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November2010

Executive Summary: Canadaboastssomeofthehighestinternetpenetrationandsocialnetworking

usageratesintheworld.Socialnetworkusersviewsocialmediaastheironlinehome—ahubfor

communication,entertainmentandinformation.

121176

Canadiansreadilyadoptsocialnetworkactivities,oftenatrateshigherthanusersintheUS,butgainingthetrustofusersona

socialnetworkisabrandmanager’sbiggestobstacle.

AsCanadianusershavegrownmorefamiliarwithsocialmedia,

theyhavealsobecomemoreacceptingofadvertisinginthe

space.Incorporatingstrategiesthatinvolvesocialmediaintothe

everydayhabitsofuserscandriveengagement,benetingboth

thebrandandsocialnetwork.

Key Questions

■ HowmanypeopleinCanadausesocialmedia?

■ WhatarethedemographicsofsocialmediausersinCanada?

■ HowmuchtimeareCanadiansspendingwithsocialmedia?

■ Howdousersinteractwithbrandsonsocialmedia?

■ Whatarebestpracticesforsocialmediamarketing?

The eMarketer View 2

Canada Internet User and Online Ad Refresher 2

Social Media Usage 3

Engaging Consumers with Social Media 6

Looking Ahead 9

Conclusions 9

Endnotes 10

Related Information and Links 11

millions and % of internet usersSocial Network Users in Canada, 2008-2014

2008

11.4(46%)

2009

13.6(54%)

2010

15.1(59%)

2011

16.1(62%)

2012

16.9(64%)

2013

17.7(66%)

2014

18.4(68%)

Note: social network sites include sites where social networking is the primary activity (e.g., Facebook, MySpace, LinkedIn), social network siteslinked to portals such as Google and niche social network sites devoted to a specific hobby or interest Source: eMarketer, Oct 2010

121176 www.eMarketer.com

Mike Froggatt [email protected]

Canada Social MediaMarketing



Canada Social Media Marketing 2®

The eMarketer View

121483

Key eMarketer Numbers: Canada Social Media

27.1 million Internet users in 2014, up from 25.7 million in 2010

18.4 million Social network users in 2014, up from 15.1 millionin 2010

68% Social network users % of internet users in 2014,up from 59% in 2010

$3.69 billion Online ad spending* in 2014, up from $2.11 billion

in 2010Note: *in Canadian dollars

Source: eMarketer, Nov 2010

Canada boasts one of the most mature online

markets in the world.Canadianinternetusersin2010will

total25.7millionandby2014riseto27.1million,nearly78%

ofthetotalpopulation.Onlineadspendingin2010willreach

CAD2.11billion($1.85billion)andby2014willincreaseto

CAD3.69billion($3.24billion),morethan27%oftotal

mediaspending.

A majority of internet users in Canada are on social

networks.In2010,eMarketerestimatedthat59%ofinternetusersusedasocialnetworkatleastonceamonth,agure

settoriseto68%by2014.Theseincludeusersonprimary

socialnetworkslikeFacebook,MySpaceandLinkedInaswell

asportal-linkedsocialnetworksandnichesitesforspecic

interestgroups.

Social network users are beginning to expect and

appreciate targeted ads, but brands have to tread

carefully.AccordingtoasurveybyTrendstream,32%of

internetusersagreedthattargetedadvertisingimproved

theiropinionofabrand.WhileVisionCriticalfoundthat77%

ofinternetuserswereconcernedwithprivacyonsocial

networks,advertiserawarenessandregulationchangeswill

helptoaddressconcerns.Facebook,forexample,promisedto

implementenhancedprivacyprotectionsafterconcernswere

raisedbyCanada’sprivacycommissioner.

Social media marketing is an essential tool for

online brand managers.Asinternetusersincreasethe

timetheyspendonsocialnetworks,socialmediaaccounts

foranincreasingshareofadimpressions.Pricesremainlow

becauseofabundantinventory,butincreasingbudgetsand

competitionforinventorywilldrivepricesupinthefuture.As

aresult,nowisthetimeforbrandmanagerstotestnewsocial

mediacampaignsonusers.

Canada Internet User and OnlineAd Refresher

InternetusageinCanadahasreacheda

saturationpoint.eMarketerestimatesthat25.7

millionpeoplewillgoonlineatleastoncea

monthin2010,foratotalpenetrationof75.9%.

