# marketing Market Research Report - Canada

**Generated on:** 2026-07-06 19:00:06.399307  
**Industry:** marketing  
**Geography:** Canada  
**Details:** marketing trends

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# Canada Marketing Trends: Digital Scale, Trust, And Retail Media

## Executive Summary

- **Digital Scale Is The Baseline**: IAB Canada reported Canadian digital advertising revenue of **$18.2B in 2024**, then said the market grew **16% YoY to $21.1B in 2025**; an earlier IAB Canada forecast had expected **$21.2B in 2025** [11] [25] [14] -> Treat digital as the core Canadian marketing infrastructure, not a separate channel.
- **Performance Channels Concentrate Spend**: In 2024, IAB Canada reported digital category shares of **search 43.7%**, **social 29.8%**, **video 12.1%**, and **display 11.0%**, while social grew **26.9%** and video grew **18.4%** [11] -> Fund search and social for demand capture, but protect video and brand channels for future demand creation.
- **Video Attention Is Fragmented**: IAB Canada put 2024 digital video revenue at **$2.2B**, with CTV at **38.1% of video revenue**; MTM reported **77%** of Canadian households had at least one SVOD service in Fall 2025 and **72%** of online Canadians consumed short-form vertical video [11] [31] -> Build cross-screen video plans that combine CTV reach, short-form creative, and frequency control.
- **Retail Media Has High Momentum And Measurement Risk**: IAB Canada measured retail media at **$1.456B in 2024**, up **20.4%**, while an IAB Canada/Mars report citing eMarketer said retail media already accounted for **20%** of Canadian digital ad spending and was projected to surpass **C$3B in 2024** [11] [10] -> Use retail media for closed-loop commerce, but require incrementality, ROAS, and comparable reporting before shifting large budgets.
- **AI Adoption Outruns Governance**: CMDC reporting found **96%** of senior marketers use AI in some capacity, while SAS reported globally that **93%** of marketers had a dedicated GenAI budget for 2025/2026 [12] [2] -> Scale AI only with data rights, brand review, bias testing, and human accountability.
- **Trust Is A Commercial Constraint**: The Competition Bureau states the Competition Act prohibits false or misleading claims, Ad Standards updated influencer guidance in 2025, and CASL requires unsubscribe mechanisms for commercial electronic messages [17] [16] [49] -> Move legal, privacy, and claims review upstream into campaign design.
- **Domestic Media Is A Strategic Tension**: IAB Canada data shows domestic companies held only **6%** of total digital ad revenue in its reporting, and CMDC coverage highlighted concern that ad spend is not sufficiently going to Canadian media [11] [12] -> Balance global platform efficiency with Canadian media investment, cultural relevance, and brand-safety objectives.
- **Multicultural Marketing Needs Measured Resonance**: IAB Canada says multicultural advertising in Canada is moving beyond translated creative, and one cited campaign exceeded benchmarks with **160% higher impressions** and **240% higher engagement** [6] -> Build audience-specific strategies around insight, language, context, and outcome measurement.

## Scope, Definitions, And Market Context

This report covers the Canadian marketing industry with emphasis on marketing trends, paid media, digital advertising, consumer attention, retail media, AI-enabled marketing, compliance risk, and major ecosystem players. The strongest comparable market-size evidence comes from IAB Canada digital advertising data, so the market sizing section should be read as a digital and paid-media view rather than a full estimate of all marketing services, sponsorship, research, CRM, packaging, and in-house marketing labor.

Canada's marketing market is highly digital, platform-led, and performance-measured. IAB Canada, which describes itself as the only trade association exclusively dedicated to the development and promotion of the digital marketing and advertising sector in Canada, is a central industry source for digital advertising data and guidance [26]. The Canadian Marketing Association, Institute of Canadian Agencies, Ad Standards, POCAM, and Sponsorship Marketing Council are also listed among Canadian advertising and marketing industry associations by Ad Standards [27].

