canadian ad spending assessment from borrell associates

Ad-Spending Analysis and Forecasts for Canadian MarketsMay 7, 2012

Special presentation:Canadian Ad Spending

About this Presentation

The following presentation was made during a Webinar on May 7, 2012,by Gordon Borrell, Kip Cassino, Greg Harmon and Andrew Martin from Borrell

Associates. It represents Borrell’s initiation of coverage of the CanadianAdvertising marketplace and the offering of Borrell’s Local Ad Spending Report(LA$R™) for any local Canadian market. For more information, see the contact

information contained on the final slide.

Our Foundation: Research

Determining how much local advertisers actually spend is extremelydifficult but incredibly important in this time of shifting ad dollars.

We do it better than anyone else.

Research Components Advertisers

Spending: Database of 25 million companies Receipts: Database of 5,700 online media companies Verification & Forecasting: Panel of 6,000+ businesses

Consumers Scarborough, Claritas Ongoing surveys of web users

The Real SecretWe employ a disruptive model

The Disruptive Model Old Method of Ad-Tracking

Most employ the traditional “top down” approach Offers accurate view of what can be counted

Certain media companies Certain advertisers

New Method of Ad-Tracking Bottom-up approach tracks every businessMatches it with known media company receipts Verifies online estimates against our database of 5,700 companies

Market Advertising Data

http://compass.borrellassociates.com/learnmore

http://compass.borrellassociates.com/

http://compass.borrellassociates.com/learnmore

ww

w.b

orr

ella

sso

cia

tes.c

om

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012F 2013F 2014F 2015F 2016F

$ in

000s

Canadian Marketing Expenditures Trend & Forecast

Advertising

Non-Ad Marketing

Forecast

Traditional Advertising Down,

Non-Ad Marketing Up

ww

w.b

orr

ella

sso

cia

tes.c

om

Canadian Ad Spending: 2011

2011 Estimate, as of R4 Data All Estimates in Canadian $ Millions

National Local Total

Media /Regional Share Share Available Share

Newspapers $441.380 4.6% $2,615.053 38.3% $3,056.433 18.5%

Other Print $597.490 6.2% $171.793 2.5% $769.283 4.7%

Directories $555.212 5.7% $603.894 8.8% $1,159.106 7.0%

Broadcast TV $2,190.544 22.6% $424.055 6.2% $2,614.599 15.8%

Cable TV $1,051.407 10.9% $318.576 4.7% $1,369.984 8.3%

Radio $408.701 4.2% $1,073.719 15.7% $1,482.420 9.0%

Out of Home $490.417 5.1% $73.763 1.1% $564.180 3.4%

Cinema $685.703 7.1% $19.964 0.3% $705.667 4.3%

Direct Mail $1,390.330 14.4% $755.519 11.1% $2,145.849 13.0%

Online $1,736.466 17.9% $686.019 10.0% $2,422.484 14.7%

Telemarketing $139.652 1.4% $90.428 1.3% $230.080 1.4%

2011 Estimate $9,687.302 100% $6,832.783 100% $16,520.085 100%

ww

w.b

orr

ella

sso

cia

tes.c

om

Canadian Ad Spending: 2016

2016 Forecast All Estimates in Canadian $ Millions


Media /Regional Share Share Available Share

Newspapers $348.104 4.1% $2,051.143 33.2% $2,399.247 16.4%

Other Print* $436.817 5.2% $146.128 2.4% $582.945 4.0%

Directories $325.445 3.9% $482.112 7.8% $807.557 5.5%

Broadcast TV $1,540.178 18.3% $230.432 3.7% $1,770.610 12.1%

Cable TV $1,076.893 12.8% $309.068 5.0% $1,385.961 9.5%

Radio $402.728 4.8% $933.767 15.1% $1,336.495 9.1%

Out of Home $523.484 6.2% $83.215 1.3% $606.699 4.1%

Cinema $696.905 8.3% $20.705 0.3% $717.610 4.9%

Direct Mail $1,294.830 15.3% $756.129 12.2% $2,050.959 14.0%

Online $1,653.904 19.6% $1,079.195 17.4% $2,733.099 18.7%

Telemarketing $139.466 1.7% $95.456 1.5% $234.922 1.6%

2016 Forecast $8,438.754 100% $6,187.350 100% $14,626.104 100%

* Includes Alternative/Business Newspapers and "Other Publications."