Growthwillremaingradualandtherewillbe27.1

millionusersand77.9%penetrationby2014.

121118

millions and % of populationInternet Users and Penetration in Canada, 2008-2014

2008

24.7(74.5%)

2009

25.2(75.2%)

2010

25.7(75.9%)

2011

26.0(76.5%)

2012

26.4(77.0%)

2013

26.8(77.5%)

2014

27.1(77.9%)

Note: an internet user is a person of any age who uses the internet from any location at least once per month Source: eMarketer, Oct 2010


Bycomparison,internetpenetrationintheUSwas71.2%

in2010.




OnlineadvertisinginCanadahasgrownatdouble-digitrates,

rising13.7%in2009.Thatgrowthwillcontinuethrough2014.

121117

billions of Canadian dollars and % changeOnline Ad Spending in Canada, 2008-2014

2008

1.60

2009

1.82

(13.7%)

2010

2.11(16.0%)

2011

2.43

(14.8%)

2012

2.91

(19.8%)

2013

3.27

(12.5%)

2014

3.69

(12.9%)

Note: includes paid search, display, classified/directories, email and onlinevideo. 2009 figures include ads within video games; converted at average 2009 exchange rate (US$1=1.14 Canadian dollars) Source: eMarketer, Sep 2010


For additional information on this chart, see the Endnotes section.

Totalonlineadspendingisexpectedtomorethandoublefrom

CAD1.82billion($1.60billion)in2009toCAD3.69billion($3.24

billion)in2014,acompoundannualgrowthrateof15.2%.

Bycomparison,onlineadspendingCAGRduringthesame

periodintheUSwillbelowerat9.8%.

For more inormation on internet usage and onlinemarketing in Canada, see eMarketer’s October 2010report “Canada Advertising and the Online Consumer.”

Social Media Usage

AmajorityofinternetusersinCanadahave

alreadytakentosocialnetworks.eMarketer

estimatesthat59%ofallCanadianinternetusers

and44.8%ofthetotalCanadianpopulationare

onsocialnetworksin2010.Morethanhalfofthe

totalpopulation,53%,isexpectedtobeactiveon

socialnetworksby2014.

121176

millions and % of internet usersSocial Network Users in Canada, 2008-2014

2008

11.4(46%)

2009

13.6(54%)

2010

15.1(59%)

2011

16.1(62%)

2012

16.9(64%)

2013

17.7(66%)

2014

18.4(68%)

Note: social network sites include sites where social networking is the primary activity (e.g., Facebook, MySpace, LinkedIn), social network siteslinked to portals such as Google and niche social network sites devoted to a specific hobby or interest Source: eMarketer, Oct 2010


Thenumberofpeoplevisitingsocialnetworksatleastoncea

monthis15.1millionin2010,risingto18.4millionin2014.

AnIpsosReidsurveyofCanadiansshowedthat55%ofonline

adultsages18andolderhadasocialnetworkprole.Similarly,

comScoreMediaMetrixfound52.4%ofinternetusershad

visitedasocialnetworkdailyinSeptember2010.

121241

% of internet users

Comparative Estimates: Social Network Usersin Canada, 2010

eMarketer, Oct 2010

Ipsos Reid, June 2010

comScore Media Metrix*,Oct 2010

Trendstream & LightspeedResearch, June 2010

Vision Critical, Sep 2010

% of internetusers

59.0%

55.0%

52.4%

49.0%

45.0%

Age

All ages

18+

2+

16-64

18+

Usage

Use at leastonce per month

Have a profile

Daily visitors

Managed profile inthe past month

Daily users

Note: *eMarketer calculations Source: eMarketer, Oct 2010; various, as noted, 2010


For additional information on this chart, see the Endnotes section.

http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2000733







TrendstreamandVisionCriticalreported49%and45%,

respectively,ofinternetuserssurveyedwereonsocialnetworks.

comScoreestimatedmonthlyvisitorstosocialnetworking

websiteshadapenetrationrateof95%.comScore’spanel

datameasuresanyonewhovisitsasocialnetworkdomain,

notnecessarilyactualusersofthesite,whichiswhy

eMarketerincludeddailyvisitorsinitscomparativeestimate

insteadofthemonthlygures.

AsintheUS,FacebookstandsheadandshouldersaboveothersocialnetworkingsitesinCanada.

