Total advertising expenditure

Total advertising spending in Canada is projected to grow 1.1% in 2026, supported by a mix of major events and expanding media inventory. The men's World Cup, hosted partly in Canada, will draw more tourists and brand activity, boosting demand for campaigns tied to travel, hospitality, retail, and fan engagement, while organizations like Canada Soccer are poised to secure substantial sponsorship revenue, further amplifying advertising around the tournament. At the same time, new out-of-home capacity—such as TTC stations where PATTISON Outdoor is rolling out ad support—will broaden opportunities for transit and place-based advertising as new locations come online. These structural additions to the media landscape are complemented by continued growth in ad-supported and tiered streaming services, as more Canadians watch content on platforms that rely on commercial breaks and sponsored placements. Together, these drivers sustain modest but positive growth, pushing total advertising expenditures up by about 1.1% in 2026.

Advertising expenditure closely mirrors fluctuations in economic activity and business confidence. The COVID-19 pandemic significantly impacted these aspects in 2020, causing a 6.0% decline in advertising expenditure due to reduced corporate profits and a downturn in consumer spending. Government-imposed social distancing measures and lockdowns further exacerbated these effects, constraining business activity. Although the economy swiftly recovered, the subsequent rise in inflation rates led to increased interest rates, suppressing consumer demand. Consequently, the subsequent years saw growing advertising expenditure, with increases of 0.4% and 1.1% in 2023 and 2024, respectively.

During the 2021-2025 period, digital media played a critical role in shaping advertising strategies. By 2024, it accounted for approximately 64.0% of total advertising expenditure, underscoring its dominance over traditional platforms such as television and newspapers. Despite these changes, consumer trust in traditional media formats persisted, influencing advertisers to cater to older demographics through these channels. This demonstrated the enduring impact of consumer preferences on advertising allocation decisions. Advertising expenditure grew at CAGR 3.2% over the five years to 2026.