Market Insights Advertising & Media Advertising

Social Media Advertising - Canada

Canada

In Canada, ad spending in the Social Media Advertising market is projected to reach US$4.18bn in 2024.
This ad spending is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 10.96%, leading to a projected market volume of US$7.03bn by 2029.
When compared globally, most ad spending will be generated China, with a forecast of US$84,650.00m in 2024.
Within the Social Media Advertising market in Canada, 79% of total ad spending is expected to be generated through mobile by 2029.
Additionally, the number of users in Canada's Social Media Advertising market is expected to reach 36.2m users by 2029.
In Canada, the growing emphasis on localized content in social media advertising is reshaping brand strategies to better engage diverse regional audiences.

Key regions: United States, France, Japan, Europe, Germany

Market

Region

Region comparison

Currency

Analyst Opinion

The Social Media Advertising market in Canada is experiencing significant growth and development. Customer preferences are shifting towards digital platforms, leading to increased demand for social media advertising. This trend is driven by the growing popularity of social media platforms, the rise of mobile internet usage, and the increasing importance of online presence for businesses.

Customer preferences: Canadian consumers are increasingly turning to social media platforms for entertainment, information, and communication. As a result, businesses are recognizing the value of advertising on these platforms to reach their target audience. Social media advertising allows companies to engage with customers in a more personalized and interactive way, creating a stronger brand presence and driving customer loyalty.

Trends in the market: One major trend in the Canadian Social Media Advertising market is the dominance of mobile advertising. With the widespread adoption of smartphones and the availability of high-speed internet, Canadians are spending more time on their mobile devices. This has led to a shift in advertising budgets towards mobile platforms, including social media apps. Advertisers are leveraging the targeting capabilities of social media platforms to reach consumers on their mobile devices, resulting in increased ad spend and revenue growth in the market. Another trend in the market is the increasing use of influencer marketing. Influencers on social media platforms have gained significant popularity and influence among Canadian consumers. Businesses are partnering with influencers to promote their products or services, leveraging their large and engaged follower base. This form of advertising allows companies to reach a highly targeted audience and build trust with consumers through authentic and relatable content.

Local special circumstances: Canada's bilingualism is a unique factor that influences the Social Media Advertising market. With English and French being the official languages, businesses need to consider language preferences when developing advertising campaigns. This presents an opportunity for companies to tailor their content and messaging to specific language groups, ensuring effective communication and engagement with their target audience.

Underlying macroeconomic factors: The strong and stable economy of Canada is a key driver of the growth in the Social Media Advertising market. With a high standard of living and disposable income, Canadians have the purchasing power to support businesses and their advertising efforts. Additionally, the country's high internet penetration rate and advanced digital infrastructure provide a conducive environment for the growth of social media advertising. In conclusion, the Social Media Advertising market in Canada is experiencing significant growth and development driven by customer preferences for digital platforms, the dominance of mobile advertising, the rise of influencer marketing, and the country's strong economy. Businesses in Canada are recognizing the value of social media advertising in reaching their target audience and are leveraging the unique opportunities and circumstances of the Canadian market to drive growth and success.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on social media advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers social media advertising generated by social networks or business networks such as Facebook, Tiktok, Instragram, Pinterest, and LinkedIn.

Modeling approach:

A combined top-down and bottom-up approach determines the market size. Starting with the top-down approach, we calculate global social media advertising by aggregating revenues from key players (Meta Platforms (Facebook and Instagram), ByteDance (Tiktok and Douyin), Twitter, Snapchat, and Microsoft (LinkedIn)). Followed by the bottom-up approach, we justify global, country, and region results using web traffic and the number of app downloads. Lastly, we distribute the results to each country individually with relevant indicators such as GDP, internet users, social media users, and digital consumer spending by country.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, 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 case market dynamics change.