canada internet-users and usage 2011
DESCRIPTION
In many respects, Canada is an online powerhouse.According to recent data, it has a higherproportion of the population online than the United States. In broadband penetration and affordability, it rivals the USand many other developed countries.Young Canadians are avid, experienced online users. Internet access in theworkplace is beginning to catch up with healthy rates of household connection. Canadian consumers spend above-average time online and count themselves among the world’s keenest bloggers.TRANSCRIPT
Executive Summary: In many respects, Canada is an online powerhouse.According to recent data, it has a higher
proportion of the population online than the United States. In broadband penetration and affordability, it rivals the US
and many other developed countries.Young Canadians are avid, experienced online users. Internet access in the
workplace is beginning to catch up with healthy rates of household connection. Canadian consumers spend above-
average time online and count themselves among the world’s keenest bloggers.
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But this picture obscures significant variations between
younger and older Internet users and between regions.
E-commerce, for example, has been slow to take off in the
absence of retailers and online offerings that genuinely
address Canadian tastes and requirements. Canada’s mobile
networks and operators are not as well prepared as they
should be to supply reliable data services at competitive
prices.These and other social, technical and commercial
obstacles threaten to hold Canada back when the country
should be setting online standards for North America and
the rest of the world.
Issues & Questions
■ How do Canada’s rates of Internet access and broadband
penetration compare with those of the US and other countries?
■ What are the most popular online activities of Canadian
Internet users?
■ What major differences exist between online habits in the
English- and French-speaking parts of the country?
■ What trends are emerging in Canadian e-commerce and
mobile Internet use?
Canada Internet:Users and Usage
September 2007
Karin von Abrams,
Senior Analyst
Internet Users and Penetration in North America, byCountry, 2005-2011 (millions and % of population)
2005 2006 2007 2008 2009 2010 2011
US 175.4 181.9 188.1 193.9 200.1 206.2 211.3
% of population 61.9% 63.6% 65.2% 66.6% 68.1% 69.6% 70.6%
Canada 20.0 21.0 21.8 22.6 23.3 24.1 24.8
% of population 61.0% 63.4% 65.3% 67.1% 68.5% 70.3% 71.9%
Note: eMarketer uses historical data from the InternationalTelecommunication Union (ITU) as a baseline; penetration figures are basedon population estimates from the US Census Bureau's International DataBase (IDB); an Internet user is defined as someone who uses the Internetat least once per monthSource: eMarketer, January 29, 2007
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The First Place to Look Copyright ©2007 eMarketer, Inc. All rights reserved.
The eMarketer View 2
The Economy 3
Internet Access 3
Broadband Penetration 5
The Online Audience 8
What Canadians Do Online 11
Conclusion 24
Related Information and Links 25
About eMarketer 25
Canada Internet 2
The eMarketer View
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Canada is something of a conundrum where the Web is
concerned.The country embraced home Internet access and
broadband quite early. Large numbers of the online population
have taken to online banking, blogging and social networking.
Most school age Canadians—even very young ones—have been
well acquainted with the Internet for years.
But Canada has not followed the pattern of leading wired countries
in other ways. Historically, workplace access to the Internet has not
been nearly as common as home access in Canada, although the
gap is shrinking. Large parts of the country are not well served by
Internet connections.The French-speaking province of Quebec still
trails other regions in access and Internet use.
Despite, or perhaps because of, Canada’s proximity to the US,
e-commerce remains somewhat underdeveloped.
Business-to-business (B2B) sales are solid and growing.According
to eMarketer and other sources, over one-half of online Canadians
bought a product or service on the Internet in 2006. Until recently,
however, consumers found relatively little to attract them to
online stores.
For a start, almost no American brand retailers bothered to
understand the niceties of the Canadian market. Instead, they
expected people in Canada to accept the drawbacks of Web sites,
prices and delivery advice determined by US norms and trade
regulations. Canadians often could not tell what the final price of a
purchase would be or how long delivery might take.
Meanwhile, many Canada-based retailers hung back from
developing online retail operations, thinking they could wait until
others had established the market and got the ball rolling.
These two circumstances combined to leave Canada’s consumer
e-commerce in the doldrums for some time.
But the scene is changing as US-based stores look to Canada to
help bolster sales and profits when demand at home is declining.
Canadian retailers also realize there is a valuable market to play
for, with a good deal of pent-up demand.
It will take at least a year for Canada’s online marketplace to offer
the value and variety online consumers enjoy in the US, the United
Kingdom and many other countries.
The mobile sphere is another area where Canada ought to excel
but appears to be falling behind. Mobile operators are hard
pressed to find the cash to invest in larger and better networks, a
key challenge considering Canada’s size.
Operators have traditionally levied hefty fees for data downloads
compared with charges in most other countries.While the
government, operators, consumers and mobile phone makers are
trying to solve these issues, progress appears slow and difficult.
Key eMarketer Numbers — Canada Internet Usersand Usage
24.8 million Internet users in Canada in 2011, up from 21.0million in 2006
10.3 million Broadband households in Canada in 2011, upfrom 7.4 million in 2006
93.6% Broadband households as a percent of totalonline households in 2011, up from 87.1% in2006
63.0% Percent of Internet users in Canada who willpurchase online in 2009, up from 53.3% in 2006
C$1,438(US$1,295)
Average annual online spending* per Internetuser in Canada in 2009, up from C$1,007(US$891) in 2006
Note: Converted to US$ at average annual exchange rates (projected forfuture years); *includes spending on online travel, event tickets anddigital downloadsSource: eMarketer, 2006 & 2007
Canada Internet 3
The Economy
In terms of gross domestic product (GDP),
Canada had the world’s eighth-largest economy
in 2006, according to the International Monetary
Fund’s World Economic Outlook Database as of
April 2007.
The country’s economic outlook in the medium term is strong.
Growth in real GDP is projected to average 2.6% per year through
2011 by the Economist Intelligence Unit (EIU).
The average exchange rate in 2006 was C$1.13 to US$1.00.The EIU
projects that the rate will average C$1.09 to US$1 in 2007, falling to
C$1.23 to US$1.00 by 2011.
Internet Access
Canada’s population was 33.4 million in July 2007,
according to the US Census Bureau.This total is
expected to rise by about 300,000 annually and
reach 34.8 million by 2012.
Where the Internet is concerned, Canada is one of the world’s
best-connected countries. eMarketer estimates that almost two-
thirds of Canadians used the Internet at least once a month in
2006, roughly the same proportion as in the US and Australia and
at least five percentage points more than in the UK. Only Japan
and South Korea could boast substantially higher rates of Internet
use that year.
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Internet Users and Penetration in Select CountriesWorldwide, 2006 (millions and % of population)
Internet users
Penetration
US 181.9 63.6%
China 133.5 10.2%
Japan 87.2 68.4%
Germany 39.4 47.8%
UK 35.1 57.9%
South Korea 34.4 70.5%
France 28.7 47.1%
Italy 28.6 49.2%
India 25.5 2.3%
Brazil 21.2 11.3%
Canada 21.0 63.4%
Mexico 20.0 18.6%
Spain 16.5 40.8%
Australia 13.1 64.5%
Argentina 7.9 19.8%
Rest of World 368.0 13.2%
Worldwide 1,080.0 16.6%
Note: eMarketer uses historical data from the InternationalTelecommunication Union (ITU) as a baseline; penetration figures are basedon population estimates from the US Census Bureau's International DataBase (IDB); an Internet user is defined as someone who uses the Internetat least once per monthSource: eMarketer, January 2007
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Canada Internet 4
Internet Access
eMarketer estimates that Internet penetration in Canada will
continue to rise steadily from 2007 through 2011, at between 1.4
and 1.8 percentage points per year.
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Although the overall numbers are relatively small, Canada
continues to post a high rate of online population growth, with
11% more Internet users in January 2007 than the year before,
according to comScore World Metrix.This double-digit growth is
unique among the developed countries where the Internet is
firmly established.
By contrast, the US online population is thought to have grown just
2% between January 2006 and January 2007.The Internet
populations of France and Germany appear to have gained less
than 5% during the same period, even though proportional
Internet penetration in these countries is lower than in Canada.
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In March 2007, the International Telecommunications Union (ITU)
put the number of Canadian Internet users even higher at 22
million, or 67.8% of the population. More recent comScore figures
indicate that user numbers rose 14% between June 2006 and June
2007 to reach 23.09 million.
A number of research firms and institutions concur: Internet use
is already strong in Canada, and the Canadians who are not
already online are joining at a rate more often seen in less
developed countries.
The annual “Broadcasting Policy Monitoring Report” by the
Canadian Radio-television and Telecommunications Commission
(CRTC), released in mid-2007, also paints a bright picture.
According to the CRTC, 70% of households in Canada subscribed
to the Internet in 2006, a 6% rise over the previous year.
