Total advertising expenditure

By 2025, total advertising expenditure in Canada is estimated to rise to $15.9 billion, supported by a compound annual growth rate of 3.0% from 2020 to 2025. Advertising expenditure closely mirrors economic activity and business confidence fluctuations. The COVID-19 pandemic significantly impacted these aspects in 2020, causing a 6.0% decline in advertising expenditure due to reduced corporate profits and a downturn in consumer spending. Government-imposed social distancing measures and lockdowns further exacerbated these effects, constraining business activity. Although the economy swiftly recovered, the subsequent rise in inflation rates led to increased interest rates, suppressing consumer demand. Consequently, the subsequent years saw fluctuations in advertising expenditure, with declines of 5.4% and 1.5% in 2023 and 2024, respectively. Nonetheless, a projected increase of 1.3% in 2025 signaled a rebound as economic stability returned, fostering renewed business investments in advertising.

During the 2020-2025 period, digital media played a critical role in shaping advertising strategies. By 2024, it accounted for approximately 64.0% of total advertising expenditure, underscoring its dominance over traditional platforms such as television and newspapers. Despite these changes, consumer trust in traditional media formats persisted, influencing advertisers to cater to older demographics through these channels. This demonstrated the enduring impact of consumer preferences on advertising allocation decisions.