IAB Canada’s latest Internet Advertising Revenue Survey and Forecast projects another year of solid growth for the Canadian digital advertising market — with revenues expected to reach $21.2 billion in 2025, up from $18.2 billion in 2024. The projection represents a 16.6% year-over-year increase, underscoring advertisers’ continued confidence in digital media even as the broader economy faces inflationary pressures, evolving regulation, and transformative advances in AI. 

A Market Built on Resilience and Performance 

While 2024 presented a challenging backdrop — from the introduction of Canada’s Digital Services Tax to a tightening economy — digital channels once again demonstrated their unmatched efficiency and adaptability. The previous year’s 14% gain sets a strong foundation for continued expansion, particularly across video (+18.4%), social (+26.9%), and the fast-emerging retail media (+20.4%) category 

Where Growth Will Come From 

The 2025 outlook highlights several drivers of momentum: 

• AI-powered efficiency — From creative optimization to predictive audience modelling, AI is reshaping media operations and driving measurable results. 

• Connected TV and Advanced Video — Nearly 40% of video investment now flows into Connected TV environments, where advertisers are blending storytelling with precision targeting. 

• Retail Media Expansion — Now exceeding $1.4B, retail media is evolving from a performance niche into a full-funnel opportunity that connects commerce and content. 

• Domestic Strength — Canadian publishers continue to hold a meaningful share of market value as the ecosystem matures and innovation deepens at home. 

A Sector on the Cusp of Reinvention 

As policy frameworks evolve and AI adoption accelerates, 2025 will mark a defining year for how Canada balances innovation, privacy, and competitiveness. IAB Canada’s ongoing work with government and industry partners aims to ensure that regulation enhances — rather than hinders — digital growth. 

“The story here is momentum,” says Sonia Carreno, President, IAB Canada. “Even as the landscape shifts, digital remains the most dynamic and trusted engine of growth. The next chapter will be defined by smarter automation, deeper measurement, and renewed confidence in Canadian innovation.” 

The 2024 IAB Canada Internet Advertising Revenue Survey and 2025 Forecast provides detailed insights by format, buying method, and language, plus international benchmarks and a first look at Canada’s retail media trajectory.