Internet Users and Penetration in Canada, 2005-2011(millions and % of population)
2005 20.0 (61.0%)
2006 21.0 (63.4%)
2007 21.8 (65.3%)
2008 22.6 (67.1%)
2009 23.3 (68.5%)
2010 24.1 (70.3%)
2011 24.8 (71.9%)
Note: eMarketer uses historical data from the InternationalTelecommunication Union (ITU) as a baseline; penetration figures are basedon population estimates from the US Census Bureau's International DataBase (IDB); an Internet user is defined as someone who uses the Internetat least once per monthSource: eMarketer, January 29, 2007
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Top 15 Countries Worldwide, Ranked by InternetUsers, January 2006 & January 2007 (thousands ofunique visitors and % change)
January 2006
January 2007
% change
1. US 150,897 153,447 2%
2. China 72,408 86,757 20%
3. Japan 51,450 53,670 4%
4. Germany 31,209 32,192 3%
5. UK 29,773 30,072 1%
6. South Korea 24,297 26,350 8%
7. France 23,712 24,560 4%
8. India 15,867 21,107 33%
9. Canada 18,332 20,392 11%
10. Italy 15,987 18,106 13%
11. Brazil 12,845 14,964 16%
12. Spain 12,206 12,710 4%
13. Russia 10,471 12,707 21%
14. Netherlands 10,772 11,077 3%
15. Mexico 8,624 10,149 18%
Total Worldwide 676,878 746,934 10%
Note: ages 15+; home, work and university locations; excludes traffic frompublic computers (eg Internet cafes) and access from mobile phones orPDAsSource: comScore World Metrix as cited in press release, March 6, 2007
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Canada Internet 5
Internet Access
Canadians have always accessed the Internet far more at home
than at work. In 2005, for example, roughly 61% of the total
population age 18 and older was online at home, according to
Statistics Canada. Only an additional 7% of respondents said they
went online from other locations such as school, work, libraries
and Internet cafes.
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Internet access at work has risen as more businesses move online
to improve communications and efficiency. By 2006, 45% of the
online population was using an Internet connection at work,
compared to 38% three years earlier, according to the “Ipsos
Canadian Inter@ctive Reid Report.”
comScore Media Metrix recently compared home and work
Internet use in the second quarter of 2007. Its figures suggest that
almost 22 million Canadians were accessing the Web from home,
and 8.2 million had access from work only.
The average number of unique visitors accessing the Internet
from work increased 15% between the second quarter of 2006
and the second quarter of 2007, whereas the average number of
visitors using home access rose 10%, according to comScore.
Broadband Penetration
By any standard, Canada is well served by
broadband technology. Figures from Ipsos Insight
indicate that more than seven in 10 active
Canadian Internet users had a high-speed
connection in the last two months of 2006.This
figure mirrored the level of broadband access in
the US, although Canada had a lower percentage
of its population using a dial-up connection.
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The number of dial-up connections continues to fall steadily.
eMarketer calculates that by the end of 2007, at least 88% of all
Canadians who go online will use a broadband connection.This
number will rise to 95% in 2011.
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Demographic Profile of Adult Internet Users inCanada, by Access Location, 2005 (% of respondentsin each group)
Home Total*
Gender
Male 61.5% 68.0%
Female 60.3% 67.8%
Age
18-34 77.3% 88.9%
35-54 68.3% 75.0%
55-64 49.3% 53.8%
65+ 22.5% 23.8%
Education
Less than high school 26.5% 31.2%
High school or college 63.9% 72.0%
University degree 83.4% 89.4%
Income
<C$13,000 52.3% 58.7%
C$13,001-C$26,999 50.2% 56.9%
C$27,000-C$45,999 63.4% 71.3%
C$46,000+ 77.7% 83.2%
Total 60.9% 67.9%
Note: *home, school, work, public library or other; excludes residents ofthe Yukon, Northwest and Nanuet Territories, inmates of institutions,persons living on Indian Reserves and full-time members of the CanadianArmed ForcesSource: Statistics Canada,"Canadian Internet Use Survey (CIUS)," August15, 2006
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Active* Internet Users in Select Countries Worldwide,by Primary Access Technology, November-December2006 (% of respondents)
High-speed Dial-up Wireless access/service
Other or don't know
Brazil** 46% 43% 6% 5%
Canada 71% 16% 6% 7%
China** 79% 15% 4% 2%
France 70% 25% 3% 2%
Germany 84% 10% - 6%
India** 40% 46% 11% 3%
Japan 89% 11% - -
Mexico** 34% 44% 6% 16%
Russia** 26% 52% 18% 4%
South Korea 80% 4% 7% 9%
UK 57% 15% 9% 19%
US 71% 19% 6% 4%
Note: *in the past month; **urban sampleSource: Ipsos Insight, "The Face of the Web 2006," April 18, 2007
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Broadband vs. Dial-Up Internet Users in Canada,2005-2011 (millions)
2005 2006 2007 2008 2009 2010 2011
Dial-up 3.8 2.9 2.5 2.1 1.6 1.3 1.2
Broadband 16.2 18.1 19.3 20.5 21.7 22.8 23.6
Total 20.0 21.0 21.8 22.6 23.3 24.1 24.8
Note: eMarketer defines an Internet user as a person ages 3+ whoaccesses the Internet at least once per month; broadband includes ADSL,cable, satellite, fixed wireless, fiber, powerline, WiMAX and emergingbroadband technologies accessed at homeSource: eMarketer, January 12, 2007
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Canada Internet 6
Broadband Penetration
The “Global Entertainment and Media Outlook: 2007-2011” report,
published by PricewaterhouseCoopers (PwC) in collaboration with
Wilkofsky Gruen Associates (WGA), defines the access market in
subscriptions (that is, as households, since a household typically
has one Internet subscription shared by all who live there).
PwC suggests that broadband subscriptions will continue to grow
at double-digit rates during 2007 and 2008.According to these
data, broadband should pass the 70% penetration milestone by the
end of 2008 and dominate the Canadian market completely by
2011. PwC projects that 85% of all households will have high-speed
access in 2011, leaving just 600,000 dial-up households.
Figures on broadband penetration released by the Organization for
Economic Cooperation and Development (OECD) place Canada in
ninth position among the countries it covers, based on the
percentages of subscribers using DSL, cable and other high-speed
connections.This placing is well ahead of the US and even Japan but
significantly behind South Korea and several European countries.083357
Since these figures were issued, the methodology used by the
OECD—which focuses purely on the adoption rate of broadband
connections—has sparked debate about what criteria should be
used to determine the rankings and what they aim to demonstrate.
The Information Technology and Innovation Foundation (ITIF) has
argued that “a more complete measure would also consider
speed and price. Increasingly, in the digital economy it is the speed
and capacity of the network that matters.”The OECD tracks cost
and speed of connections but does not include them in its overall
broadband rankings.The number of subscribers per household is
also relevant.
Broadband Subscriber Penetration in OECD Countries,by Access Technology, December 2006 (% ofpopulation)
DSL Cable Other Total
Denmark 19.6% 9.4% 0.4% 31.9%
Netherlands 19.5% 12.0% 0.0% 31.8%
Iceland 28.8% 0.0% 0.6% 29.7%
South Korea 11.4% 10.7% 0.0% 29.1%
Switzerland 18.8% 8.8% 0.9% 28.5%
Norway 21.7% 3.8% 0.6% 27.7%
Finland 23.5% 3.5% 0.3% 27.2%
Sweden 16.0% 5.2% 4.8% 26.0%
Canada 11.4% 12.3% 0.1% 23.8%
Belgium 14.0% 8.4% 0.1% 22.5%
UK 16.5% 5.1% 0.0% 21.6%
Luxembourg 18.2% 2.2% 0.0% 20.4%
France 19.1% 1.1% 0.0% 20.3%
Japan 11.1% 2.8% 0.0% 20.2%
US 8.5% 10.3% 0.6% 19.6%
Australia 15.0% 3.3% 1.0% 19.2%
Austria 10.6% 6.4% 0.3% 17.3%
Germany 16.4% 0.5% 0.1% 17.1%
Spain 12.1% 3.1% 0.1% 15.3%
Italy 13.8% 0.0% 0.6% 14.8%
New Zealand 12.7% 0.6% 0.7% 14.0%
Portugal 8.7% 5.1% 0.0% 13.8%
Ireland 9.1% 1.3% 2.0% 12.5%
Hungary 6.1% 3.8% 2.0% 11.9%
Czech Republic 4.8% 2.1% 3.7% 10.6%
Poland 5.2% 1.6% 0.1% 6.9%
Slovak Republic 3.4% 0.7% 0.2% 5.1%
Greece 4.4% 0.0% 0.2% 4.6%
Turkey 3.8% 0.0% 0.0% 3.8%
Mexico 2.7% 0.8% 0.0% 3.5%
OECD 10.5% 4.9% 0.3% 16.9%
Source: OECD, April 23, 2007
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Canada Internet 7
Broadband Penetration
The ITIF’s revised rankings give a far more rounded picture of how
well each country is served by broadband offerings. Note that
Japan leaps into second place here, chiefly because of its high-
speed connections and price per bit (the lowest in the world).
Canada slips one place, to 10th, thanks to a solid but not
outstanding performance in all categories.
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This analysis strengthens the conclusion that Canada enjoys a
healthier broadband situation than the US. Prices are higher in
Canada, but in the US both average speed and number of
subscribers per household are below Canadian levels, thus the
country as a whole is less efficient in broadband terms.
A less obvious sign that Canada is better served by broadband than
the US is the age of people using it. Figures published in 2007 by
Google Canada and Media-Screen indicate that overall Canadian
broadband consumers tend to be younger than those in the US.
The study found that 15% of broadband users in Canada were
18- to 24-years-old. But in the US just 9% of broadband users fall
into this age group, as the majority of users are older members of
the working population.That is good for the current state of the
nation in many ways but less good for the future.
As younger people complete their education and enter the
economy, high-speed access to online resources will be crucial to
their success. For now at least, young Canadians are more likely to
benefit from those resources.
eMarketer anticipates that Canada will continue to outperform the
US in overall broadband penetration through 2011 and beyond.
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Moreover, PwC predicts that fees for broadband in Canada will
stay low in real terms compared to those in other countries. PwC
estimated that the average broadband subscription in Canada in
2006 costs just US$16.75 (C$18.93) per month, one of the lowest
rates in the world.
Moreover, these researchers anticipate that Canadian broadband
costs will show a compound annual growth rate of just 0.2% in US
dollars for the five years beginning in 2006, resulting in a projected
average cost of only US$16.92 (C$20.81) per month in 2011.This
rate of increase will make broadband progressively more
affordable for Canadians and encourage further uptake.