The practical planning implication is that Canadian marketing leaders should not divide decisions into a simple digital versus traditional split. The more useful split is between 1) performance platforms, 2) high-attention video and audio environments, 3) commerce and retail-media networks, 4) owned data and consented CRM, 5) earned and influencer channels, and 6) Canadian media and cultural-context investments.

## Canada Ad Spend Crosses $21B As Digital Becomes The Market Core

IAB Canada's reported and forecast figures show a resilient Canadian digital advertising market despite macro pressure. The 2024 survey says digital advertising reached **$18.2B in 2024**, growing **14.3%** YoY, while the 2026 IAB update says the market reached **$21.1B in 2025**, up **16%** YoY [11] [25]. IAB Canada's October 2025 forecast had projected **$21.2B** for 2025, up **16.6%**, so the forecast and later estimate are directionally consistent [14].

| Metric | Latest sourced evidence | Planning implication |
|---|---:|---|
| 2024 digital advertising revenue | **$18.2B**, up **14.3% YoY** [11] | Digital is now the scale channel for Canadian paid marketing. |
| 2025 IAB Canada estimate | **$21.1B**, up **16% YoY** [25] | Growth continued despite economic uncertainty. |
| 2025 IAB Canada forecast | **$21.2B**, up **16.6% YoY** [14] | Forecast variance is small enough to use as trend confirmation. |
| 2024 macro headwinds | Inflation in the **2.9% to 3.5%** range and Canada's Digital Services Tax added pressure [11] | Budget models need media-price sensitivity and ROI proof. |
| Domestic revenue concern | Domestic companies held **6%** of total revenue in the IAB survey's reporting [11] | Platform efficiency can conflict with Canadian media sustainability. |

The market is not simply expanding; it is changing the balance of negotiating power. Global platforms capture the measurable demand signal, while Canadian media owners and agencies compete on trust, context, local culture, and integration. That creates a strategic tension: the most efficient performance buy may not always support Canadian media, cultural visibility, or brand-safe adjacency.

**Decision-ready insight:** Treat the **$21B** digital market as a signal that Canadian marketing strategy is now a portfolio-allocation problem. Invest in performance channels, but reserve a defined share of budget for brand-building, Canadian media, multicultural relevance, and experimental formats where the next performance advantage will emerge.

## Search, Social, Video, CTV, And Audio Reallocate Budgets

IAB Canada's 2024 category shares show a market still anchored by search, but increasingly pulled toward social, video, and commerce-linked media. Search remained the largest category at **43.7%** of digital revenue, but social grew **26.9%**, video grew **18.4%**, and audio grew **13.9%** [11]. The later 2025 IAB update said video grew **26%**, reinforcing that video is becoming a faster-growth planning priority [25].

| Channel | 2024 share of Canadian digital ad revenue | 2024 growth | What it means for marketers |
|---|---:|---:|---|
| Search | **43.7%** | **7.7%** | Essential for capture, but mature and competitive. |
| Social | **29.8%** | **26.9%** | Strong growth, but creative fatigue and platform dependence rise. |
| Video | **12.1%** | **18.4%** | Strong reach and brand-building role, especially with CTV growth. |
| Display | **11.0%** | **10.0%** | Useful for retargeting, contextual reach, and programmatic plans. |
| Audio | **1.4%** | **13.9%** | Smaller base with growth in streaming and podcasts. |
| Classifieds | **1.1%** | **-5.5%** | A declining niche in the broader digital mix. |
| DOOH | **0.8%** | **6.7%** | Small digital share, but relevant for location-based reach. |

Video needs special treatment because consumer behavior and media buying are converging. IAB Canada reported **$2.2B** in 2024 video revenue, with CTV at **38.1%** of video revenue and **86.9%** of advanced TV revenue of **$842M** [11]. MTM's Fall 2025 data shows why: **77%** of Canadian households subscribed to at least one SVOD service, **28%** signed up for specific content and cancelled immediately after viewing, **72%** of online Canadians consumed short-form vertical video, and **61%** multitasked daily on a second device [31] [35].

