Canada is now the biggest advertiser in the world for mobile apps, according to an analysis of data from the OTT Advertising Alliance, a leading independent technology company.
The Canadian firm says Canada has surpassed the United States, the United Kingdom and Japan as the world’s second-largest mobile ad market, behind the United Arab Emirates.
The top two countries in the OTA market are Canada and the United Republic of Tanzania, which according to data compiled by the OTOY report, has an estimated 4.3 billion users, and an estimated $1.3 trillion in revenues.
The report, released Wednesday, shows the number of apps sold in Canada reached an all-time high in 2016, with a total of 1.3 million mobile apps being sold in the country.
The OTT advertising alliance says there are more than 6,000 companies operating in Canada.
“Mobile advertising is booming in Canada,” said Greg Thompson, senior vice president of OTT ad technology at the OTD.
“There are so many opportunities in Canada to grow your brand and be a leader in the digital world.”
Canada has seen a surge in its ad sales and growth in the smartphone market, which is expected to double this year, the OTM report says.
The growth has been fueled by mobile ad revenue from the smartphone app, which now accounts for more than half of all mobile ad sales in Canada, and by a surge of online ad revenue, as smartphone users increasingly rely on apps.
The company also expects that the growth in smartphone advertising will continue, even as smartphone owners opt for apps over websites.
“As we continue to see growth in this space, we are seeing an increase in mobile advertising revenue growth and that’s not going to stop,” Thompson said.
In 2016, mobile ad revenues reached $1 billion, an increase of nearly 20 per cent compared with 2015.
The industry’s biggest players, Google and Facebook, each saw a surge last year in ad revenue as smartphone ownership continued to grow, the report said.
“I think we’re seeing an opportunity in Canada right now,” said Jason Gagnon, executive director of the Canadian Chamber of Commerce and Industry.
“It’s the right time for the province to be the leader in this area.”
In fact, the Canadian government has made a commitment to build a national ad policy.
In 2015, then-premier Stephen Harper announced a national advertising policy that would include digital ads, which would be the main focus of the ad-focused policy of Justin Trudeau.
Trudeau is now in the prime minister’s office, and Thompson said that the policy will be rolled out in stages.
The province will begin with ads targeting Canadian-born people and families, followed by other groups that the OTEB says will be important to Canada’s future success.
The provincial government will also continue to work with advertisers on new ways to reach Canadians, including partnerships with social media platforms and other digital channels.
For now, the province’s strategy will be focused on targeting younger Canadians, the government says.
“Ads for young Canadians, which are the most likely to spend more time using social media and use mobile devices more frequently, will be a big focus for us,” said Thompson.
“We know the younger generations are going to be much more active online and are going be much less likely to be watching TV or using the internet.”
The province says it has already taken steps to address the issues highlighted by the report, including creating a national platform for advertising and making it easier for advertisers to target audiences that are eligible to receive free services such as TV, radio, and radio and print ads.
The government also said it is investing in digital ad targeting and has made it easier to manage the advertising budget for digital media, a strategy that will help ensure that ads can reach the most people.
“The OTT industry is seeing incredible growth in both the mobile and online space and is looking forward to growing and competing in this new arena,” Thompson added.
The full report can be read at the nextbigfuture.ca/2016-06-21.