Canadian Display Traffic: Valueless in 2016
(Sell-Side – Publisher talk!)
Canadian web traffic seems to be devalued on the world market, ranking close to Australian. Especially the market value on the global programmatic marketplace. Canadian “eyeballs” aren’t just that valuable to the demand side. Really we’re quite similar (Aussies & Canadians), but that’s another story.
Canadian traffic is at the top of many of the global network and Tier 1 publishers.. In the top 4 traffic sources by Geo. Yet, demand for Canadian traffic isn’t constant outside of Canada, and the traffic goes largely unmonetized. Demand for Canadian display traffic originates from within Canada. Yet demand for example for US, UK, DE traffic originates outside of those countries too. Demand for these Geo’s is constant and auto generating. Why?
Fewer Canadian Consumers
The Canadian consumer is a valuable and intentful traffic source. There’s just not enough of them localised in one particular DMA. Besides the Toronto corridor or maybe Montreal, crossborder publishers’ targeting capabilities are too limited to make a measurable impact on ad revenue – even when there is CA demand. And the purely top Tier 1 “.ca” publishers’ inventory is already wrapped up an commoditized by the larger Canadian networks.
The geography, disparity and proximity to the US market may be one factor. The US market is the strongest and most valuable traffic in the world, with the highest CPM’s in North America that’s for sure. According to the Financial Post article dated in 2013, “Online retail sales to hit $34-billion in Canada by 2018” , Canadians are expected to increase their purchases online from retailers like Amazon, and Best Buy. For more information on how the demand side capitalizes on your web visits and your web browsing tracking and history.. See my previous video blog post “Advertising: Why You Need It: 2016” about the nature of digital tracking and consumerism in North America.
Canadian “eyeballs” going unmonetized
Canadian (CA) traffic is going largely unmonetized on cross border publishers. CA traffic is not being valued. So how does this happe?. Let’s says a publisher has a majority of US, UK, DE and then CA traffic. The first 3 Geo’s get monetized and the CA goes to a remnant partner .. so the lowest in the ad dollar chain.
That same CA traffic on a Canadian site is valued twice as much from demand/buyers within Canada. It makes more sense to advertise to Canadians from outside Canada, as it’s more cost effective for the demand side.
Programmatic Advertising in Canada
To confound the situation, programmatic is not understood by most Canadian mid tier Publishers, as they expect the direct or guaranteed buys to continue. To them, programmatic it as just another remnant deal, rather than incremental revenue or alternative revenue source.. rich media programmatic confounds them entirely.
Yet, the top tiers’ get demand dollars beating down the door all day so they just can sit back and get the direct buys and normal ad stack partners… but programmatic and scale buying of standard IAB and now rich media will continue to erode their high CPM’s. Listen and watch the market!
… video blog of this post coming soon!
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Need the advantage of an advertising consultant and business development manager, with a speciality in Display or Mobile Advertising? My name is Marc Joffe and I can help manage your display inventory or create new demand for your advertising space. As a Publisher Advocate that’s what I love to do. I work from Vancouver, Canada and still make a great Dutch “toastie.” @adopsonline. I vlog about display, seo and marketing. Subscribe to my new ad supported youTube channel