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Usage Metrics for the Top 10* Social Media Sitesin Canada, Sep 2010

1. Facebook

2. Windows Live Profile

3. Twitter

4. LinkedIn

5. MySpace

6. DeviantART

7. Yahoo! Pulse

8. Skyrock

9. Digg

10. Classmates.com

Total social networking category

Total internet audience in Canada

Uniquevisitors

(thousands)

20,601

6,652

3,268

2,530

1,890

1,107

992

835

719

546

23,651

24,905

Averagedaily visitors(thousands)

9,639

543

344

208

123

97

67

68

54

27

12,220

23,323

Averageusage daysper visitor

14.0

2.4

3.2

2.5

1.9

2.6

2.0

2.5

2.3

1.5

15.5

28.1

Averageminutes

per visitor

339.8

4.9

22.2

15.4

11.2

24.8

4.1

20.8

2.2

3.8

319.0

2,175.6

Averagepages

per visitor

645

11

30

32

23

41

9

43

5

7

611

3,091

Note: ages 2+; home and work locations; excludes traffic from publiccomputers (i.e., internet cafes) and access from mobile phones and PDAs Source: comScore Media Metrix, provided to eMarketer, Oct 27, 2010


AccordingtocomScoredata,Facebookdominatedthesocial

networkmarketinCanadawith9.6millionaveragedailyusersin

September2010.WindowsLiveProle,theNo.2site,registered

only543,000averagedailyusersinthesamemonth.

HitwisefoundthatFacebookhadmorethana65%shareof

trafctosocialmediasitesduringtheweekofOct.23,2010.ThenexthighestsitewasYouTubewitha20%share.Noother

siteinthesocialmediacategorybrokethe1%sharemark.

Socialnetworks,especiallyFacebook,areheretostayin

Canada.Toincreasetheexposureoftheirbrands,marketers

musttakeadvantageoftheimpactthatsocialnetworkinghas

hadoninternetuseinCanada.

Social Media Demographics

Socialmediausageisincreasingamongeverydemographic

groupinCanada,butyoungerusersarestillmorelikelytobe

activeonsocialnetworks.Trendstream’s“GlobalWebIndex

Wave2”estimatedthat64%ofusersages16to34manageda

socialnetworkprole.Usagedroppedto41%amongusers35

to54and29%forusers55andolder.

In2009,comScorereportedthat29%ofsocialnetworkvisitors

were18-to34-year-oldsand44.7%wereadultsages35to64.Socialnetworkuserswereevenlysplitbygender.

117080

% of total

Demographic Profile of Social Network Users inCanada, 2009

Note: numbers may not add up to 100% due to rounding; monthly uniquevisitors to all social sites Source: comScore Media Metrix, "Canada Data," 2009; provided toeMarketer by Starcom MediaVest Group, June 1, 2010


65+5.2%

Gender Age

Income (CAD)

Male49.6%

Female50.4%

2-1721.1%

18-2411.0%

25-3418.0%

35-6444.7%

<60K45.3%

60K-75K12.9%

75K-100K19.1%

100K+22.7%

Amajorityofsocialnetworkvisitorsmakeupthelower-

incomebracketsinCanadabecauseofthehighpercentageof

youngerusers.However,comScoreidentied22.7%ofvisitors

withanincomeofCAD100,000ormoreperyear.

AccordingtoCheckFacebook.com,Facebookuserswerea

bityoungerthancomScorereportedfortheoverallsocial

networkingcategory.AsofNovember2010,users24and

youngermadeup37.5%ofFacebookusersinCanada,while

users25to34followedat25.4%.




Socialnetworksusersoftenprovidedemographicdatawhile

signingup,offeringawealthofinformationnotavailable

anywhereelse.Inmostcases,networksoffertoolstohelp

marketerstargetadsbasedonthatdata.Effectivetargeting

canoftenmakethedifferencewhenitcomestoconsumers

relatingto—andultimatelypurchasing—productsorservices

featuredinads.

Time Spent on Social Networks

comScorefoundthattheaverageuserspent5.3hourson

socialnetworkingsitesduringSeptember2010.Facebook

usagecameinslightlyhigher,averaging5.6hoursperuser.

Accordingtoitsreport,“The2009CanadaDigitalYearin

Review,”internetusersinCanadaledtheworldwithan

averageof40socialnetworkingsitevisitspermonth.Engaging

thiscaptiveaudienceshouldbehighonthelistofanyonline

marketer’splaninCanada.

