Canadian businesses will spend billions more on advertising in the coming years, and a bigger share of it will be online, according to a report released this week by the Canadian Marketing Association (prepared by the Conference Board of Canada).

According to CMA, businesses will spend $17.3 billion on advertising alone in 2016, up from $14.4 billion in 2011. The Internet’s share of the overall ad spend is expected to climb to 26% by 2016, compared with 18% in 2011.

"This shift, notes the study, will generate substantial growth in e-commerce over the next five years, spurred by the rapid adoption of smartphones and tablets," reads a CMA statement.

The report, Marketing's Influence In Canada, also states that in 2011, businesses spent $29 billion on marketing-related activities in Canada (up from $21.3 billion in 2000).

“Marketing will play a critical role in business decision-making over the next five years as new digital tools and techniques come to market that will change the way we communicate with consumers and do business,” noted CMA president and chief executive officer John Gustavson. “The effective use of these techniques will be key to managing brands and winning customers in this evolving environment.”
 
A major Canadian publisher, TC Media, also weighed in with comments about the changing landscape.

“Beyond just shifting dollars from traditional to digital, marketers need to connect with their customers with the right content, at the right time,” noted Mathieu Peloquin, vice-president of marketing at TC Media. “It’s about taking advantage of the changing tools and new channels in the marketing mix, while mastering the art of having all relevant touch points working together to drive results.”

The full 138-page hardcover report can be ordered (for a cost) from this page.