ww

w.b

orr

ella

sso

cia

tes.c

om

Canadian Ad Spending: Change by 2016

National Local Total Forecast

/Regional Percent Percent Percent Share Pt

Media Change Change Change Change Change Shift

Newspapers ($93.276) (21.1) ($563.910) (21.6) (21.5) (2.1)

Other Print* ($160.673) (26.9) ($25.665) (14.9) (24.2) (0.7)

Directories ($229.767) (41.4) ($121.782) (20.2) (30.3) (1.5)

Broadcast TV ($650.366) (29.7) ($193.623) (45.7) (32.3) (3.7)

Cable TV $25.486 2.4 ($9.508) (3.0) 1.2 1.2

Radio ($5.973) (1.5) ($139.952) (13.0) (9.8) 0.2

Out of Home $33.067 6.7 $9.452 12.8 7.5 0.7

Cinema $11.202 1.6 $0.741 3.7 1.7 0.6

Direct Mail ($95.500) (6.9) $0.610 0.1 (4.4) 1.0

Online ($82.562) (4.8) $393.176 57.3 12.8 4.0

Telemarketing ($0.186) (0.1) $5.028 5.6 2.1 0.2

Market Total ($1,248.548) (12.9) ($645.433) (9.4) (11.5)

ww

w.b

orr

ella

sso

cia

tes.c

om

Canadian Non-Ad Marketing, 2011

2011 Estimate, as of R4 data All Estimates in Canadian $ Millions


Spending Category /Regional Share Share Available Share

Promotions $23,628.464 80.1% $11,470.816 89.2% $35,099.280 82.8%

Online Promotions & PR $2,313.200 7.8% $127.612 1.0% $2,440.811 5.8%

Event Marketing $3.950 0.0% $1.191 0.0% $5.141 0.0%

Ad Production $3,287.497 11.1% $1,151.231 9.0% $4,438.728 10.5%

Sales Force Materials $169.820 0.6% $23.965 0.2% $193.785 0.5%

Public Relations $88.098 0.3% $65.891 0.5% $153.989 0.4%

Market Research $25.910 0.1% $12.462 0.1% $38.372 0.1%

2011 Estimate, "Non Ad" Spending $29,516.938 100.0% $12,853.169 100.0% $42,370.107 100.0%

Share 69.7% 30.3% 100%

ww

w.b

orr

ella

sso

cia

tes.c

om

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012F 2013F 2014F 2015F 2016F

$ in

000s

Canadian Marketing Expenditures Trend & Forecast

Advertising

Non-Ad Marketing

Forecast

Online Advertising

Online Advertising

Flattens Out and Remains

a Small Share.

Individual Market Analyses

ww

w.b

orr

ella

sso

cia

tes.c

om Market Advertising Data

Snapshot: Vancouver CMA

ww

w.b

orr

ella

sso

cia

tes.c

om

Snapshot: Victoria CMA, 2011

ww

w.b

orr

ella

sso

cia

tes.c

om

Snapshot: Victoria CMA

SMB Print Advertiser Survey

Source: © Borrell Associates, Inc. SMB Survey Wave 6, Q4 2011

Change in Spending from 2011 to 2012

Question 4

13%12%

3%

9% 9%

14%

10%

2%

26%

57%

4%

14%

58%

43%

52%

16% 16%

39%

34%

7%

40%

30%

15%

26%

Grow

Stay the Same

247Total Respondents


Online Adv. Expected to Use in 2012

Question 38 202Total Respondents


Local Online Buying: From What Media?

Question 6

4% 5%

13%15%

20%

13%

25%21%

45%

22%



Maintain Social Network?

Questions 13 & 14

Yes63%

No35%

Don't Know2%

143

Total Mean Median

599,019 5,076 175

How many Friends, Fans, Followers, or other users

does your business Social Network have?

Total Respondents



Been Pitched By Advertiser for Mobile

Question 22

Yes

No

Don't

know

38%

45%

17%


Contact Information

Andrew MartinDirector of Corporate DevelopmentPhone: 1-416-463-0007Email: [email protected]