Top 20 OECD (1) Countries, Ranked by BroadbandMetrics, 2006
Subscribers per
household (2)
Average speed
(Mbps) (3)
Price per
month (4)
Overall score (5)
1. South Korea 0.90 45.6 $0.45 15.73
2. Japan 0.52 61.0 $0.27 14.99
3. Iceland 0.83 6.0 $4.99 12.14
4. Finland 0.57 21.7 $2.77 12.11
5. Netherlands 0.73 8.8 $4.31 11.87
6. Sweden 0.49 18.2 $0.63 11.54
7. France 0.49 17.6 $1.64 11.41
8. Denmark 0.70 4.6 $4.92 11.37
9. Norway 0.64 7.4 $4.04 11.29
10. Canada 0.62 7.6 $6.50 11.11
11. Belgium 0.54 6.2 $6.69 10.60
12. US 0.51 4.8 $3.33 10.47
13. Switzerland 0.68 2.3 $21.71 10.40
14. Australia 0.50 1.7 $2.39 10.23
15. Austria 0.42 7.3 $5.99 10.08
16. Portugal 0.42 8.1 $10.99 9.92
17. UK 0.50 2.6 $11.02 9.92
18. Germany 0.38 6.0 $5.20 9.81
19. Italy 0.38 4.2 $3.36 9.78
20. Luxembourg 0.51 3.1 $18.48 9.71
Note: (1) Organization for Economic Cooperation and Development; (2)OECD measures penetration on a per capita basis because comprehensivedata on household penetration is generally unavailable; ITIF has usedaverage household size as a multiplier to convert OECD per capitapenetration data to household penetration data; it should be noted thatone problem with this method is that the OECD data likely also includessome DSL business subscribers; (3) methodology for calculating broadbandspeed involves averaging the speeds of the incumbent DSL, cable and fiberofferings provided in OECD's April 2006 "Multiple Play" report, with eachassigned a weight according to that technology's respective percentage ofthe nation's overall broadband subscribership, as reported in OECD's"Broadband Statistics to December 2006;" for nations that did not have alisted fiber speed in the "Multiple Play" report but had fiber subscribers, aspeed of 10 Mpbs was assigned; (4) price per month for 1 Mbps usingfastest technology (US$ PPP); (5) each nation's overall score is the sum ofits standard deviation score for each of the three indicatorsSource: The Information Technology & Innovation Foundation (ITIF) report,"Assessing Broadband in America: OECD and ITIF Broadband Rankings,"April 2007
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Broadband Households and Penetration in NorthAmerica, by Country, 2005-2011 (millions and % oftotal households)
2005 2006 2007 2008 2009 2010 2011
US 43.9 54.6 65.0 74.1 81.1 86.2 89.9
% of total households 37.6% 45.9% 53.6% 60.1% 64.6% 67.6% 69.3%
Canada 6.4 7.4 8.1 8.7 9.3 9.8 10.3
% of total households 50.5% 58.0% 62.6% 66.7% 70.4% 73.8% 76.7%
Note: eMarketer defines "broadband" as an Internet connection of 200kbps in at least one direction; includes ADSL, cable, satellite, fixed wireless,fiber, powerline, WiMAX and emerging broadband technologies accessedat homeSource: eMarketer, March 12, 2007
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Canada Internet 8
The Online Audience
eMarketer has calculated that Canada’s Internet
population passed 21 million at the end of 2006
and that roughly two-thirds of Canadians are now
online.Within certain age and income groups,
that proportion is far higher.
In fact, the Internet found many early adopters in Canada. In 2001,
82% of Canadian adults age 18 to 54 already had access to the
Internet, according to Ipsos Reid. By 2006, nearly nine in 10 of the
same age group had access.
During the same period, uptake among Canadians 55 and older
rose more dramatically, although the proportion of older people
online is still much lower overall.
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This has important implications for Canada’s Internet use and
online economy in the longer term. Statistics Canada calculated
that the number of Canadians 55 and older will double between
2005 and 2025.
In particular, the 59-to-64 age group is the fastest-growing
demographic, so there are clear opportunities for providers of
goods and services to an older population. Many of these older
Canadians enjoy a relatively high standard of living and value the
opportunity to save time and effort when shopping or booking
travel, for example.
If the digital divide is not bridged, however, many older citizens will
be put at a disadvantage. Government services will not be
delivered effectively to those unable to access online resources
and information.The benefits of e-commerce and other online
facilities will also bypass older people if they cannot be helped to
use the Internet with confidence.
A large majority of Canadians under 18 are also online and have
been for some time.The “Young Canadians in a Wired World”
study, carried out by the Media Awareness Network, which
canvassed more than 5,200 young people in grades 4 to 11 in
French and English language schools across the country, found
that Internet access in this group was “almost universal” as long
ago as 2005.
In that year, 94% of young people said they went online from
home, and 61% said they had high-speed access. Just over
one-half of grade 11 students said they were able to access the
Internet through their personal computer.
Internet uptake does vary substantially from one part of Canada to
another.The relatively low level of Internet use in Quebec has
been an issue for some years. Many analysts have concluded that
the language barrier is to blame, but other regional characteristics
may play a part as well.
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Some observers have suggested that the province is risk averse,
adopting a wait-and-see attitude to new technology until it is proved
elsewhere.Also, Quebec seems to have different cultural priorities.
Monique Charbonneau, president of the Centre francophone
d’informatisation des organizations (CEFRIO), a consortium that
encourages the use of IT in Canada’s French-speaking areas, was
quoted in The Montreal Gazette in February 2007 as saying, “We
take risks here more in the cultural spheres. Look at Cirque du
Soleil and Quebec cinema.We excel at those. Science and
technology aren’t as important here as they are in the Anglo-
Saxon societies.”
Whatever the reasons for Quebec’s slow start online, the province
is beginning to catch up with the rest of the country.
Adults in Canada with Internet Access, by Age, 2001 &2006 (% of respondents in each group)
2001
82%
48%
2006
88%
61%
18-54 55+
Note: from any locationSource: Ipsos Reid, "Older Canadians and the Internet" as cited in pressrelease, February 15, 2007
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Adult Internet Users in Canada Who Go Online AtLeast Once a Week, by Province, 2006 (% ofrespondents)
British Columbia 66%
Alberta 65%
Ontario 63%
Manitoba/Saskatchewan 55%
Atlantic 53%
Quebec 49%
Note: ages 16+Source: BBM Analytics, "CyberTRENDS," December 2006 as cited byCanadian Radio-television and Telecommunications Commission (CRTC),"Broadcasting Policy Monitoring Report 2007," December 2006
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Canada Internet 9
The Online Audience
According to the ITU, overall Canadian Internet penetration in
December 2006 was 67.8%.This is not far from the 65.8% of adults
in Quebec who used the Internet regularly in 2006, according to
the “NETendances 2006” report published by CEFRIO in
collaboration with Léger Marketing.The percentage of Quebecers
going online rose to 71.5% in November 2006 and 72.3% in June
2007, according to CEFRIO.
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Among those polled for the study, 76% had a computer at home,
and more than 19% planned to get a new one during the coming
year.Two-thirds (67%) of Quebec adults said they had an Internet
connection at home in 2006, and 86% of these adults subscribed
to a high-speed service, according to CEFRIO. High-speed cable
connections were used by 32% of Quebecers in 2006, up from
25% in 2005.
Quebec does not buck all the trends, however.
Some common demographic patterns mirror those in the rest of
Canada. For example, Internet access is highest among young
people. Of Quebecers age 18 to 24, 97% go online. Further, Internet
use is correlated with household income.Almost nine in 10
households in Quebec with an annual income over C$60,000
(US$55,045) are connected, and homes with less than C$20,000
(US$18,350) per year have a connection rate of about 40%.
Despite regional variations, there is no question that, as a country,
Canadians have taken to the Internet in a big way.
comScore World Metrix recently calculated that Canada leads the
world in the average amount of time spent online each month by
unique Internet users. Broadband users in particular appeared to
be the only national group in the world clocking up more than 40
hours a month on average.
081596
Not surprisingly, it is the audience under 55 that spends more time
online, according to Ipsos Reid.This gap has not diminished
significantly since 2001.
081098
Active* Adult Internet Users in Quebec, by Month,2006 (% of population)
January 64.3%
February 63.9%
March 64.8%
April 63.9%
May 68.4%
June 64.8%
July 62.4%
August 65.2%
September 64.4%
October 67.3%
November 71.5%
December 68.4%
Note: n=1,000 adult residents of Quebec chosen and polled each month;*have used the Internet at least once during the previous weekSource: Centre francophone d'informatisation des organizations (CEFRIO),"NETendances 2006," conducted by CEFRIO and Léger Marketing, February2007
086481 www.eMarketer.com
Top 10 Countries Worldwide, Ranked by AverageMonthly Hours Online per Unique Visitor, by AccessTechnology, January 2007
Broadband users
Narrowband users
Total users
1. Canada 41.3 14.2 39.6
2. Israel 38.8 10.9 37.4
3. South Korea 36.1 na* 34.0
4. US 37.2 13.5 31.6
5. UK 35.6 7.5 31.2
6. Chile 38.6 12.6 30.9
7. Brazil 38.5 17.0 30.2
8. Finland 34.2 na* 28.7
9. Spain 33.4 9.1 27.9
10. Sweden 31.4 9.7 27.5
Note: ages 15+; home, work and university locations; excludes traffic frompublic computers (eg Internet cafes) and access from mobile phones orPDAs; *level of narrowband penetration is very low therefore an accuratereportable estimate is not availableSource: comScore World Metrix as cited in press release, March 6, 2007
081596 www.eMarketer.com
Weekly Time Spent Online by Adult Internet Users inCanada, by Age, October 2006 (hours)
18-54 13.3
55+ 8.7
Source: Ipsos Reid, "Older Canadians and the Internet" as cited in pressrelease, February 15, 2007
081098 www.eMarketer.com
Canada Internet 10
The Online Audience
In some ways, the older generation is holding its own.A study by the
insurance group AXA found that Canadian retirees were second
only to those in the US in hours spent online each week in 2006.
