Recovery and rebound expected in Canadian advertising, says PwC

The entire Canadian entertainment and media market declined by 2.7% in 2009, in the teeth of a recession, but is expected to rebound this year and grow at an annual average compounded rate of 5% through 2014, according to the consulting firm Pricewaterhousecoopers (PwC). Its Global Entertainment and Media Outlook has just been published and contains data which indicates that the E & M market will grow faster in Canada (5%) than in the U.S.(3.8%).

Overall consumer end-user spending on media, excluding internet access spending, will increase in Canada at a rate of 4.3% CAGR (3.7% in the US and 4.1% globally), while advertising will rise at a 3.1% CAGR (2.6% in the US and 4.2% globally).

Jerry Brown, an associate partner with the Canadian Entertainment and Media practice said in a company release:

"“The next five years will see digital technologies increase their dominance across all segments of entertainment and media as digital transformation accelerates. While the industry has a long history of experimenting and adding formats that have offered consumers new choices, the current advances in technologies and consumer behaviour are unprecedented in both their speed and their simultaneous impact across all segments.”

The report said the Canadian advertising market will see continued recovery:

In Canada, consumer spending on digital media will grow quickly, complimenting spend on traditional forms of media. However, in the music, newspaper and magazine publishing industries, digital media is presenting new business challenges as overall traditional revenues are slowly declining. However, Canadian consumers will still spend over US$3.3 billion on these segments which is a substantial part of the total spend.