Canadian Adverising Industry
Section: Marketing Essays
So Canada could be easily influenced or even controlled by the United States. The United States does tend to exploit its' greater power and affect relations between the two countries. The function of advertising is to develop awareness and recall of a product or service that results in market increase. Canada uses all of the same mediums as the United States, to expose the consumer of products and services. In 1993 the gross advertising revenues for all media reached $9.0 billion. Newspaper advertising accounts for 26.8 percent of this total revenue. Radio and television make up 27 percent of the total. Catalogues and direct mail account for 21.8 percent, periodicals use 15.9 percent and outdoor and miscellaneous uses the remaining 8.5 percent (Strategies). (See pie chart) All of the advertising in Canada can be divided into two components, local and national advertising. Local advertising represents about sixty percent of all media (about $5.4 billion) (Strategies). This advertising is placed into the industry by a companies' media representative and usually does not require the help of an advertising industry. National advertising accounts for the remaining forty percent of all the media (about $3.6 billion) (Strategies). This component is responsible for the revenues of the advertising agencies. Large businesses, which market their products worldwide, are a part of national advertising. Ad agencies coordinate the production, creation, and placement of the advertising. Television is the primary medium, but not exclusively. Print media such as direct mail, catalogues, magazines, newspapers, and radio are also vehicles used in national advertising.
There isn't one national newspaper or magazine for Canada because it is so large. This is the main reason why the Canadian advertising industry will spend more on broadcast media, such as television and radio. The CBC is a major broadcasting corporation of Canada. These vehicles have national broadcasts for the country (Grabowski). The consumer is able to listen to a station or watch a program or newscast that is nationally recognized and available. This type of media will reach a larger group of consumers. The structure of advertising in Canada is very important to understanding the industry. Canadian advertising agencies have restructured themselves to meet customers' demanding needs. Agencies are becoming more productive by establishing separate subsidiaries that provide different services. They have developed separate departments to meet the individual needs of each company. There are fifteen top agencies in Canada and thirteen of them are foreign owned, compared to 1960 when only three of them were (CASI). This is because Canadian owned agencies are domestically oriented and are at a disadvantage in attracting international advertisers as clients, for a fear that they cannot produce results that are accepted internationally. Most Canadian firms handle the local or small accounts that are advertising primarily in the country. This directly affects the highest possible revenue a Canadian owned agency might get. The foreign owned agencies will therefore receive all of the top advertisers' as clients. These will also bring in the highest revenues.
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