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SCATHING CANADIAN ONLINE ADVERTISING REPORT

Source: Canada News

Posted on March 18, 2000

      The Internet Advertising Bureau Of Canada (IAB Canada) released its report this week on the state of the online advertising industry in the country.

      According to the report, the Internet advertising industry stands to make a significant contribution to the Canadian Internet economy, both in its own right and in its role as a promoter of Canadian business.

      This year alone, online advertising revenues in Canada are projected to reach over CAN$109 million ($74 million), a 96 percent increase over 1999 revenues.

      The report also discloses that, although the online share of advertising revenues is growing, Canadian online advertising expenditures are still lagging behind U.S. expenditures by a 60:1 ratio.

      Ted Boyd, President of IAB Canada and President of Indigo On-line, attributes this gap to the reluctance of Canadian companies to bring their businesses online.

      "Canadian advertisers and consumers are looking for Canadian places to spend their money on the Internet. To put it simply, the fewer Canadian companies online the fewer the opportunities, said Boyd. "Canadian businesses are also missing a golden opportunity to attract business North of the border by exploiting the Internet and the low Canadian dollar."

      The report also surveys additional opportunities and challenges facing the industry. Emergent opportunities include an increasing acceptance of the Internet as a mass medium; rapid growth of e-commerce; a broadening range of products and services being offered and purchased online; and a better array of tools and strategies used by Internet marketers.

      External challenges, such as consumer caution about Internet security, and concerns by business about the effectiveness of Internet advertising, are already being addressed, Boyd said.

      IAB Canada was established as a national association in December 1997. It represents Canada's leading Internet advertisers and marketers.




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