TORONTO, February 24, 2009 - The Interactive Advertising Bureau of Canada today announced that Mobile Advertising Revenue in Canada grew from $1.1 million in 2006 to $2.7 million in 2007, and is expected to almost double again in 2008 to $5.2 million.

Standard SMS advertising programs currently generate 75% of the total Canadian Mobile advertising revenue, with the remainder divided across Premium SMS, Mobile Content, Mobile (Display) Advertising, Mobile Search and Mobile Applications. All forms of Mobile advertising are growing rapidly year-over-year, with the exception of Mobile Search, which is virtually non-existent at this time.

In thousands of dollars, 2007 vs. 2006 Canadian Mobile Revenue by Advertising Vehicle, breaks down as follows:

2007 Canadian Mobile Advertising Revenue by Major Product/Service Category was also tabulated, and was as follows:

“This is an important day for the Mobile marketing industry in Canada,” says Peter Vaz, VP Director, Digital Communications, M2 Universal Digital, and VP of IAB Canada’s Emerging Platforms Council. “The results show not only the rapid growth of the market to date, but beyond that, the fact that Mobile marketing is poised to move from one-off experimental campaigns to becoming an important part of the overall Interactive marketing mix. Moreover, as multimedia and network capabilities evolve within the channel, the nature of the advertising offer will evolve as well, moving well beyond current SMS programs, into more sophisticated and personal Mobile Content, Video and Application campaigns across an even wider range of Advertiser categories.”

While Mobile Advertising revenue is growing exponentially compared to other major media — 143% between 2006 and 2007, compared to the 5% growth rate of all major media and Online’s 38% growth over the same time period — this is to be expected, given Mobile’s relatively small and nascent advertising revenue base.

Yet even with this rapid growth, Mobile is still not without its challenges. When asked to identify possible business constraints going forward in the immediate term, Mobile Survey respondents cited the small size of the Mobile Internet-enabled audience and the revenue-building restrictions imposed by the current Carrier/Provider business model as the main obstacles to overcome in the short-term. Understandably, there is also some concern about the current economic downturn and the impact it could have on Mobile advertising growth in 2009.

“Fortunately, like all other Interactive media, one of the key strengths of the Mobile channel is its inherent measurability,” says Adrian Schauer, Managing Partner, Vortex Mobile and Chair of IAB Canada’s Mobile Comte. “Add to that the very immediate, targeted and opt-in nature of the advertising, and you have a golden triangle of opportunity for accountability and future growth that is of paramount importance to all clients, regardless of economic climate.”