Canadian advertisers to see the biggest drops in sales in 2016

Canada’s largest online advertisers are likely to see their sales fall by up to half over the next year, a Reuters/Ipsos poll showed on Thursday, citing a Reuters survey of 500 Canadian online advertisers.

The online ad industry is a $7.9 billion sector, according to Reuters data.

It accounted for more than a third of Canada’s online advertising revenues in 2016, according the survey, with about half of the ad revenue coming from mobile ad networks, a quarter from ad agencies and another third from search advertising.

Advertising revenue in Canada is estimated to be about $11.7 billion, according Reuters data, up from about $8.4 billion in 2015.

The Reuters/ICF International Internet and eCommerce survey, conducted on June 6-9, shows ad sales for Canadian online brands, including online brands based in Canada, fell by about 9 percent last year.

In the past year, Canada has seen sales growth of about 4 percent, the survey found.

According to the survey of advertising executives, the largest declines will be for advertisers based in the United States, Mexico and Germany, which accounted for 16 percent of total online ad revenues last year, and 20 percent in 2015, the company said.

The U.S. ad market is expected to shrink in 2016 from the $6.5 billion it saw in 2015 and is expected “to remain the biggest single market for online advertising in 2016,” the survey said.

Advertisers based in Mexico, Canada, Australia and New Zealand “are expected to see a drop in online advertising revenue of more than 30 percent.”

The survey also found that Canadian marketers are “fear[ing] that the digital ad market will suffer another drop in 2017,” as the digital advertising industry faces “significant challenges in maintaining its position in the marketplace,” the company added.