080904
Another recent Ipsos Reid survey probed the issue of whether
adults in Canada thought their skill levels were up to the challenge
of the Internet and whether they were keeping up with
technological change. Some results were encouraging.
For example, three-quarters of Canadian adults said they were
“fairly” or “very” skilled at using the Internet.The remaining 25%
thought they could be described as “not very” or “not at all” skilled.
Generally, older online Canadians confessed they felt less
experienced and adept at Internet skills. Only 13% of respondents
55 and older claimed to be “expert” or “very skilled,” compared
with 35% of 18- to 54-year-olds.
But all adults acknowledged that it was hard to stay on top
of change.
Less than one in 10 thought they were “significantly ahead of the
curve” as technology evolved around them. More than one-third
said they had to work to keep up, and a similar percentage said
they were just managing not to fall behind.Almost one in five said
there was a significant gap between their knowledge and the pace
of change.
081921
Average Number Hours per Week Spent Online byRetired Adults in Select Countries Worldwide, 2006
US 9
Australia 7
Canada 7
UK 6
New Zealand 6
China 5
France 5
Germany 4
Japan 3
Italy 2
Spain 2
Note: includes people under the age of 75 who are retired or in earlyretirementSource: AXA Group, "Global Retirement Scope 2007 Retirement, a new lifeafter work?," January 1, 2007
080904 www.eMarketer.com
Ability of Adult Consumers in Canada to Keep Pacewith Technology Change, January 2007 (% ofrespondents)
Significantly ahead of the curve 8%
Ahead of the game but have to work to keep up 36%
Barely keeping up to speed 34%
Falling significantly behind 19%
Note: n=1,000Source: Ipsos Reid, "Canadian Inter@ctive Reid Report" as cited in pressrelease, March 14, 2007
081921 www.eMarketer.com
Canada Internet 11
What Canadians Do Online
E-mail remains one of the most popular online
activities in Canada.
The “CyberTRENDS” report, published by BBM Analytics, claims
that, as of December 2006, 90% of Internet users in Canada were
sending or receiving e-mail.
In the same month, more than three-quarters of Canadians online
researched products and services, 80% visited sites of interest
and 86% searched for specific information.According to the
report, Canadian Internet users spent on average about 54% of
total online time visiting Canadian sites.
An Ipsos Reid survey carried out in the third quarter of 2006 also
points to the variety of ways Canadians use the Internet.This
survey did not gather data about e-mail use (perhaps because
e-mail is taken for granted). Many of the activities that users were
asked about did not figure in the “CyberTRENDS” survey.
For this reason, the two surveys do not offer much mutual
corroboration.Taken together, however, they appear to confirm
that Canadians are transferring personal and family activities
online to an extraordinary degree.
More than one-half of the Ipsos Reid respondents said they
comparison-shopped online, bought goods and services, explored
courses or looked for real estate. Many listened to the radio,
downloaded music, uploaded photos or played games.At least
three in five had researched travel online or carried out banking
transactions, the two most popular activities in this sample.
084678
Online Activities of Internet Users in Canada, Q3 2006(% of respondents)
Online banking transactions
62%
Researched trip online
60%
Comparison shopped
52%
Searched for/viewed real estate
51%
Purchased a product or service directly online
50%
Researched courses, schools, degrees or diplomas
50%
Listened to Internet radio
48%
Used the Internet at work for personal reasons
43%
Used online photo service
42%
Purchased element of travel online
41%
Downloaded MP3 file for free
40%
Visited a blog
36%
Visited home for sale first found online
33%
Played poker online for fun
17%
Downloaded MP3 file for a fee
16%
Taken a course directly online
15%
Bought/sold investments
14%
Earned a degree/diploma/certificate online
4%
Played poker online for money
3%
Placed a sports wager online for money
2%
Note: n=888 adults with Internet accessSource: Ipsos Reid, "The 2006 Canadian Inter@ctive Reid Report" FactGuide, March 2007
084678 www.eMarketer.com
Canada Internet 12
What Canadians Do Online
Among Quebecers, too,banking operations were the most popular
Internet transactions. In July 2006,38.1% made such transactions
online,up from 35.7% in July 2005,according to CEFRIO. (Note,
however, that this is still a far cry from the 62% of the overall Canadian
online population who banked online in the third quarter of 2006.)
It must be said that older Canadians are not involved in many of
these activities to the same degree as younger people. In fact, they
lag behind younger Internet users in almost all cases. Just 21% of
Canadian Internet users 55 and older have participated in online
banking, and 34% have listened to radio online.
A similar number (32%) have downloaded free MP3 files, and 17%
used the Internet to research travel, the same proportion who
went online at work for personal reasons. Less than one-quarter
(23%) said they had visited blog sites, and a mere 14% had bought
something online.
On the other hand, Canadians 55 and older are actually more likely
to participate in some activities than the younger online population.
These activities include taking courses online (the participation rate
of older users is 3% higher), buying or selling investments (also 3%
higher) and earning a degree or diploma online (4% higher).
Only 20% of Internet users 55 and older said they comparison-shopped
online.Another study,however,suggest that, in the wider population of
Internet users,more than one-half are comparison-shopping.
Further, more than one-half of Canadians age 30 and older polled
in December 2006 said they used the Internet at least once a week
to search for products, services, jobs or community information.
Almost three-quarters said they performed these kinds of
searches at least once a month.
080139
A report by Google Canada and Media-Screen has yielded an even
more striking statistic: 98% of Canadians now search the Internet
looking to purchase products and services.This kind of search is
part of roughly five hours that Canadians spend on the Internet
during a typical five-day week, Monday to Friday.
This online poll surveyed 1,002 adults age 18 and older.All
respondents were required to have a broadband connection and
to have researched or purchased a product or service online, both
of which criteria may have a bearing on the results.
The Web’s role as a source of information about users’ local
facilities and services is growing, too.The Léger Marketing report
cited earlier found that a large number of Canadians turn to the
Internet even for information that might be available from local
newspapers, radio stations or other offline sources close to hand.
080140
As with online banking, most activities are less popular among
French-speaking residents than in Canada as a whole. For
example, e-mail is one of the most popular online activities in
Quebec, but the percentage of the online population using e-mail
was just 60% at the end of 2006, one-third less than in the wider
Canadian population.
086492
Minimum Frequency with which Adult Internet Usersin Canada Use the Internet to Search for Products toPurchase, Services, Jobs or Community Information,December 2006 (% of respondents)
Weekly 54%
Monthly 73%
Note: n=1,000 ages 30+Source: Léger Marketing commissioned by Kijiji Canada, January 16, 2007
080139 www.eMarketer.com
Adult Internet Users in Canada Who Use the Internetto Search for Local Services or View CommunityPostings and Events, December 2006 (% ofrespondents)
Search for local services 69%
View community postings and events 54%
Note: n=1,000 ages 30+Source: Léger Marketing commissioned by Kijiji Canada, January 16, 2007
080140 www.eMarketer.com
Select Online Activities of Adult Internet Users inQuebec, March, June & December 2006 (% ofrespondents)
Used e-mail to get in touch with parents or friends
58.2%
60.5%
60.3%
Participated in a chat room
27.4%
27.7%
30.2%
Listened to or downloaded music
20.5%
19.1%
25.8%
Played games
13.4%
14.1%
16.0%
Watched or downloaded videos
12.9%
11.7%
15.8%
March 2006 June 2006 December 2006
Note: n=1,000 adult residents of Quebec chosen and polled each monthSource: Centre francophone d'informatisation des organizations (CEFRIO),"NETendances 2006," conducted by CEFRIO and Léger Marketing, February2007
086492 www.eMarketer.com
Canada Internet 13
What Canadians Do Online
Quebecers spent 6.1 hours online each week for personal reasons
in June 2006, according to CEFRIO. News and information sites
were among the most popular destinations, with 35.2% of surfers
visiting them regularly.
In May 2006, 39.1% of Quebec residents said they planned to go
online to arrange travel, compared with 60% of Canadians overall
in the third quarter of 2006, according to Ipsos Reid.
The increasing usefulness of the Internet in so many areas means
that large numbers of Canadians can hardly imagine life without it.
More than one-third of adults polled in January 2007 said going
online was “an important part of their daily routine.”About one-
quarter believed that if they did not learn more about the Internet
they would be “left behind” as the effect of the online channel
grows in the world around them.
081925
As life online becomes second nature to most Canadians, Internet
use is increasingly overlapping with other activities.
Multitasking online is especially prevalent among English-
speaking Canadian tweens, more than one-third of whom
frequently watch TV—or have the TV on—while they surf.
One-quarter listen to music while they are online. Only two in
five of these 7- to 12-year-olds do not combine Internet use with
other tasks or leisure activities, according to the Solutions
Research Group.
081294
In fact, Canadians of all ages are now multitasking in similar ways,
according to BBM Analytics. Listening to the radio while online is
especially popular.
