The Interactive Advertising Bureau of Canada is projecting that online advertising revenues in Canada will hit an estimated $1.5 billion this year, up a full 25% increase over 2007.

According to a new report from the IAB, which surveyed companies with anticipated revenues of over $5 million, publisher revenues from online have quadrupled over the past five years, growing from $237 million in 2003.

In advertising vehicles, search led the way with $478 million, followed by display at $432 million, classifieds/directories at $305 million, email at $17 million and video at $9 million. By category, auto advertisers led the way at 16%, followed by financial at 11%, technology at 10%, retail at 9%, media/entertainment at 8%, telecommunications at 7%, leisure (travel, hospitality) at 7%, packaged goods at 6% and "other" at 26%.

IAB Canada president Paula Gignac says the growth in online advertising speaks to "how important the medium has become to marketers in terms of its ability to reach, target, engage and dialogue with consumers."

"The sky's really the limit for online, as new developments in targeting technology, creative -- it's great to have our first video advertising revenue number -- and integrated strategies are happening on an almost daily basis. Online advertising is no longer below the line in any way," he adds.

From Media in Canada