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Advertising and related services, 2016

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Released: 2018-02-09

The advertising and related services industry generated $9.4 billion in operating revenue in 2016, up 1.4% from 2015. Operating expenses rose 1.7% to $8.1 billion, resulting in an operating profit margin of 13.4%, down slightly from 13.6% in 2015.

Salaries, wages, commissions and benefits increased 1.5% to $3.5 billion in 2016 and accounted for the largest proportion of total operating expenses for firms in this industry at 42.9%. Cost of goods was the second largest expense at 16.4%.

In dollar terms, firms located in Quebec generated the largest gain in operating revenues, up 6.5% from 2015. Firms located in British Columbia (+11.7%) and Manitoba (+13.9%) also posted gains that were above the national average. In contrast, Ontario (-1.7%) and Alberta (-5.2%) were the only two provinces to post declines in 2016.

Firms in Ontario accounted for 57.1% of total operating revenues, followed by Quebec (21.6%), British Columbia (10.3%) and Alberta (6.6%). Provincial and territorial shares of industry revenue were relatively stable compared with previous years.

Sales of advertising and related services to Canadian businesses accounted for the largest share of the client base for this industry group, followed by sales to clients outside of Canada and sales to governments, not-for-profit organizations and public institutions.

Over the previous few years, the share of sales to businesses has been declining. In 2016, sales to Canadian businesses accounted for 79.7% of total sales to clients, down from 83.4% in 2013, a drop of 3.7 percentage points. Meanwhile, the share of sales to clients outside Canada rose 2.5 percentage points to account for 11.0% of total sales to clients.

  Note to readers

Data for 2014 and 2015 have been revised.

The CANSIM data series at the six-digit level of the North American Industrial Classification System have been terminated pending further evaluation of the quality of the estimates at that level.

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