086493
Multitasking Activities of Tweens in English-SpeakingCanada While Using the Internet, September 2006 (%of respondents)
Watching TV 34%
Music (not radio) 25%
Gaming 18%
Using a phone 10%
Reading 7%
Radio 3%
Other 1%
None 41%
Note: ages 7-12 who use the Internet; days from 6 am-11 pmSource: Solutions Research Group, "Tween Media Usage" commissioned byYTV, January 2007
081294 www.eMarketer.com
Adult Internet Users in Canada Who Perform OtherActivities "Often" or "Sometimes" While Accessingthe Internet, by Age, 2006 (% of respondents)
Watch TV
Listen to radio
16-24 41% 46%
25-34 33% 37%
35-44 30% 34%
45-54 22% 28%
55-64 15% 34%
65+ 12% 21%
16+ 25% 33%
Source: BBM Analytics, "CyberTRENDS," December 2006 as cited byCanadian Radio-television and Telecommunications Commission (CRTC),"Broadcasting Policy Monitoring Report 2007," December 2006
086493 www.eMarketer.com
Attitudes of Adult Consumers in Canada toward theInternet, January 2007 (% of respondents)
Using the Internet is an important part of their daily routine
35%
If they don't find out more about the Internet they will be leftbehind
26%
Don't know how people before me lived without the Internet
16%
Perfer to talk to people via e-mail than by any other method
13%
Note: n=1,000Source: Ipsos Reid, "Canadian Inter@ctive Reid Report" as cited in pressrelease, March 14, 2007
081925 www.eMarketer.com
Canada Internet 14
What Canadians Do Online
Of course broadband also helps to shift radio and other music,TV,
video and games online.Thus Internet users can easily engage in
these activities simultaneously without leaving their computers. In
this realm, too, it tends to be younger male users who are in the
vanguard; older users and women are less likely to be accessing
music,TV or video online.
086495086497
A recent study from the Solutions Research Group appears to
confirm that accessing multimedia online is now becoming
mainstream.This study concluded that, as of May 2007, more than
three million Canadians had uploaded video to a site and that just
over 40% downloaded a music file that month, up from 38% in
September 2006.
Blogging
Perhaps curiously, for a nation whose people are often seen as
reserved, at least in contrast to their neighbors to the south,
Canadians have become enthusiastic bloggers.
A survey of select countries by comScore Media Metrix and
iMedia Connection found that in October 2006 Canada had the
highest percentage of its online population visiting blog sites.
079432
The Blog Herald, an online source, published results of an informal
survey into blog numbers in several countries.According to the
compiler, Canada was among the top 10 countries in the world for
blog authorship in July 2006.
086503
These approximate numbers are bound to have risen in the year
since the information was compiled.
Online Audio and Video Activities of Adult InternetUsers in Canada, by Gender, 2006 (% of respondents)
Male Female
Download/listen to music 36% 26%
Watch videos 37% 21%
Listen to radio 25% 19%
Watch TV on the Internet 8% 3%
Download movies 7% 3%
Download TV programs 6% 2%
Source: BBM Analytics, "CyberTRENDS," December 2006 as cited byCanadian Radio-television and Telecommunications Commission (CRTC),"Broadcasting Policy Monitoring Report 2007," December 2006
086495 www.eMarketer.com
Online Audio and Video Activities of Adult InternetUsers in Canada, by Age, 2006 (% of respondents)
18-24 25-34 35-44 35-54 55-64 65+
Download/listen to music 77% 40% 34% 23% 16% 13%
Watch videos 53% 36% 31% 26% 16% 18%
Listen to radio 33% 30% 25% 18% 14% 12%
Download movies 19% 8% 4% 2% 4% 1%
Watch TV on the Internet 14% 8% 6% 4% 2% 4%
Download TV programs 12% 6% 3% 2% 1% 4%
Source: BBM Analytics, "CyberTRENDS," December 2006 as cited byCanadian Radio-television and Telecommunications Commission (CRTC),"Broadcasting Policy Monitoring Report 2007," July 2007
086497 www.eMarketer.com
Blog Web Site Visitors in Select Countries Worldwide,October 2006 (% of Internet users)
Canada 58.2%
Spain 51.4%
France 45.6%
UK 45.1%
Netherlands 44.3%
US 36.3%
Italy 30.7%
Germany 26.7%
Source: comScore Media Metrix as cited by iMedia Connection, December14, 2006
079432 www.eMarketer.com
Top 10 Blogging Countries Worldwide, Ranked byNumber of Blogs, July 2006 (millions)
1. US 15.0-30.0
2. South Korea 15.0
3. China 5.0
4. Japan 4.0
5. France 3.0
6. UK 2.5
7. Spain 1.5
8. Poland 1.4
9. Canada 0.7
10. Netherlands 0.6
Source: Blog Herald as cited by A Free and Decent Blog Host, January 2,2007
086503 www.eMarketer.com
Canada Internet 15
What Canadians Do Online
One survey on blogging in the first quarter of 2007, the “Ipsos
Canadian Inter@ctive Reid Report,” concluded that there are now
more than 15 million blogs associated with Canadian sites (although
not all these will necessarily be Canadian-authored blogs).
Moreover, roughly one in five Canadian Internet users had visited
a blog site on the day they were polled, and more than 20% had
done so in the previous week.
085955
The same study profiled those who looked at blogs and
compared their profile with larger demographic groups. Blog
visitors are marginally more likely to be male than female, and
younger Canadians show more interest than older Internet users.
Blogs also attract proportionately more visitors with higher
educational qualifications.
085957
Recent figures from TNS also point to a relatively young audience
for blogs.Almost three-quarters of Canadian online users
between 13 and 17 said they visit blog sites, and this proportion
falls off only slightly among 18- to 29-year-olds.
084788
Teens are also the most likely to post comments on blogs.
According to TNS, 31% of online teens have made a blog posting.
Blogs are gradually attracting more adults, however. Ipsos Reid
found that of those adults who said they had never visited a blog,
24% also said they were “somewhat” likely to do so in the next 12
months and 7% were “very” likely to.
TNS data suggest that 55% of Canadians 50 and older who read
blogs have also commented on them.
Blogs are also growing in popularity among residents of Quebec,
although less dramatically. In 2006, 19.8% of Quebecers polled by
CEFRIO claimed to have visited blog sites, compared with 12.3%
in 2005.
TNS data suggest that blog site visits by residents of French-
speaking areas in Canada rose 74% between July 2005 and July
2006, and visits by English speakers rose 82%.
More than one-half of Canadians in the Ipsos Reid study used a
search engine to find a blog rather than learn about one from
friends or colleagues.This intriguing finding could represent a real
opening to advertisers because in many cases search engine
marketing is already central to their online strategy.
If advertisers can harness the power of word of mouth and
lead potential customers from search environments to suitable
blogs, it should greatly strengthen their hold on potential and
actual customers.
The next most popular way of finding a blog was through personal
or professional networking sites (used by 17% of respondents in
the Ipsos Reid study).
About one in seven Internet users polled said they found blogs
through a news or company site. More than 40% of bloggers also
said they had bookmarked a blog once they found one that
interested them.
Many adults in Canada appear to consider the information
expressed in blogs relatively trustworthy, at least in certain
subject areas.
Two-thirds of the adult Internet users polled by Ipsos Reid said the
information in blogs was a “very” or “somewhat” reliable way to
keep themselves informed about new technology, for example,
and only 13% said this information was not at all reliable.
Internet Users in Canada Who Have Recently Visited aBlog, March 2007 (% of respondents)
Today 19%
Yesterday 10%
2-7 days ago 22%
Source: Ipsos Reid, "Ipsos Canadian Inter@ctive Reid Report" as cited inpress release, July 19, 2007
085955 www.eMarketer.com
Demographic Profile of Blog Visitors in Canada, March2007 (% of respondents in each group)
Gender
Male 36%
Female 31%
Age
18-34 45%
35-54 32%
55+ 21%
Education
High school or less 21%
Some post-secondary 36%
University graduates 40%
Total 34%
Source: Ipsos Reid, "Ipsos Canadian Inter@ctive Reid Report" as cited inpress release, July 19, 2007
085957 www.eMarketer.com
Internet Users in Canada Who Visit Blog Sites, by Age,April 30-May 5, 2007 (% of respondents)
13-17 73%
18-29 64%
Source: TNS Canadian Facts as cited in press release, June 11, 2007
084788 www.eMarketer.com
Canada Internet 16
What Canadians Do Online
When it comes to blogs focused on businesses, Canadians are
skeptical about the validity of information posted, perhaps
because they are aware of the mixed motives that may prompt
blog entries.
Only 4% said they considered information on blogs about
businesses “very” reliable.This low trust level reinforces the need
for advertisers to exercise caution in blog-related marketing and
to avoid any appearance of “fixing” blog postings.
085953
Most Canadians do admit to being influenced by blogs. One in 10
adult Internet users polled by Ipsos Reid thought that positive
comments about a product or service on a blog make them much
more likely to buy it, and just more than one-half said they would
be “somewhat” more likely to buy.
Hence the great attraction for advertisers who stand to benefit
substantially from this degree of leverage if a blog mention is
approving and seems genuine.
There is a downside, however. Negative blog comments have a
slightly greater effect than positive ones, something many
advertisers have already learned the hard way.
Ipsos Reid data indicate that 12% of Canadian Internet users said
negative comments about a product or service would make them
much less likely to purchase, and 54% say they would be
“somewhat” less likely to buy.
Bearing in mind that blogging is an active participation in the online
world and represents a visible contribution to online content, it is
not surprising that people involved in blogging are also more
involved with other aspects of online life than non-bloggers.
Ipsos Reid found that Internet users who are experienced users of
blogs—and contribute actively to them—are more likely to be
affected by what they read there about products and services.
Among self-described bloggers, 17% said negative comments
would make them much less likely to buy a product or service, and
17% said positive comments would make them much more likely
to purchase. (Remember that, in the general online population, the
comparable percentages were 12% and 10%, respectively.)