| Consumer attention metric | Sourced value | Marketing implication |
|---|---:|---|
| Canadian internet users | **38.2M**, **95.1%** penetration in October 2025 [32] | Most audiences are reachable digitally. |
| Social media user identities | **33.0M**, **82.1%** of population in October 2025 [32] | Social is mass reach, not a youth-only channel. |
| SVOD households | **77%** in Fall 2025 [31] | CTV is now mainstream reach inventory. |
| Short-form vertical video | **72%** of online Canadians in Fall 2025 [31] | Creative systems need short-form native assets. |
| Daily multitasking | **61%** of online Canadians in Fall 2025 [31] | Attention quality matters as much as impressions. |

**Decision-ready insight:** The winning Canadian channel plan is no longer a linear funnel. Search captures intent, social and short-form video create attention, CTV restores high-impact reach, audio adds context and frequency, and retail media closes the measurement loop.

## Retail Media Turns Shopper Data Into A Full-Funnel Battleground

Retail media is the fastest-moving structural change in Canadian marketing because it combines first-party shopper data, ad inventory, and transaction-based measurement. IAB Canada's 2024 digital ad survey measured retail media at **$1.456B**, up **20.4%** [11]. A separate IAB Canada/Mars report citing eMarketer said retail media already accounted for **20%** of Canadian digital ad spending, was projected to surpass **C$3B in 2024**, and could reach nearly **C$5.1B by 2027** [10].

The difference between the **$1.456B** IAB line item and the **C$3B** external estimate is itself a market signal. Retail media is expanding faster than common definitions, which means buyers can overpay if they compare networks using inconsistent scopes, attribution windows, or ROAS formulas. Treat the market as directionally large and fast-growing, but negotiate based on measurable incrementality.

| Retail media dimension | Evidence | Buyer risk | Recommended action |
|---|---|---|---|
| Market size | **$1.456B** in 2024 retail media revenue in IAB Canada's survey [11] | Narrow definitions may understate commerce media influence. | Use IAB data for conservative planning. |
| Market share | **20%** of Canadian digital ad spending, per IAB Canada/Mars report citing eMarketer [10] | Broad definitions may mix onsite, offsite, and in-store inventory. | Ask each network to define included inventory. |
| Growth outlook | Projected to surpass **C$3B in 2024** and reach nearly **C$5.1B by 2027** [10] | Growth headlines can mask low incrementality. | Require holdout tests and sales-lift evidence. |
| Named networks | Loblaw, Walmart, Canadian Tire, The Home Depot Canada, Amazon, and Instacart [10] | Network fragmentation makes comparison hard. | Standardize ROAS, sales lift, reach, and frequency. |
| Measurement gap | The report says the landscape lacks consistent measurement frameworks [10] | Advertisers may compare non-equivalent metrics. | Make measurement transparency a buying condition. |

**Case study: Loblaw Media as retail media's Canadian proof point.** Loblaw's retail media network launched in **2019**, and the IAB Canada/Mars report says it reaches **11M online** and **18M in-store shoppers monthly** [10]. Supermarket News reported that Loblaw rolled out **500+ in-store digital screens** in 2023 as part of its expanding retail media network [41].

The decision behind Loblaw's expansion is important: retail media is moving from ecommerce search placements into stores, offsite media, and full-funnel measurement. The outcome is a new competitor set for traditional media owners and a new negotiating layer for CPG brands that already pay retailers through trade, merchandising, and shopper marketing.

**Decision-ready insight:** Retail media should be treated as a shopper-data partnership, not just an ad buy. The best near-term use cases are new product launches, seasonal category pushes, loyalty-segment targeting, and closed-loop sales measurement; the main risk is paying for conversions that would have happened anyway.

