Automotive Brands are Leading in Real-Time-Bidding Ad Spend in Canada

by Mike Tyler | January 19, 2015


In America, the leading industry in real-time-bidding ad spend is retail at 32% of the total money spent on video advertising. In second place is the automotive industry with only 13%. Telecom (12%) and Financials (11%) follow.

Editor’s Note: Real-time bidding accounts for 50% of all Video Advertising spendings.

On the flip side, in CANADA, land of the true north strong and free, the automotive industry accounts for 26% of the total video advertising spend. Second place is retail with 22%.

So why the difference? Why are Canadian car companies spending so much more than their American counterparts?

Julia Casale-Amorim, the CMO at Casale Media, says “It was a little startling to see how strong automotive was in Canada, based on our historical data on the U.S. market, where we’ve seen retail as the frontrunner since we first started tracking data.”

She doesn’t explain why, and for us, a guess is all we can muster. And guess we shall.

OUR PREDICTION

It isn’t that automotive spendings are abnormally high. Rather, it is the fact that retail video advertising spendings are low. In Canada, the majority of spendings are from several mega companies (the auto ones). This means that the reason so little is being spent on retail is because not a lot of retailers are using it.

We assume the reason that not many Canadian retailers are not using it because they haven’t quite caught up with the value and importance of doing so. This is not terribly surprising as Canada is often a few years behind in the development curve compared to the USA.

If we are take anything away from this, it’s probably that we will see an increase in spending by retailers in the future. Maybe then the numbers will balance themselves out a bit.

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