AnAccenturesurveyshowedthatfrom2008to2009,

employedmillennialinternetusers(ages18to27)spent

moretimeonsocialnetworkingwebsitesthancomScore’s

September2010dataindicated,at2hoursperweek,alittle

over8hourspermonth.

121917

hours

Time Spent Using Social Media Tools per Week byMillennial* Internet Users in Canada, 2008-2009

Social network sites 2.0

Virtual communities0.4

Blogging or Twitter0.2

Note: *ages 18-27, employed Source: Accenture, "Jumping the Boundaries of Corporate IT: AccentureGlobal Research on Millennials' Use of Technology," Feb 10, 2010


Addingintimespentonvirtualcommunities,blogsand

microblogslikeTwitter,Acccenturefoundthatmillennialsin

Canadaspent2.6hoursperweek,ormorethan10hoursper

month,onsocialmedia.

Inits“ConsumerologyReport:TechnologyandCanadian

Consumers,”BensimonByrnereportedthat24%ofFacebook

usersages18to34spendatleast1hourdailyonthesite,

comparedwithonly15%ofallusers.

120043

% of respondents

Facebook Users* in Canada, by Age & Gender, Nov2009

Gender

Female 16%

Male 13%

Age

18-34 24%

35-54 13%

55+ 7%

Total 15%

Note: *used for 1+ hours yesterday Source: Bensimon Byrne, "Consumerology Report: Technology andCanadian Consumers" conducted by The Gandalf Group, Jan 1, 2010


IpsosReidreportedthatFacebookuserssentanaverageof

15.7messagesaweek,and13%sentmorethan25.

121687

% of internet users

Average Number of Emails/Messages Sent Weekly viaTwitter or Facebook in Canada, Q1 2010

0

4%

17%

1

9%

15%

2

14%

14%

3

13%

11%

4-5

21%

12%

6-10

15%

8%

11-25

13%

7%

25+

13%

15%

Facebook Twitter

Note: numbers may not add up to 100% due to rounding; average number of messages sent on Facebook=15.7 and Twitter=11.5 Source: Ipsos Reid, "Ipsos Interactive Reid Report" as cited in press release,

June 29, 2010121687 www.eMarketer.com

IpsosReid’ssampleofTwitteruserswassmallerandless

activethanitssampleofFacebookusers,butfrequent

tweeterscarriedthelaggards.Consideringthat78%ofTwitter

userstweeted10orfewertimesweekly,the15%thatdid

tweetfrequentlyboostedtheaverageto11.5tweetsaweek.




Theviralaspectofsocialnetworkscannotbeignored.

Frequentusersofsocialnetworks,the13%ofFacebookand

15%ofTwitteruserswhosentover25messagesperweek,

canbepowerfulampliersofamarketer’smessage.However,

directcommunicationwithusersrequiresseriousinvestment,

whetheritisadedicatedsocialmediamanagerorevenan

entireteam.

Thereisnoquestionthatmarketersshouldengagethesehigh-

frequencyusersonsocialnetworksinordertoincreasetheirexposureonline.Butadvertisingisaboutmorethanexposure,

andmarketersshouldalsousesocialmediaasacommunication

channeltoengageandbuildtrustwiththeircustomers.

Engaging Consumers withSocial Media

Marketersndsocialnetworksattractivefor

severalreasons,butthebottomlineisthat

word-of-mouthbetweenfamilyandfriends

iscontinuouslyrankedamongthehighest

inuencersofproductpurchases.

Socialnetworksbydesignprovideaplatformfortwo-way

communicationbetweenbrandsandconsumers.

“We aren’t approaching social media as aplatform to advertise. We are currently usingsocial media as an open communicationsforum—to listen to and address Canadians’

expectations of us.” —Mark Nicholson, head of online

experience at ING Direct, in an interview with Facebook

Insight, October 2009

Whilesocialmediamarketingcanbedifcultandtime-

consuming,therewardsarehigh.“Socialmediamarketing

thatearnsitswayintotheconversationbetweenfamily

andfriendscanbepowerful—familyandfriendsdeliver

muchhigherlevelsoftrustthananymedia,”VisionCritical,

amarketingresearchrmbasedinCanada,saidin“Online

SocialNetworks:TrustNotIncluded.”Marketersshouldmake

establishingtrustapriorityinanycampaignundertakenwith

socialmedia.