## AI-Powered Marketing Moves From Experiment To Operating Model

AI is already mainstream in Canadian marketing conversations, but governance maturity lags adoption. Media in Canada reported that a CMDC report found **96%** of senior marketers use AI in some capacity [12]. The CMA's April 2025 guide, produced with the Vector Institute, frames AI for marketers around safe use and positive business impact, including generative and agentic AI [3].

| AI trend | Evidence | Opportunity | Failure mode |
|---|---|---|---|
| Adoption | **96%** of senior marketers use AI in some capacity, per CMDC coverage [12] | AI can speed research, segmentation, creative versioning, and optimization. | Unreviewed AI output can create brand, legal, or bias risk. |
| Budget commitment | SAS reported globally that **93%** of marketers had a dedicated GenAI budget for 2025/2026 [2] | Global vendor investment will push tools into Canadian stacks. | Canadian firms may buy tools before data readiness. |
| Governance | CMA and Vector Institute issued a 2025 guide on using AI safely for positive business impact [3] | Marketers can standardize safe experimentation. | Governance that is too slow can push AI into unsanctioned shadow use. |
| Media operations | IAB Canada connected AI to creative optimization and predictive modeling in market commentary [14] | Better prediction can improve bidding, targeting, and creative testing. | Models can optimize to flawed attribution or biased historical data. |

The mechanism is straightforward: AI lowers the marginal cost of creating, testing, and adapting marketing assets. That makes more versions possible, but it also increases the volume of claims, visuals, audience segments, and data decisions that need review.

The best operating model is a controlled test-learn-scale system. Start with low-risk tasks such as insight summarization, creative variants, content tagging, and media reporting. Move into higher-risk tasks such as personalization, dynamic offers, and agentic optimization only after legal, privacy, data science, and brand teams agree on approval rules.

**Decision-ready insight:** Canadian marketers should create an AI risk tiering model in 2026 planning. Low-risk internal productivity use cases can scale quickly, but customer-facing creative, claims, personalization, and automated decisioning need documented human review.

## Privacy, Greenwashing, CASL, And Influencer Rules Raise Execution Risk

Canada's marketing risk environment is not dominated by one regulation. It is a layered environment across privacy, spam, environmental claims, influencer disclosure, and consumer-protection expectations. The practical risk is operational: a campaign can be creatively strong but fail because consent, disclosure, claim substantiation, or unsubscribe mechanics were treated as afterthoughts.

| Risk area | Source-supported rule or guidance | Marketing implication |
|---|---|---|
| Environmental claims and greenwashing | The Competition Bureau says the Competition Act prohibits businesses from making false or misleading claims to promote a service, product, or business interest [17] | Sustainability claims need substantiation before launch. |
| Influencer disclosure | Ad Standards says its influencer guidance was updated most recently in 2025 and gives clearer guidance on disclosing gifted products and event invitations [16] | Influencer briefs must specify disclosure language and placement. |
| Commercial electronic messages | CRTC's CASL FAQ says commercial electronic messages must include an unsubscribe mechanism [49] | Email, SMS, and similar campaigns need consent records and functioning unsubscribe flows. |
| Anti-spam law | The Government of Canada CASL site is the official public entry point for Canada's anti-spam legislation [46] | CRM teams should treat CASL compliance as a campaign dependency. |
| Personal information | The Office of the Privacy Commissioner of Canada identifies PIPEDA as the federal private-sector privacy law [47] | Personalization requires clear data-governance and consent practices. |
| Quebec privacy modernization | Quebec's official privacy modernization materials document provincial modernization of privacy legislation Quebec Privacy Modernization | National campaigns need Quebec-specific privacy review. |

The highest-risk marketing areas are those that combine emotional persuasion with weak evidence. Green claims, health or performance claims, influencer endorsements, price promotions, and AI-generated creative all deserve extra review. A failure case does not need to be a scandal: a delayed launch, pulled creative, complaint, or platform rejection can still destroy campaign ROI.

Regulation also changes measurement. As privacy rules and platform policies constrain tracking, marketers need more consented first-party data, modeled measurement, incrementality experiments, clean-room style partnerships, and media-mix modeling. That does not mean abandoning personalization; it means using personalization where the data permission, customer value exchange, and measurement logic are defensible.

**Decision-ready insight:** Build compliance-by-design into campaign workflow. Every brief should include claim evidence, data source, consent basis, disclosure requirements, Quebec applicability, and measurement method before creative production begins.

