Total advertising expenditure

Advertising expenditure is highly sensitive to changes in overall economic activity and business confidence. As a result, advertising expenditure declined 9.8% in 2009 due to corporate profit plummeting that year. As businesses contended with lower corporate profits, many companies slashed their relatively discretionary expenditures, including their advertising budgets. Moreover, in 2013 and 2014, total advertising expenditure declined an estimated 4.2% and 2.1%, respectively. The decline in television advertising, coupled with significant declines in newspaper advertising, has cut into total advertising expenditures. More recently, however, advertising expenditure has rebounded considering stronger economic growth.

According to 2024 data from the Government of Canada's Advertising Activities 2023 to 2024, the digital media accounts for about 64.0% of total advertising expenditures. Other common platforms for advertising include catalogues, direct mail and the yellow pages. While print advertising expenditures have declined significantly over the past five years, with television also demonstrating a slight decline during the five-year period, other media outlets have kept advertising expenditures afloat. Internet advertising has skyrocketed as a share of total advertising expenditure over the past decade. At the same time, many consumers perceive traditional media advertising as being more reliable than digital media, according to data from the Advertising Standards Canada. As a result, advertisers may target specific demographics, such as individuals aged 65 and older, via traditional media formats.

In 2020, total advertising expenditure is expected to take a significant hit. IBISWorld forecasts total advertising expenditure to decline 6.0% in 2020, coinciding with a decrease in corporate profit levels for the same year. Over 2020, the pandemic and associated social distancing measures led to significant losses in GDP. Large declines in retail sales, company revenues, consumer spending and a drastic increase in the unemployment rate were also experienced. To prevent as much loss to profit as possible, companies pulled back significantly on advertising expenditure. However, the rapid economic recovery spurred by consumer confidence and sharp increases in demand has led to projected increases in corporate profit. A rapid economic recovery has increased the inflation rate. Interest rates have risen in order to combat inflation, resulting in suppressed consumer demand and reduced business expenditure on advertising. As interest rates remain elevated in 2023 with inflation remaining a deterrent on consumer spending as well as business' propensity to advertise. As a result, advertising expenditure dropped 6.4% and 1.7% in 2023 and 2024, respectfully, before an estimated increase of 2.5% in 2025.