42%, leading to a projected market volume of US$2.04bn by 2030.
Direct Mail Advertising holds the largest market share in Canada with a volume of US$1.44bn in 2024.
When compared globally, the United States is expected to generate the highest ad spending at US$29.98bn in 2024.
The average ad spending per capita in the Direct Messaging Advertising market in Canada is projected to be US$53.57 in 2024.
In Canada, the trend of utilizing Direct Messaging Advertising in the Advertising market is rapidly gaining popularity among businesses seeking personalized customer engagement strategies.

Definition:

Direct Messaging Advertising refers to a type of advertising format that involves sending advertisement messages directly to individual audiences or specific target groups through private communication channels. Direct Messaging Advertising includes both traditional and digital advertising methods, such as direct mail, e-mail, SMS, web push, instant messaging, and telemarketing. This form of advertising aims to establish a personalized and direct connection with potential customers.

Structure:

Direct Messaging Advertising typically refers to advertising formats used within various messaging platforms or direct messaging channels. These formats are designed to deliver targeted advertisements directly via private communication channels such as e-mail, SMS, direct mail, web push, telemarketing, and instant messaging.

Additional information:

Direct Messaging Advertising comprises advertising spending and average revenue per user. The market only displays B2B spending. Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. For more information on the data displayed, use the info button right next to the boxes.

SMS advertising
Direct mail advertising
Web push advertising
Telemarketing
Instant messaging advertising
Traditional direct messaging
Digital direct messaging

Service agencies
Consultant fees
Production costs
Design services

The Direct Messaging Advertising market in Canada is experiencing steady growth due to several factors. Customer preferences for personalized and targeted advertising, the increasing popularity of messaging apps, and the local special circumstances in the country are driving this development. Additionally, underlying macroeconomic factors such as the growth of the digital economy and the increasing smartphone penetration rate in Canada contribute to the expansion of the Direct Messaging Advertising market. Customer preferences in Canada are shifting towards personalized and targeted advertising. Consumers are becoming more selective in the ads they engage with, and they expect relevant and tailored content. Direct messaging advertising allows brands to reach consumers directly, providing them with personalized offers and promotions. This approach enhances customer engagement and increases the likelihood of conversion. The increasing popularity of messaging apps is another key driver of the Direct Messaging Advertising market in Canada. Messaging apps have become an integral part of Canadians' daily lives, with a significant portion of the population using platforms such as WhatsApp, Facebook Messenger, and iMessage. These apps provide a direct and immediate communication channel between brands and consumers, making them an ideal platform for targeted advertising. Trends in the Direct Messaging Advertising market in Canada include the use of chatbots and AI-powered messaging platforms. Brands are leveraging these technologies to automate customer interactions and provide personalized recommendations. Chatbots can handle customer inquiries, offer product suggestions, and even complete transactions within the messaging app. This trend not only improves customer experience but also allows brands to scale their advertising efforts. Local special circumstances in Canada also contribute to the development of the Direct Messaging Advertising market. The country has a highly connected population, with a high internet penetration rate and a large number of smartphone users. Canadians are early adopters of technology and are receptive to digital advertising. Furthermore, Canada has a strong economy and a robust digital infrastructure, providing a favorable environment for the growth of the Direct Messaging Advertising market. Underlying macroeconomic factors, such as the growth of the digital economy and the increasing smartphone penetration rate, further fuel the development of the Direct Messaging Advertising market in Canada. The digital economy is expanding rapidly, and consumers are increasingly relying on digital platforms for their daily activities, including shopping and communication. As a result, brands are shifting their advertising budgets towards digital channels, including direct messaging advertising. Additionally, the increasing smartphone penetration rate in Canada provides brands with a large and accessible audience for their messaging campaigns. Overall, the Direct Messaging Advertising market in Canada is thriving due to customer preferences for personalized and targeted advertising, the popularity of messaging apps, local special circumstances, and underlying macroeconomic factors. As these factors continue to evolve and advance, the market is expected to experience further growth and innovation in the coming years.

Data coverage:

The data encompasses B2B enterprises. Figures are based on Direct Messaging Advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising by businesses via e-mail, SMS, direct mail, messengers, web push, telemarketing, and instant messaging.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., the Statista Consumer Insights Global survey), as well as performance factors (e.g., user penetration, usage). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, number of internet users, number of smartphone users, internet coverage, and number of urban households. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets. The main drivers are GDP per capita, consumer spending per capita, and 4G coverage.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Data from the Statista Consumer Insights Global survey is reweighted for representativeness.

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

All advertising markets across the globe win, yet some win more than others. Ad spending worldwide reached almost 733 billion U.S. dollars in 2023, up less than three percent from the previous year. For comparison, in 2022, Switzerland ranked 20th among the leading economies by gross domestic product (GDP) with a result exceeding 800 billion dollars. Whereas global ad revenues concentrate in areas with either large populations or high purchase power – preferably both – their evolution depends on a larger set of indicators. It was forecast that, in 2024, South Asia will be the world's fastest-growing ad market, and the only out of nine with a double-digit increase rate: 12.1 percent. The second-placed region, comprising the United States and Canada, was projected to see its ad expenditure rise 7.6 percent.