We all know our neighbors to the north are a bit on the strange side, what with the strange bacon, interesting law enforcement uniforms and of course, the accent. But are they so different that their belief in online video advertising varies widely from us here in the States? The answer, apparently, is yes.

eMarketer took a look at digital ad spends up in the Great White North and estimated that it will top $2 billion this year, which is under ten percent of the US market value. It comes out to some $81 per Internet user up there, they [eMarketer] say.

In a related study, IAB Canada said that it could be as much as $2.23B. But the IAB said that while online video advertising showed strong growth, 85%, it just isn't all that popular up there and last year only accounted for $37 million. That's just 2%, almost a third of what it accounts for here in the US (5.5%).

So what's the deal?

Well, remember all the issues with the Netflix expansion up there? Internet users were concerned about hitting bandwidth limits because the broadband packages up there are mostly metered. Now some might say that is bullpuckey and video ads don't take up all that much bandwidth and they might be right. But when you're starting to use more and more online video, as Canadian Internet users are these days, and you've got a bandwidth cap to worry bout...well that could be a problem.

However, that doesn't seem to be the crux of the issue, it seems that advertisers and clients just aren't looking at it as a viable solution for them. But perhaps they should. Right now, with so little competition, you could probably get your brand in front of a lot of Canadian Internet users in short order and for probably both a good price and some premium placements easily enough.

  • Peter Matejcek

    Chris, the problem is the ISP have to cap the bandwidth because line heats up and melts the walls of the igloos..... k Canuck humour aside. Were're 10% of US, have an oligopoly for ISP ( I can get a better deal at my dentist), and your totally right.. it's a market to be tapped. But Netfilx and others opening up ( wish I had Pandora) will only help.