## Major Players: Platforms, Agencies, Media Owners, Retailers, And Trade Bodies

Canada's marketing ecosystem is bifurcating. Global platforms and retail networks control large-scale data and performance inventory, while Canadian agencies, media owners, trade bodies, and regulators shape local relevance, standards, creativity, and trust.

| Player category | Major examples from sourced material | Role in the market | Strategic watchpoint |
|---|---|---|---|
| Global digital platforms | Google, Meta, Amazon Ads were identified in market coverage as major concentrated platforms; YouTube, Instagram, and TikTok are named by MTM as short-form video platforms [56] [31] | Performance reach, social video, search, commerce, and automated buying. | Platform concentration can reduce buyer leverage and transparency. |
| Retail media networks | Loblaw, Walmart, Canadian Tire, The Home Depot Canada, Amazon, Instacart [10] | Shopper-data activation, onsite/offsite retail ads, sales-linked measurement. | Non-standard ROAS and attribution can distort budget allocation. |
| Streaming and video platforms | Netflix, Amazon Prime Video, Disney+, YouTube, Instagram, TikTok [31] | CTV, SVOD, short-form video, and attention capture. | Fragmentation raises creative and frequency-management cost. |
| Canadian media and measurement organizations | CBC/Radio-Canada, Media Technology Monitor, Numeris [31] | Canadian reach, public media context, audience measurement. | Canadian media investment can lag digital growth. |
| Agencies and creative rankings | Strategy's Creative Report Card 2025 and ICA's Creative Power List 2025 track award-winning Canadian creative performance [37] [36] | Creative differentiation, brand strategy, media integration, local execution. | Award strength does not automatically equal performance effectiveness. |
| Trade bodies and standards organizations | IAB Canada, CMA, ICA, POCAM, Sponsorship Marketing Council, Ad Standards [26] [27] | Standards, guidance, training, compliance, market education. | Standards must keep up with AI, retail media, and privacy changes. |
| Regulators and public authorities | Competition Bureau, CRTC, Office of the Privacy Commissioner of Canada, Quebec government [17] [49] [47] | Rules for claims, email/SMS, personal information, and provincial privacy. | Enforcement and complaints can turn marketing execution into enterprise risk. |

The ecosystem's hidden risk is that each player optimizes a different metric. Platforms optimize auctions, retailers optimize shopper monetization, agencies optimize ideas and execution, media owners optimize attention and context, and regulators optimize consumer protection. Marketers need an integration layer that translates all of these metrics into business outcomes.

**Decision-ready insight:** Do not let vendor dashboards define marketing success. Build a common scorecard across reach, attention, incrementality, sales lift, brand lift, customer value, compliance risk, and Canadian relevance.

## Canadian Case Studies Show The New Marketing Playbook

### Loblaw Shows Retail Media Moving From Screens To Shopper Data

Loblaw is the clearest Canadian case study for the retail media shift. The IAB Canada/Mars report says Loblaw's network launched in **2019** and reaches **11M online** and **18M in-store shoppers monthly** [10]. Supermarket News reported that Loblaw expanded its network with **500+ in-store digital screens** in 2023 [41].

The mechanism is data plus proximity to purchase. Loblaw can sell advertisers the ability to reach shoppers near purchase moments and connect media exposure to commercial outcomes. The risk for brands is that retail media spend can overlap with trade spend and shopper marketing, so the recommendation is to measure incremental sales, not only attributed sales.

### IAB Canada's Multicultural Cases Show Translation Is Not Strategy

IAB Canada says multicultural advertising in Canada is entering a more accountable and integrated phase, driven by immigration and second-generation Canadians [6]. The source states that success now requires more than translated creative or segmented media plans, and one campaign exceeded benchmarks with **160% higher impressions** and **240% higher engagement** [6].

The mechanism is cultural relevance plus measurement. When creative, language, media environment, and audience insight are aligned, campaigns can beat benchmark performance. The failure mode is tokenistic segmentation, where marketers treat multicultural audiences as a media buy instead of a strategy requiring research, community insight, and creative specificity.