The same study found that bloggers also spend more time on the
Internet than their non-blogging compatriots, clocking up an
average of 23.4 hours a week actively engaged online, while non-
bloggers spend 15 hours.
In fact,bloggers appear more likely than non-bloggers to take part in
almost all the online activities that Ipsos Reid researchers asked about.
086501
Bloggers also report more time spent using the Internet while
engaged in other activities—watching TV, listening to the radio,
working or spending time with family and friends—than non-
bloggers, an average of 7.7 hours versus 5.2 hours weekly,
according to Ipsos Reid.
Social Networking
Blogging is not the only social medium that attracts Canadian
Internet users. Social networking sites, such as those that allow
sharing of music and video, seem to be even more popular.
084698
If eight in 10 Canadians online visited a social networking site in
April 2007, it highlights astonishing growth in this area in less than
a year.A number of sources appear to confirm a sharp uptake in
visits to these sites.
Reliability* of Information on Blogs about Businessesaccording to Internet Users in Canada, March 2007 (%of respondents)
Note: *when trying to form an opinionSource: Ipsos Reid, "Ipsos Canadian Inter@ctive Reid Report" as cited inpress release, July 19, 2007
085953 www.eMarketer.com
Not at all15%
Not very34%
Somewhat47%
Very4% Select Online Activities of Bloggers* vs. Non-Bloggers
in Canada, Q1 2007 (% of respondents)
Bloggers* Non-bloggers
Online banking 83% 65%
Comparison shopping for products 81% 65%
Purchasing products and services online 80% 62%
Clicking on Web site advertising 73% 50%
Note: *Bloggers are those Internet users who say they visit blog sites andalso contribute material to blogsSource: Ipsos Reid, "Blogging in Canada" as cited by Marketing Charts, April2007
086501 www.eMarketer.com
Social Networking, Multimedia and Blog Users inCanada, April 2007 (thousands of unique visitors and% reach)
Unique visitors
(thousands)
% reach
Social networking sites 18,452 80.1%
Multimedia* sites 18,247 79.2%
Blogs 14,685 63.8%
Total Internet audience in Canada 23,026 100.00%
Note: home and work locations; *sites that contain video clips, audio clipsor some other kind of interactive media such as shockwave/ flash etcSource: comScore World Metrix, provided to eMarketer, June 8, 2007
084698 www.eMarketer.com
Canada Internet 17
What Canadians Do Online
For example, during the last two months of 2006, just 16% of
Canadians reported visiting a social networking site in the
preceding 30 days, according to Ipsos Insight. But that was double
the number who had visited one before that.
085468
The increasing use of social networking sites by Canadians
reflected a wider growth trend during these months. China, India,
Germany and France also appear to have doubled the number of
people using social networking sites in December 2006. In the US,
visits to such sites actually tripled in the same period.
The Solutions Research Group (SRG) maintains that between
January and June 2007, Canadians again doubled their use of
these sites and represented the fastest-growing national
population on Facebook. Canadian membership of Facebook has
now passed two million, and almost one in 10 Canadian Internet
users now has a Facebook page, according to SRG.
In August 2007, mobile operator Rogers Wireless responded to the
apparent social networking craze by inking an exclusive
partnership with Fox Interactive Media’s MySpace. Owners of
some Rogers cell phones can now use their mobiles to post
comments and blog entries on MySpace, check mail, read
bulletins and alter their profiles.
As with most online innovations, younger Canadians are more
involved than older ones.The Rogers deal would seem to confirm
this, as MySpace is especially popular with younger people. More
than 80% of those visiting social networking sites during the first
week of May 2007 were between 13 and 17, according to TNS.
084785
Among respondents 50 and older, 67% said they did not use social
networking sites and preferred to keep in touch with family and
friends in other ways, such as by phone or e-mail.
But age is not the only factor here as 44% of the total sample felt
the same.And many people have other doubts about social
networking online.
Almost one in five said they did not really feel safe using social
networking sites, and 17% said their friends did not use them. In
addition, a rump population of 16% said they considered these
sites “stupid” and not worth joining.
Active* Internet Users in Select Countries WorldwideWho Have Recently or Ever Visited Social NetworkingWeb Sites, November-December 2006 (% ofrespondents)
South Korea
55%
11%
Brazil**
41%
6%
China**
27%
15%
Mexico**
26%
10%
US
24%
8%
UK
20%
8%
Canada
16%
9%
India**
16%
8%
Germany
14%
5%
France
12%
6%
Japan
9%
13%
Russia**
1%
2%
Within the past 30 days More than 30 days ago
Note: *in the past month; **urban sampleSource: Ipsos Insight, "The Face of the Web 2006" as cited in press release,July 5, 2007
085468 www.eMarketer.com
Internet Users in Canada Who Visit Social NetworkingSites, by Age, April 30-May 5, 2007 (% of respondents)
13-17 83%
18-29 74%
Source: TNS Canadian Facts as cited in press release, June 11, 2007
084785 www.eMarketer.com
Canada Internet 18
What Canadians Do Online
Online Gaming
TNS data suggest that, as of late spring 2007, online games came
third behind social networks and blogs in the social media stakes,
with 36% of Canadian Internet users taking part in them.
084789
Most popular were online poker and “live” games where the user
is the shooter, according to TNS. Massively multiplayer online
games (MMOGs) also have a strong following.
By contrast, the virtual world Second Life (often considered a game)
did not pull in many punters. Only 2% of Canadians polled said they
had sufficient interest in Second Life to create an avatar there.
Internet users in Quebec still lag slightly behind other Canadians in
their use of gaming sites.The rate of increase in these visits is
slower, too.
According to the “Ipsos Canadian Inter@ctive Reid Report,” the
number of unique English-speaking Canadian visitors to gaming
sites rose 38% between July 2005 and July 2006, and the number
of French-speaking visitors rose 33%.
Ipsos Reid does note that the home PC has not yet taken over as
the primary device used by Canadians who play games. Even
though 83% of respondents said that they own a home computer,
38% of adults also own a game console and 23% have a handheld
game system.
There are several reasons why consoles and handhelds remain an
important force in the market. One is that Sony’s PlayStation 2 is
still a bestseller in Canada. Second, several new-generation
consoles, such as the PlayStation 3 and the Nintendo Wii, have
done well since their introduction in November 2006.Third,
Canada is home to many successful firms developing games for
consoles and consumer awareness is high.
Further, the Canadian government announced in November 2006
that it would provide investment for locally produced video games
destined for consoles, as well as continuing tax incentives that
benefit game developers.
These and other factors should keep console and video game
sales strong through 2007 and the early part of 2008.The market
for console and handheld games will grow at a compound annual
growth rate of 5.4% between 2006 and 2011, according to
projections by PricewaterhouseCoopers (PwC).
Games for PCs are expected to generate slightly higher revenue in
2007 before beginning to decline again in 2008. Meanwhile,
Canada’s excellent broadband penetration will encourage
continued growth in online gaming.
PwC sees the presence and expansion of broadband in Canada as
one of the key influences on the game-playing habits of the
country.Thanks to broadband, online games already account for
more of the gaming market in Canada than in other regions.
PwC researchers believe that in 2006 online games represented
28% of Canada’s gaming market, compared with 21% in Asia
Pacific, 13% in Europe, the Middle East and Africa (EMEA) and 12%
in the US.
Almost two million Canadians were playing games online in 2006,
according to PwC, and nearly 90% of online gamers are believed to
have broadband connections.
As broadband subscriptions rise to roughly 12 million in 2011, the
number of people playing games online is expected to reach four
million, one-third of all broadband users.
PwC also sees spending on online games rising from US$248
(C$280) in 2006 to US$476 (C$585) in 2011, a compound annual
growth rate of 13.9% in US dollar terms.
Development of online games—and the advertising to go with it—
should be spurred by recent research from Massive, an in-game
advertising specialist acquired by Microsoft in 2006.
Massive’s study indicates that in-game ads can increase
consumer ad recall by as much as 41% (on average), ad rating by
69%, brand rating by 37% and brand familiarity by 64%. Massive’s
data also suggest that in-game ads can boost purchase
consideration by an average of 41%.
The fastest-growing market for games is the wireless platform.
Of the 18.7 million Canadians who were mobile phone subscribers
in 2006, PwC estimates that 2.4 million (13%) downloaded a game.
That proportion is projected to rise to 30% in 2011 when mobile
subscriptions will approach 29 million.
PwC suggests that spending on games for wireless devices will
rise more than 150% between 2006 and 2011, from US$89 million
(C$101 million) to US$230 million (C$283 million).
However, it is not yet clear how much of Canada’s wireless gaming
will be Internet-based or how quickly online gaming with mobile
devices will take off. Current pricing structures make data
operations via mobile phones relatively expensive for Canadians.
In the short term, gaming online through mobile phones will be an
extremely small market.
Internet Users in Canada Who Use Select OnlineSocial Media, April 30-May 5, 2007 (% of respondents)
Social networks 53%
Blogs 50%
Play online games 36%
Source: TNS Canadian Facts as cited in press release, June 11, 2007
084789 www.eMarketer.com
Canada Internet 19
What Canadians Do Online
E-Commerce
Statistics Canada has reported that total Canadian online sales rose
to almost C$50 billion (US$44.25 billion) in 2006,posting a fifth
consecutive year of double-digit growth. Internet retail sales hit C$4.7
billion (US$4.16 billion),almost twice the level recorded for 2005.
In the US, by comparison, total online consumer spending
including travel was US$170.8 billion (C$193.0 billion) in 2006,
according to comScore.
Government figures indicate that more than 15% of Canadian
retail companies sold online last year, compared to 10% in 2005.
