Social media advertising spend in Canada is set to grow at a CAGR of 48.9% during 2014–2018 to reach US$1.4 billion by the end of 2018, up from an expected US$472 million in 2014. Social media ad spending presently accounts for 11% of the total online advertising spend. Historically, social media advertising spending in the country, during 2009 to 2013, grew at a CAGR of 70.5% to reach US$338.3 million, accounting for 8.8% of total online advertising. Social media ad spend this year is expected to increase by 39.4% to reach US$471.7 million in 2014.
Canadian consumers have historically been among of the early adopters of the Internet and broadband technology. With nearly 87% of households connected to Internet in Canada, the country ranks second in internet penetration globally. With an estimated 20 million social media users in Canada, which is about 56% of the total population, Canadians spend a fourth of their total internet time on social networks. This figure is expected to grow to 22 million social media users by 2018. Facebook is used by almost 87% of social network users, making it the most popular social networking site in Canada. Other popular sites include Tumblr, Twitter, and LinkedIn. Demographically 18 to 24 years olds are the biggest users of social media, followed by users who are 18 years and under.
Online advertising revenue in Canada increased from $3.4 billion in 2013 to over $3.9 billion in 2014, reflecting a 14.5% growth. Going by the trend discussed above, marketers are increasingly making social media a focal point of their marketing campaigns. One good example is Johnson's Baby, who launched a baby photo contest on Facebook, in which users in Canada were offered a chance to have their infant photos featured on Johnson's site. Through this campaign the company’s Facebook page increased its fan base by nearly three times, received more than one million visits, and more than 3.5 million photo views.
WestJet Canada’s Christmas Miracle video was very positively received and has been shared 37 million times on YouTube.