### CMDC Highlights The Local Media Investment Tension

Media in Canada reported that CMDC found media leaders concerned that ad spend is not going to Canadian media, and a related CMDC campaign was described as a rallying call to leaders to invest in Canada [12] [57]. This matters because IAB Canada reported that domestic companies held only **6%** of total digital revenue in its survey's reporting [11].

The mechanism is platform concentration: performance budgets move toward the strongest data and auction systems, which are often global. The implication is not that brands should abandon global platforms; it is that they should define when Canadian context, news adjacency, public trust, language, sports, culture, or regional relevance justifies domestic media allocation.

## Synthesis

Canada's marketing market is growing, but the growth is not evenly distributed. Digital ad revenue has crossed the **$21B** threshold, search and social still dominate share, video and retail media are growing faster, AI is changing operating models, and regulation is raising the cost of careless execution [25] [3] [17].

| Strategy | Mechanism | Best evidence base | Trade-off | Time horizon |
|---|---|---|---|---|
| Search and performance social | Captures existing intent and demand | Search **43.7%** and social **29.8%** of 2024 digital revenue [11] | High competition and platform dependence | Immediate to 12 months |
| CTV and digital video | Builds attention across fragmented viewing | Video **$2.2B** in 2024 and CTV **38.1%** of video revenue [11] | Frequency, creative, and measurement fragmentation | 6 to 24 months |
| Retail media | Uses shopper data and sales attribution | Retail media **$1.456B** in IAB survey; other estimates point to much larger scope [11] [10] | Measurement inconsistency and possible non-incremental sales | 6 to 36 months |
| AI-enabled marketing | Lowers cost of analysis, creative variation, and optimization | CMDC **96%** AI use among senior marketers; SAS **93%** GenAI budget globally [12] [2] | Governance, bias, data rights, and brand-safety risk | Immediate to 24 months |
| Multicultural marketing | Aligns audience insight, culture, language, and media context | IAB Canada case material showing **160% higher impressions** and **240% higher engagement** [6] | Requires deeper research and authentic creative development | 6 to 24 months |
| Compliance-by-design | Prevents claims, privacy, influencer, and CASL failures | Competition Bureau, Ad Standards, CRTC, OPC, and Quebec sources [17] [16] [49] [47] | Slower upfront approvals, but lower downside risk | Immediate and ongoing |

The non-obvious tension is that the most measurable channels are not always the most strategically durable. Search, social, retail media, and AI-optimized bidding can improve short-term efficiency, but they can also concentrate spend in platforms that own the data, auction rules, and measurement environment. Canadian media, multicultural strategy, CTV, audio, and brand-building may be harder to attribute, but they protect reach, reputation, cultural relevance, and future demand.

The recommended portfolio for 2026 planning is a barbell. Put disciplined budget into performance channels where incrementality is proven, and put protected investment into video, Canadian media, multicultural relevance, and owned-data assets. Around that barbell, build a governance layer for AI, privacy, claims, influencer disclosure, and measurement so the organization can move quickly without creating avoidable legal or trust risk.

## Recommended Actions For Canadian Marketing Leaders

1. **Create a Canadian media scorecard.** Include reach, attention, incrementality, Canadian context, brand safety, ROAS, sales lift, consent quality, and compliance risk in one planning view.
2. **Separate retail media tests from retail media scale.** Test with holdouts and category-level sales lift; scale only when the network can prove incrementality and transparent attribution.
3. **Build a cross-screen video system.** Produce CTV, social video, vertical short-form, and cutdown assets from the same strategic idea, then manage frequency across platforms.
4. **Operationalize AI governance.** Classify use cases by risk, require human review for customer-facing output, and document data rights for training, prompts, and generated assets.
5. **Use multicultural strategy as a growth lever.** Start with audience insight and community relevance, not translation; measure engagement, lift, and long-term brand impact by segment.
6. **Move compliance upstream.** Add claim substantiation, influencer disclosure, consent basis, Quebec privacy review, CASL unsubscribe checks, and data-use approval to campaign briefs.
7. **Plan for measurement resilience.** Use media-mix modeling, incrementality testing, consented first-party data, and clean-room or retailer partnerships where direct tracking weakens.

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