But even online retail sales constituted barely 1% of total retail
sales in the country in 2006.
Overall, the number of Canadian firms selling online was about
8%, up just 1% on 2005. Clearly the majority of Canadian
companies are not yet involved in e-commerce, and more than
two-thirds of all e-commerce remains B2B.
Thus there is still a long way to go before Canadian consumers can
enjoy the level of online access to retail goods and services that
Internet users in many other countries have.
Within the limits of the current online marketplace, Canada’s
Internet users are enthusiastic shoppers. eMarketer calculates
that almost 70% of Canadian Internet users 18 and older are
shopping, if not buying, online.
eMarketer estimates that the numbers of online shoppers and
buyers in Canada will both continue to rise in the next two years.
More of the people who research purchases online will also
become online buyers.
079081
079083
It is worth noting that 65.6% of Internet users 18 and older in the
US were online buyers in 2006 compared with 53.3% in Canada. In
the US, average annual spending per online buyer was US$972
(C$1,098) last year, compared with US$891 (C$1,007) in Canada.
But eMarkerter projects that the average amount spent online by
Canadian buyers is set to pass US$1,000 (C$1,090) this year, a rise
of almost 14% in one year.
079095
The recent J.C.Williams Group poll of 1,500 online buyers and 500
Internet users who buy only offline produced similar findings.
These data suggest that the average spend per online buyer in
Canada reached C$454 (US$409) in the six months to April 2007
(C$7 more than a year earlier).Also, items in more categories were
bought more often than in the same period the year before.
Online Shoppers in Canada, 2005-2009 (millions and %of Internet users)
2005 10.8 (64.4%)
2006 11.9 (67.9%)
2007 12.7 (69.2%)
2008 13.6 (71.4%)
2009 14.6 (74.4%)
Note: ages 18+Source: eMarketer, December 2006
079081 www.eMarketer.com
Online Buyers in Canada, 2005-2009 (millions and % ofInternet users)
2005 8.1 (48.3%)
2006 9.3 (53.3%)
2007 10.4 (56.2%)
2008 11.3 (59.5%)
2009 12.3 (63.0%)
Note: ages 18+Source: eMarketer, December 2006
079083 www.eMarketer.com
Average Annual Amount Spent Online* by OnlineBuyers in Canada Ages 18+, 2005-2009 (% increase**vs. prior year)
2005 $766
2006 $891 (8.7%)
2007 $1,014 (13.8%)
2008 $1,144 (12.8%)
2009 $1,295 (11.2%)
Note: Converted to US$ at average annual exchange rates (projected forfuture years); *includes online travel, event ticket and digital downloadsales; **based on C$ figureSource: eMarketer, December 2006
079095 www.eMarketer.com
Canada Internet 20
What Canadians Do Online
In the 18 categories measured by the study, purchase incidence
rose between 1% and 5% on the same period the previous year.
Music and DVDs, consumer electronics, and toys and video games
registered the greatest gains.
086506
These rates of change are hardly meteoric, however. It is hard to find
any study of online shopping behavior in which Canada’s Internet
users do not consistently score lower than their US neighbors.
For example, eMarketer’s comparative estimates of US and
Canadian online buyer numbers, cited above, are close to Media-
Screen’s figures.
According to these data, 64% of US adult broadband users age 18
and older say they “regularly” shop for products or services in a
typical month, and just 53% of Canadians do so. (The gap may
even be greater as data for Canada were collected in April 2007
and data for the US were collected in August 2006.)
Although almost one-quarter (23%) of US online buyers use an e-
wallet or passport payment service, only 16% of Canadians said
they use this option. Media-Screen also found less predictable
differences between Canadians and Americans where online
shopping was concerned.
Of the study respondents, more Canadians than Americans could
be described as “everyday pros.”Where other user segments
might go online chiefly to have fun or stay connected, everyday
pros like to use the Web to “get things done.”They are also more
affluent than other user segments.At this point, however, the two
national populations diverge.
In the US, everyday pros do more shopping and buying online than
other users, but that is not the case in Canada.The affluence of
Canada’s everyday pros does not seem to correlate with more
online shopping or spending.
National traits and habits aside, Canadian e-commerce should rise
markedly in the next few years.
One reason is that more retailers—inside and outside the
country—are beginning to offer Canadians real choice and value
and developing sites and shipping options to suit.
American-based retailers in particular are taking steps to tailor
their offerings more to the needs and preferences of Canadian
customers, something many did not do before.The fact that a
number of these retailers see demand slowing at home is a real
incentive, too.
Nonetheless, there are still segments of the Canadian population
less inclined to buy online.
Older Internet users are definitely more reluctant, with 45% of
those 55 and older saying they are “very concerned” about online
security and unwilling to use their credit cards on the Internet,
claim researchers from Ipsos Reid.About 37% of those 18 to 54
expressed the same security worries.
Residents of Quebec are another hesitant group.
E-commerce has never taken off in the French-speaking province
to the extent it has elsewhere in Canada. It was much more
popular in 2006 than in 2001 but did not pick up much during 2006
itself, according to CEFRIO.
In October 2006, just 21.2% of Quebecers said they had bought
something online in the previous month.
Here, too, fear of security flaws and fraud is a big part of the
problem, CEFRIO found.
In 2006, an average 41.4% of Internet users in Quebec thought
paying online was “very” or “sufficiently” secure.This percentage
rose to 46.1% in October last year, but that leaves at least 53% who
thought that using their credit cards online was unsafe.
Even as the Internet becomes more familiar and the online buying
habit grows in other parts of Canada, Quebec does not seem to be
following the trend.
Products Purchased Online by Internet Users inCanada, 2006 & 2007 (% of respondents)
Books/magazines
33%
34%
Music/DVD/videos
27%
32%
Clothing and accessories
21%
23%
Consumer electronics
16%
21%
Toys, video games
16%
20%
Health and beauty items
15%
17%
2006 2007
Source: Visa and Yahoo! Canada, "2007 Canadian E-commerce and SocialNetworking Summary conducted by J.C. Williams Group, July 3, 2007
086506 www.eMarketer.com
Canada Internet 21
What Canadians Do Online
It is more common for Quebec residents to research a product
online and then buy it offline. But this behavior is not changing much
either, apparently. In 2005, 28% of adult Internet users in Quebec
were researching online before buying elsewhere, according to
CEFRIO. In 2006, the proportion had risen to just 28.3%.
It may be that Quebecers are not finding sites that offer
satisfactory product information or comparison-shopping. Or
perhaps the number of sites in French—still preferred by most
Quebec residents—is disappointing.
Retailers and other companies that target Quebecers with useful
product information and comparison facilities could seize a
significant advantage in this part of the country.
086496
The J.C.Williams study asked respondents throughout Canada
who did not buy online why they avoided doing so.
More than one-third (37%) said they had no need to buy on the
Internet (up from 36% in April 2006). Just less than one-half (48%)
said they worried about using their credit card online (up from 42%
a year earlier), and 44% (8% more than in 2006) said they did not
want their private information to be accessible on the Web. (The
researchers speculated that recent news of online data breaches
had helped to push up levels of distrust among their sample.)
Just as active Canadian bloggers appear more engaged in all kinds
of online activities than non-bloggers, the same is true of online
buyers, according to J.C.Williams.
Among online buyers, 87% said they had read consumer or
product reviews online, compared with 68% of offline buyers.
More than 94% of online buyers had watched video clips online
versus 83% of offline buyers.The same percentage had viewed
pictures on the Internet, compared to 86% of shoppers who did
not buy online.
A study conducted by J.C.Williams for Visa and Yahoo! Canada
also produced firm evidence that Internet users who shop online
are far more likely than non-buyers to write a blog entry or an
online product review, for example.
085628
Both online and offline buyers share some dislikes. More than two-
thirds (68%) of the online buyers polled by J.C.Williams said they
were concerned about their privacy (this rose to 74% among
offline buyers).Almost as many (63% of those buying online) said
they do not like receiving unwanted marketing messages.
Fewer respondents (57%) among the offline buyers complained
about this, possibly because they do not receive as many of
these messages.
Mobile Internet Users
Government statistics suggest that more than 55% of Canadians
had a mobile phone at the end of 2006.
083953
Adult Internet Users in Quebec Who Have Researchedor Bought Products Online, January, April & July 2006(% of respondents)
January 2006
14.4%
28.6%
April 2006
12.9%
30.4%
July 2006
12.3%
25.9%
Bought online Researched products online
Source: Centre francophone d'informatisation des organizations (CEFRIO),"NETendances 2006," conducted by CEFRIO and Léger Marketing, February2007
086496 www.eMarketer.com
Select Social Networking Activites of Online Buyersvs. Internet Users* in Canada, April 2007 (% ofrespondents in each group)
Written a blog
35%
21%
Written an online product review
29%
9%
Posted online video content
19%
8%
Online buyers (n=1,500) Internet users (n=500)
Note: *who do not make purchases onlineSource: Visa and Yahoo! Canada, "2007 Canadian E-commerce and SocialNetworking Summary conducted by J.C. Williams Group as cited in pressrelease, July 3, 2007
085628 www.eMarketer.com
Mobile Phone Subscribers and Penetration in Canada,Q4 2005 & Q4 2006 (millions, % of population and %increase vs. prior year)
Q4 2005 Q4 2006 % change
Subscribers 16.64 18.04 8.4%
Penetration 51.4% 55.1% 7.2%
Source: Statistics Canada as cited in press release, May 14, 2007
083953 www.eMarketer.com
Canada Internet 22
What Canadians Do Online
Data from BBM Analytics’ “CyberTRENDS” report put the 2006
end-of-year number of subscribers slightly higher at 58%.The
same study provided an overview of how many Canadians owned
other mobile devices as well, and what they used the gadgets for.