Inaddition,socialmediaenablesbrandstotrackhowcustomerspassdirectedmessagesandtargeted

advertisementsontofriendsandfamilyinrealtime.No

otheradvertisingallowsmarketerstoobservethiseffect,

whichincreasesthevalueandimportanceofsocialmedia

advertisingamongamarketer’srepertoireofoptions.




InitsreportcoveringCanada,theUKandtheUS,VisionCritical

foundthatgainingconsumertrustthroughonlinesocial

networkscannotbetakenforgranted.InCanada,only10%of

consumerstrustedsocialnetworksand4%trustedforums,

blogs,reviewsandchatrooms.

121780

% of respondents

Consumers in Canada Who Trust Select Media, by Age,March 2010

18-34 35-54 55+ Total

Broadcast radio 45% 56% 49% 50%

Print newspapers 47% 48% 38% 45%

Online news 34% 43% 34% 38%

TV 28% 40% 41% 37%

Print magazines 32% 33% 22% 29%

Online social networks 11% 12% 6% 10%

Online forums, blogs, reviews or chat rooms 5% 4% 2% 4%

Note: respondents who say the medium is "completely" or "very trustworthy" Source: Vision Critical, "Online Social Networks: Trust Not Included," Sep15, 2010


Thegoodnewsisthatthe18-to34-year-oldswereslightlymore

likelytotrustsocialmediasources:11%trustedsocialnetworksand5%trustedforums,blogs,reviewsorchatrooms.

Trendstream,initsongoing“GlobalWebIndexWave2”report,

surveyedusersaboutoptionsavailableformarketerstrying

toimproveuseropinionsoftheirbrandonsocialmedia.

Respondentssaidthatfriendingabrand,usingtargeted

advertising,creatinggroupsandsponsoringrelevantmusic

andblogswerethemostlikelytacticsthatwouldimprove

theiropinionofabrand.121143

% of respondents

Social Media Marketing that Improves Their Opinionsof Brands According to Internet Users in Canada, Jan 2010

Becoming your friend in a social network

38%

Using targeted advertising

32%

Creating groups in social networks

21%

Sponsoring music downloads

21%

Sponsoring blogs

19%

Talking to bloggers directly

17%

Building a community where consumers and brands interact

16%

Creating branded online videos

16%

Creating company blogs

12%

Listening to people's comments12%

Building a social network page

11%

Contacting me when I tweet about them

4%

Source: Trendstream and Lightspeed Research, "Global Web Index Wave 2" as cited in company blog, July 6, 2010


Whilefriendingusersisthetop-rankedoption,Mashable,asocia

anddigital-media-focusednewsblog,advisesmarketersnotto

blastuserswithfriendrequestswithoutpermission.Evidence

showsthatincludingusers’friendswholikedabrandoradinthenewsfeedandunderdisplayadsincreasedthelikelihoodofusers

engagingthebrandonFacebook.




Engagementincreasesasusersbecomemorefamiliarwith

socialnetworksasawhole.VisionCriticalreportedthat54%

ofuserswhovisitedsocialnetworksdailythoughtthatonline

socialnetworksweregoodplacesforbrandstoadvertiseto

consumers,comparedwith43%oftotalconsumers.Another

35%ofdailysocialnetworkuserssaidtheyenjoyedbrand

informationthatwaspushedtothemthroughtheirnetwork.

121400

% of respondents

Attitude Toward Brand/Product Info on Social Media

According to Daily Social Media Users vs. TotalConsumers in Canada, March 2010

Online social networks are good places for brands/products toadvertise to consumers

54%

43%

I enjoy learning about brands/products via online socialnetworks

35%

25%

I am able to make more informed purchase decisions because of online social networks

24%

19%I have purchased a product because of something I saw on anonline social network

19%

13%

Visit social networks daily Total consumers

Note: n=1,011 ages 18+ Source: Vision Critical, "Online Social Networks: Trust Not Included," Sep15, 2010


Acrosstheboard,dailysocialnetworkusersweremore

receptivetobrandsonsocialnetworks.Thehighdegreeof

engagementpositivelyaffectscustomers’viewsofbrands

onthesites.Thiscanbeharnessedtoincreaseabrand’s

presenceonlineandultimatelyincreasesales.

