IAB Canada Applauds ACTRA, ACA and ICA For Negotiating Breakthrough, Made-In-Canada Agreement For Video Online

Toronto, ON. November 27, 2008 - Online Audio and Video advertising in Canada can finally begin to flow, as a result of a new breakthrough agreement negotiated between the Alliance of Canadian Cinema, Television and Radio Artists (ACTRA), the Association of Canadian Advertisers (ACA) and the Institute of Communications Agencies (ICA). The new agreement allows Advertisers to take full advantage of using professional, talented, Canadian performers for their Online marketing efforts.

The pilot project (which will run for the next two and a half years), is designed to stimulate growth and employment opportunities within the Canadian market, and includes significantly-reduced talent rates for Video commercials made for TV and radio, that are later ported into the New Media environment (Online, within podcasts or across Mobile platforms). The agreement also contains similarly-reduced usage rates for Video commercials produced specifically for New Media.

“ACTRA, the ACA and the ICA should be applauded for the leadership position they have taken on this issue,” says Paula Gignac, President of The Interactive Advertising Bureau of Canada. ”This “Made-In-Canada” example of compromise is also one that should help point the way for other countries around the world who have been struggling to find their own middle ground with respect to talent remunerations for digital Video.”

Canadian consumers are world leaders in Online Video viewership. In fact, of the five countries currently measured by comScore Video Metrix, Online Video had the highest reach in Canada, where almost 21 million viewers (or a full 87 percent of the total Online population age 15+), viewed a Video Online in August 2008. In contrast, only 78 percent of the U.S. Online population viewed a Video Online in this same month.

Canada’s Online Video audience also viewed more Videos than any of the other reported countries -- averaging 145 Videos per viewer for the month of August, followed by the U.K. with 135 videos per viewer, Germany with 118 videos per viewer, and France with 81 videos per viewer. Again, U.S. activity was slightly lower, averaging 88 videos per viewer in August 2008.

But while Online Video viewership in Canada has been soaring, Video advertising has been stymied until now, by prohibitive talent costs associated with running Audio and Video commercials Online. In fact, according to IAB Canada’s annual Online advertising survey, Video advertising made up just 1% of the total 2007 Online advertising revenue in Canada. “Without a doubt, we would expect this new agreement to help Advertisers who have been waiting in the wings, push forward with increased Video ad spend in 2009,” says Gignac. “Video has proven to be an incredibly hard-working Online ad format for Advertisers. In fact, recent research compiled from the almost 200 Video campaigns already in Dynamic Logic’s Market Norms database, indicates that Video ads are twice as powerful as all other Online ad formats in drawing consumers attention to the ads themselves; and almost 40 percent more effective in driving brand message association.

IAB Canada encourages Advertisers of all types who have been considering getting into either in-stream, rich media or over-the-page Audio and Video advertising, to take immediate action on these new pilot project rates, in order to benefit from Video ad effectiveness in 2009 and beyond.”

Creative specifications, technical standards and due dates for all forms of Audio and Video ads in Canada can be found at: http://www.iabcanada.com/standards/onlinead_standards.shtml .

A complete breakdown of the new talent remuneration rates for various Audio and Video commercial scenarios can be found within the New Media section of the NCA Memorandum of Settlement at: http://www.actra.ca/actra/images/08Oct/MOS_Scan_of_website_version.pdf.

For more information contact:
Paula Gignac
President, IAB Canada
iabcanada.com
416-598-3400 (ext. 26)

The Interactive Advertising Bureau of Canada (www.iabcanada.com), is the national voice and de facto thought leader of the Canadian Interactive marketing and advertising industry, and is a not-for-profit association representing Canada’s most well-known and respected Advertisers, Agencies, Media Companies, Service Associates, Educational Institutions and Government Associations.

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