086504
Of course most of these gadgets and activities do not require
Internet access.Also, the number of Canadians accessing the
Internet via a cell phone or PDA has lagged substantially behind
the level of overall mobile phone use.
Mobile Internet penetration reached 21% of cell phone owners in
2006, according to the “Ipsos Canadian Inter@ctive Reid Report.”
In 2003, according to the same source, only one in 10 Canadians
accessed the Internet with a mobile device.
The CRTC estimates far greater penetration, saying that 58% of
Canadians used a cell phone to access the Internet in 2006. But
because estimates from other sources are so much lower, it
seems likely that the CRTC is calculating potential rather than
actual use.This is based on the Internet readiness of modern
mobile phones, not the way they are used from day to day.
The fact is that Canada suffers from some serious handicaps in
the race to get its residents online via mobile.
For one, mobile operators generally seem to have little money to
invest in network expansion. Coverage is relatively good in urban
environments and other areas where population density is high.
But enormous tracts of the country are underdeveloped in
network terms, which inhibits further uptake of mobile services
and disadvantages Canadians in more remote areas.
Neither the government nor the commercial community will find
this situation viable in the long term. Instead, both government
and commercial entities will want to reach all citizens with
efficient digital channels. Even in towns and cities, networks will
need regular upgrading to meet the increasing challenge of
mobile traffic.
Pricing is the other big issue facing the government and providers
of mobile services in Canada.
Historically, Canadian mobile operators have prioritized voice over
data traffic. Current networks are slow when it comes to data
transfer, and operators typically charge subscribers by the amount
of data they download or upload, which makes services
prohibitively expensive.
Several industry observers have commented on this state of
affairs, pointing out that Canada, often a leader in technology and
civic responsibility, is falling behind the rest of the world in catering
for mobile data.
In the US and most Western European countries, operators
generally offer reasonably priced plans that include unlimited data
downloads via mobile.
AT&T, the sole service provider for the Apple iPhone, supplies
unlimited data transfers for US$20 (C$21.80) per month, for
example. Prices of monthly data plans in Canada are higher even
than those in some Eastern European,Asian and African nations.
086499
Now that the Internet is moving into the mobile channel, this
business model is not sustainable or popular. Operators stand
accused of fostering an uncompetitive market that does not meet
the needs of Canadian businesses or consumers.
Cheapest Rates for Mobile Data Transfer* amongMobile Operators in Canada As Compared with Ratesof Operators in Other Countries, April 2007
Vodafone (New Zealand) $41
T-Mobile (US) $58
Sprint (US) $69
Terracom (Rwanda) $74
Telsra (Australia) $83
Vodafone (UK) $102
Telus (Canada) $375
Bell (Canada) $850
FIDO (Canada) $1,600
Rogers (Canada) $1,600
Note: in US$; *cost to transfer 500MB per month or 100 minutes at700kB/secSource: ThomasPurves.com as cited in press release, April 9, 2007
086499 www.eMarketer.com
Mobile Device Usage in Canada, by Gender, December2006 (% of respondents)
% of cellphone, Blackberry or PDA owners who used thesedevices to:
Cellphones
MP3 player
Webcam
iPod
PDA
Blackberry
Take pictures
Record video
Obtain news or weather
Obtain sports scores
Watch television
Male
53%
62%
64%
58%
75%
64%
58%
73%
78%
87%
59%
Female
47%
38%
36%
42%
25%
36%
42%
27%
22%
13%
41%
All respondents
58%
14%
9%
7%
5%
4%
23%
8%
6%
4%
2%
Note: ages 16+Source: BBM Analytics, "CyberTRENDS," December 2006 as cited byCanadian Radio-television and Telecommunications Commission (CRTC),"Broadcasting Policy Monitoring Report 2007," July 2007
086504 www.eMarketer.com
Canada Internet 23
What Canadians Do Online
Mobile device manufacturers are certainly looking for change.A
representative for RIM, which makes the BlackBerry, commented
that the firm might sell “eight or nine times” more devices if
Canadian mobile data prices were comparable to fees elsewhere.
Mobile phone makers are also frustrated by a system that
discourages consumers from buying Internet-enabled,
next-generation phones. Consumers also want to see a
different approach.
High data prices mean Canadians hardly use the mobile Internet
and cannot take advantage of new services available elsewhere. If
not corrected, development of the mobile Internet market in
Canada will be undermined, leaving the country and its
consumers at a significant disadvantage.
At the same time, Canadians do not seem willing to pay any
premium for the mobile broadband that would make robust
mobile services possible. Overall, consumers polled in 2006 said
that they would choose to pay less, rather than replace their fixed
broadband with mobile.
083025
Mobile Online Activities
In these circumstances, it is not surprising that Canadians have
been slower than consumers in many other developed countries
to use their mobiles for multimedia, such as video capture.
Telephia has reported that just 4% of Canadians took video
pictures with their phones in 2006.
077545
An April 2007 survey of professionals age 30 to 54 by Palm Canada
and Léger Marketing did spot some encouraging developments.
Canadians in this age group who have mobile gadgets are
gradually doing more with them.
Much of this mobile activity is work-related.The study found that
76% of respondents checked e-mail outside their working hours,
and 60% felt they had joined the “always-on” brigade.
A similar number owned up to checking e-mail or voicemail on
their devices before going to bed, and 37% admitted they had used
their mobile to do work while at a social or family event. More than
one-quarter confessed to answering e-mails during dinner.
But about 60% of these consumers are also turning to a phone,
PDA or other mobile device for entertainment, in the broadest
sense of the word.
One in five said they use a smartphone or another multifunctional
device. More than 40% listened to MP3 music tracks, 33% listened
to the radio and 19% watched videos. One in 10 visited social
networking sites via mobile.And 73% said they thought e-mailing
on mobile devices could be entertainment as well as work.
The Telecommunications Industry Association (TIA) and Wilkofsky
Gruen Associates have also published figures suggesting that
consumer use of mobile data is finally taking off.
Average Monthly Internet Access Spending andPremium Amount that Internet Users in SelectCountries Worldwide Would Pay for MobileBroadband Services, 2006
Current Internet spending
Premium would pay for
mobile broadband
UK $33.0 $9.1
US $31.2 $1.9
Australia $28.4 $1.3
Spain $37.9 $0.9
China $8.3 $0.2
Canada $28.7 -$0.7
France $29.6 -$3.0
Taiwan $20.3 -$3.5
Italy $40.1 -$6.8
Germany $32.4 -$7.6
South Korea $30.3 -$9.7
Japan $32.7 -$11.5
Note: All figures are in US$; negative figures represent consumers who arenot willing to pay a premium and would in fact choose to pay less toreplace their fixed broadband with mobileSource: Parks Associates, "Mobile Broadband Wireless: Path toward 4G,"April 2007
083025 www.eMarketer.com
Adoption Rate* for Mobile Phone Video Capture in theUS, Canada and Select Countries in Western Europe,2006
Spain 15%
Italy 14%
UK 12%
Sweden 10%
France 9%
Germany 9%
Canada 4%
US 3%
Note: *percent of mobile phone users who use their mobile phones to takevideosSource: Telephia as cited in press release, October 12, 2006
077545 www.eMarketer.com
Canada Internet 24
What Canadians Do Online
For example, these organizations concluded that Canadian
revenue from mobile video games will grow 44% in 2007, to reach
US$167 million (CS$182 million).
Similarly, revenue from mobile music downloads is expected to
rise from US$79 million (C$86 million) in 2006 to $111 million
(C$121 million) in 2007, a gain of 41% in US dollar terms.
081751
Conclusion
Canada has a long-standing commitment to the
Internet and broadband in particular.The online
population continues to rise in substantial
increments, and robust broadband infrastructure
will bring high-speed services to almost all
citizens within a few years.
Most Canadians are eager participants in the online world and
keen to take advantage of its benefits.The remarkable growth of
blogging and social networking by Canadians is just one sign of
their enthusiasm.The high level of participation in online banking
and comparison-shopping is another.
Some segments of the population, such as those 55 and older and
French-speaking residents, have historically been less active online.
With older citizens, problems of access and incentive continue,
especially as people can become less confident with age and may
resist the challenges of mastering new technology.The Canadian
government continues its efforts to bring this group online.
In Quebec there is growing awareness that the Internet is here to
stay and should be made to work for individuals and communities.
In many respects, the Web may even be a catalyst for positive
changes that no other influence could bring about.
There are temporary hurdles to clear in the areas of e-commerce
and mobile Internet access.
Canadian e-commerce, now on a healthy upward path, will
continue to expand and deliver more of what consumers
want.This in turn will make online channels even more attractive
to advertisers.
Mobile Internet provision is a harder nut to crack. Mobile
operators are being forced to rethink their business models and
may need to forgo short-term profit in favor of long-term potential.
All in all, Canada looks set to continue in its role as a world leader
in Internet provision and usage.
Mobile Game and Music Revenues in Canada,2002-2010 (millions)
2002
$5
$1
2003
$14
$4
2004
$27
$17
2005
$72
$52
2006
$116
$79
2007
$167
$111
2008
$214
$144
2009
$249
$186
2010
$288
$234
Mobile video games Mobile music
Note: US$Source: Telecommunications Industry Association (TIA), Wilkofsky GruenAssociates, "2007 Telecommunications Market Review and Forecast,"January 2007
081751 www.eMarketer.com
Canada Internet 25
Related Information and Links
Related Links
Statistics Canada
http://www.statcan.ca
comScore Media Metrix
http://www.comscore.com
J.C. Williams Group
http://www.jcwg.com
PricewaterhouseCoopers
http://www.pwc.com
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