Market Insights Advertising & Media AR & VR

AR Advertising - Canada

Canada

In Canada, the AR Advertising market is expected to witness significant growth in the coming years.
According to projections, the revenue in this market is estimated to reach US$100.3m in 2024.
This growth is anticipated to continue at a compound annual growth rate (CAGR 2024-2029) of 9.25%, leading to a projected market volume of US$156.1m by 2029.
It is worth noting that in the United States currently dominates the AR Advertising market, generating the majority of the revenue.
In 2024, the projected market volume for the United States is estimated to be US$1,224.0m.
In Canada, the AR Advertising market is rapidly growing, with companies leveraging this technology to create immersive and interactive brand experiences for consumers.

Market

Region

Region comparison

Currency

Analyst Opinion

The AR Advertising market in Canada is experiencing significant growth and development in recent years.

Customer preferences: Customers in Canada are increasingly embracing AR Advertising due to its immersive and interactive nature. AR Advertising allows brands to create engaging and personalized experiences for consumers, which resonates well with the tech-savvy Canadian population. Moreover, AR Advertising offers a unique way for brands to stand out in a crowded advertising landscape and capture the attention of consumers.

Trends in the market: One major trend in the AR Advertising market in Canada is the adoption of AR technology by various industries. Companies in sectors such as retail, automotive, and entertainment are leveraging AR Advertising to enhance customer experiences and drive sales. For example, retailers are using AR technology to allow customers to virtually try on clothes or visualize furniture in their homes before making a purchase. This trend is fueled by advancements in AR technology and the increasing availability of AR-enabled devices, such as smartphones and smart glasses. Another trend in the AR Advertising market is the integration of AR with social media platforms. Social media platforms like Instagram and Snapchat have introduced AR features that allow users to apply filters and effects to their photos and videos. Brands are leveraging these AR capabilities to create interactive and shareable content, thereby increasing brand awareness and engagement. This trend is driven by the popularity of social media among Canadians and the desire for unique and entertaining content.

Local special circumstances: Canada has a highly connected population with widespread access to high-speed internet and advanced mobile networks. This infrastructure enables the seamless delivery of AR Advertising content to consumers across the country. Additionally, Canada has a strong tech industry and a culture that embraces innovation, which creates a favorable environment for the development and adoption of AR Advertising.

Underlying macroeconomic factors: The growth of the AR Advertising market in Canada is also influenced by macroeconomic factors. The Canadian economy has been relatively stable in recent years, which has increased consumer spending power and confidence. This has led to higher advertising budgets for companies, allowing them to invest in innovative advertising strategies such as AR. Furthermore, the increasing competition in the advertising industry has prompted brands to explore new ways to reach and engage consumers, leading to the adoption of AR Advertising. In conclusion, the AR Advertising market in Canada is experiencing significant growth and development due to customer preferences for immersive and interactive experiences, trends such as the adoption of AR technology by various industries and the integration of AR with social media platforms, local special circumstances such as a highly connected population and a strong tech industry, and underlying macroeconomic factors such as stable economic conditions and increased advertising budgets.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on AR advertising revenue, which includes pop-up advertising displayed in social media apps, gaming apps, and eCommerce apps as well as advertising that is integrated into the virtual world.

Modeling approach / market size:

The market size is determined through a top-down approach. We use annual financial reports of the market-leading companies and industry associations, as well as third-party studies and reports to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as consumer spending, internet penetration, 4G coverage, and historical developments.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are level of digitalization, adoption of technology, GDP per capita, and internet penetration.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. 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).