Brandmarketingcampaignsthatengagetheircustomersand

encouragedailyusearegoingtobemoresuccessfulwith

theirsocialmediaefforts.Socialmediamarketingeffortsthat

increasethefrequencyofuserinteractionaredoublyeffective:

Usersbecomemorefamiliarwithsocialmediaandbrandsat

thesametime.

Spotlight: Facebook Best Practices

Facebook is the dominant social network in Canada.

Marketers have several options to engage their targets onthe social network through its many eatures.

The March 2010 ICOM report “The Infuencer: A ConsumerVoice with Legs” ound that 56% o internet users in Canadahad a Facebook account. However, just 12% o internetusers read about brands on Facebook and 6% addedcontent to a brand’s Facebook page.

Mashable recommends integrating “Like” buttons into abrand’s website and email campaigns. Brands can even goas ar as sponsorships or running contests or users that

“Like” a brand. The possibilities are essentially limitless aslong as the creative element is there to connect with theirtargets. Mashable also recommends taking advantage o new eatures on Facebook:

■ Groups, or building potential online reviews, eventsand live chats with customers.

■ Questions, or posing questions to users who have“Liked” a brand.

■ Places, specically or brands that can use Facebook in

physical locations.Many brands in Canada have already implementedcampaigns on Facebook with great success. Telus, oneo Canada’s largest mobile providers, successully tiedtogether cause marketing with social media. In September2010, Telus pledged to donate $200,000 to the “Go Pink”campaign to help local health organizations purchasedigital mammography equipment i they achieved 500,000Facebook “Likes.” By November 2010, Telus had more than502,000 “Likes” o its Facebook page.

Telus combined the power o a compelling cause andsocial networking to gain measurable value rom brandrecognition on Facebook.

Another example comes rom Molson Canadian, whichextended its “Made From Canada” promotion with the “Seizethe Summer” campaign in June 2010. Customers were drivento the brewery’s Facebook page through TV, online ads andpromotional product inserts. Conceived by agency CP+BCanada, the campaign implemented a Facebook applicationthat awarded users with badges or activities.

Facebook users could receive a “Super AwesomenessBadge” by completing specic tasks. In order to receivethe badges on their page, users had to veriy completiono tasks using a photo, riend conrmation or GPS tagging.Oten the badges included Canada-specic elements o humor or adventure that would appeal to the targeted

demographic o young beer drinkers. Two examples thatexempliy the creative were “Cooked meat over re” and“Saw a whale” badges.

“It’s really an opportunity to put our consumer at the centero our campaign.”—John Francis, brand manager at Molson Canadian, asquoted in Marketing Magazine, July 19, 2010

Completing a specic task entered users into weeklycontests or prizes like trips to Canadian Football Leaguegames and music estivals. At the beginning o thecampaign, Molson Canadian had nearly 370,000 Facebook“Likes.” According to Marketing Magazine, by July 2010,they reached 404,000 and by November were over 437,000.




Looking Ahead

Socialmediaadvertisingisheretostay.

Econsultancy,inits“SocialMediaandOnline

PRReport2010,”foundthat73%ofcompanies

surveyedworldwideincreasedbudgetallocation

forsocialmediain2010.Only3%decreasedthe

amount.Another83%ofcompaniesexpectedto

increasespendingin2011.

eMarketerestimateddisplayspendingatCAD698million($612

million)in2010,agurethatwillrisetooverCAD1billionby

2014.Accordingtothe“2009CanadaDigitalYearinReview”

reportfromcomScore,conversationalmediaaccountedfor

nearly25%ofalldisplaymediaimpressionsfortheentireyear.

Fortunatelyforthriftymarketers,socialmediaimpressions

remainrelativelycheapandtotalshareofimpressionswillnot

equaltheshareofspendinganytimeinthenearfuture.But

conversationalmedia’sshareofdisplayimpressionswillgrow

withtheincreaseinusersandtimespent.Associalnetwork

penetrationreachessaturation,inventorymaybecome

limited,causingpricestorise.

Fornow,guresforsocialnetworkusersfaroutpacethatof

spendingandpriceswillremaindepressed.Thetimetotest

newcreativeandsocialmediamarketinginCanadaisnow,

whilethecostisnotprohibitive.

