Retail Platform Advertising - Canada

In Canada, ad spending in the Retail Platform Advertising market market is projected to reach US$3.02bn in 2024.
Ad spending in this market is expected to demonstrate an annual growth rate (CAGR 2024-2030) of 14.22%, leading to a projected market volume of US$6.71bn by 2030.
The average ad spending per user in the Retail Platform Advertising market market in Canada is anticipated to amount to US$120.10 in 2024.
In a global context, the majority of ad spending will be generated the United States, with a projected figure of US$57.63bn in 2024.
In Canada, the retail platform advertising market is increasingly leveraging data-driven strategies to enhance consumer targeting and engagement across digital channels.

Definition:

Retail platform advertising (RPA) refers to digital ads displayed on websites and apps dedicated to retail platforms, such as Amazon, Walmart, eBay, Alibaba, and JD.com. This includes all types of advertising across various devices, e.g., PCs, smartphones, and tablets, and covers formats such as sponsored products, banners, and videos. RPA specifically excludes offline retail ads (e.g., in-store displays and billboards), off-site ads (e.g., ads appearing on non-retail websites or apps), ads on social media platforms (e.g., Facebook or Instagram), and ads on search engines (e.g., Google or Bing).

Additional Information:

It is important not to confuse RPA with retail media networks (RMNs). RMNs involve digital ads that are also displayed on retail e-commerce sites or apps, but these ads are purchased through a retailer’s media network or a demand-side platform (DSP). While RMNs include ads on sites such as Amazon and Walmart, they also cover ads bought through networks such as Amazon DSP, Walmart Connect, and Etsy’s Offsite Ads, and these ads may not necessarily appear directly on the retailer’s e-commerce site or app. Unlike RPA, RMNs represent a broader approach that encompasses a range of ad placements, both on and off the retailer’s own platforms.

Digital ads displayed on websites and apps dedicated to retail platforms
All types of advertising across various devices, e.g., PCs, smartphones, and tablets
All types of sponsored ad formats, such as sponsored products, banners, and videos

Offline retail ads (e.g., in-store displays and billboards)
Off-site ads (e.g., ads appearing on non-retail websites or apps)
Ads on social media platforms (e.g., Facebook or Instagram)
Ads on search engines (e.g., Google or Bing)

The Retail Platform Advertising Market in Canada is witnessing subdued growth, influenced by factors such as market saturation, evolving consumer preferences, and increased competition among platforms, which are affecting advertisers' investment strategies and overall expenditure.

Customer preferences: In Canada, consumers are increasingly prioritizing personalized and sustainable shopping experiences, driving a shift in retail platform advertising strategies. There is a growing preference for brands that demonstrate environmental responsibility and ethical practices, particularly among younger demographics. Additionally, the rise of mobile commerce and social media influence is reshaping consumer interactions with brands, leading advertisers to invest in targeted, engaging content that resonates with values of inclusivity and social consciousness.

Trends in the market: In Canada, the Retail Platform Advertising Market is increasingly embracing data-driven strategies as consumers demand more personalized shopping experiences. Brands are leveraging advanced analytics to tailor advertisements, focusing on sustainability and ethical practices to resonate with environmentally conscious shoppers, particularly among millennials and Gen Z. Social media platforms are becoming pivotal for brand engagement, prompting retailers to create interactive and authentic content. This shift not only enhances customer loyalty but also encourages industry stakeholders to reassess their marketing approaches to align with evolving consumer values.

Local special circumstances: In Canada, the Retail Platform Advertising Market is shaped by the country's diverse cultural landscape and a strong emphasis on inclusivity. The bilingual nature of Canada necessitates tailored advertising strategies to resonate with both English and French-speaking consumers. Additionally, robust privacy regulations, such as PIPEDA, compel brands to prioritize transparency and ethical data usage. Canada’s focus on sustainability also drives brands to adopt eco-friendly practices, aligning their marketing efforts with the values of environmentally conscious consumers, particularly millennials and Gen Z.

Underlying macroeconomic factors: The Retail Platform Advertising Market in Canada is significantly influenced by macroeconomic factors including shifts in consumer spending, technological innovations, and the broader global economic landscape. The resilience of Canada's economy, characterized by steady job growth and rising disposable incomes, supports increased investment in advertising efforts. Additionally, the trend towards e-commerce and digital platforms fuels demand for innovative advertising strategies. Fiscal policies promoting digital economy initiatives and supporting small businesses also enhance competitive dynamics, while global economic uncertainties, such as trade tensions and inflation, can impact advertising budgets and consumer confidence, ultimately shaping market performance.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on Retail platform ad spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising by businesses for digital advertisements.

Modeling approach:

Market sizes are determined by a combined top-down and bottom-up approach, based on a specific rationale for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party reports, and survey results from our primary research (e.g., Consumer Insights). Next, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and digital consumer spending. 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 particular 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.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per 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).

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