However,keepinmindthatcreative,compellingcontent

remainsessential.MitchJoel,frequentbloggerandfounder

ofTwistImage,amediaandmarketingrmbasedinCanada,

highlightsthemostimportantassetofsocialmedia,theability

totellstoriesthatconnectwithyourcustomers.“Thebigidea

here,”saidJoel,“isthatifyourbrandiscompellingenough—

andiftheprizeisworthyenough—customersarenotonly

willingtocreatecompelling(andbranded)content,butthey’re

alsowillingtotellandsharetheirstorieswithanybodyand

everybodythey’reconnectedto.”

Conclusions

Social networks are where to nd the users.

Canadahassomeofthehighestinternetpenetrationand

saturationofsocialnetworkingusageintheworld.Acrossall

demographics,socialmediaactsasconsumers’onlinehome

andaplacewheretheygoforcommunication,entertainment

andinformation.Inaddition,alloftheusercontributeddata

canbetargetedthroughtoolsprovidedbysocialnetworks,

likeFacebookAd,creatinganindispensabletoolforany

marketer’smix.

Trust is essential for word-of-mouth.Gainingthetrust

ofsocialnetworkusersisabrand’sbiggestobstacle.Once

trustisgained,userscanspreadbrandcampaignsinstantlyto

theirentireonlinenetworks.Butbrandshavetobecarefulnot

tooverstepuser’strust;afull77%ofinternetuserssurveyed

byVisionCriticallistedprivacyasamajorconcern.

Daily users are more engaged with brands. Asusers

becomemoreaccustomedtovisitingsocialnetworksdaily,they

alsobecomemoreacceptingofbrandsthere.Savvymarketersshouldusesocialnetworkstointegratebrandsintothedaily

onlinelivesofcustomersandincreaseoverallexposureand

word-of-mouth,leadingtomoreinteractionandsales.

Abundant ad inventory is keeping prices low.Display

adsonsocialnetworksareinexpensive,butthereturnon

investmentfromcreatingcompellingcontent,engagingin

communicationwithcustomersandtellingrelevantstories

canleadtomeasureableresults.Whilepricesarelow,nowis

thetimeformarketerstoexperimentandndtherightmixof

display,sponsorshipsandcausemarketingtoimplementon

socialmedia.




Endnotes

Endnotenumberscorrespondtotheunique

six-digitidentierinthelowerleftcornerofeach

chart.Thechartsfromthereportarerepeated

beforetheirrespectiveendnotes.

121117

121117

billions of Canadian dollars and % changeOnline Ad Spending in Canada, 2008-2014

2008

1.60

2009

1.82

(13.7%)

2010

2.11

(16.0%)

2011

2.43

(14.8%)

2012

2.91

(19.8%)

2013

3.27

(12.5%)

2014

3.69

(12.9%)

Note: includes paid search, display, classified/directories, email and onlinevideo. 2009 figures include ads within video games; converted at average 2009 exchange rate (US$1=1.14 Canadian dollars) Source: eMarketer, Sep 2010


Extended Note:eMarketerbenchmarksitsCanadaonline

advertisingprojectionsagainstIABCanadadata,forwhichthe

lastfullyearmeasuredwas2009.

121241

121241

% of internet users

Comparative Estimates: Social Network Usersin Canada, 2010

eMarketer, Oct 2010

Ipsos Reid, June 2010

comScore Media Metrix*,Oct 2010

Trendstream & LightspeedResearch, June 2010

Vision Critical, Sep 2010

% of internetusers

59.0%

55.0%

52.4%

49.0%

45.0%

Age

All ages

18+

2+

16-64

18+

Usage

Use at leastonce per month

Have a profile

Daily visitors

Managed profile inthe past month

Daily users

Note: *eMarketer calculations Source: eMarketer, Oct 2010; various, as noted, 2010


Citation:comScoreMediaMetrix,providedtoeMarketer,Oct

27,2010;IpsosReid,“TheCanadianInter@ctiveReidReport:2010

FactGuide,”June29,2010;TrendstreamandLightspeedResearch,

“TheGlobalWebIndexWave2,”July6,2010;VisionCritical,

“OnlineSocialNetworks:TrustNotIncluded,”Sep15,2010




Related Information and Links

comScore

http://www.comscore.com

ICOM, a division o Epsilon Targeting

http://www.epsilon.com

Ipsos Reid

http://www.ipsos-na.com

Trendstream

http://www.trendstream.net

Vision Critical

http://www.visioncritical.com

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