The United States' dollar has typically been valued more than Canadian currency. With the low Canadian dollar of 2020 continuing into the new year, a single Canadian dollar is currently valued below the U.S. dollar by about 20 cents as of February 2021. This difference has offered a bargain for those shopping in Canada with U.S. currency, with many American companies taking notice. Differences between USD and a low CAD offers many opportunities tied to marketing strategies for American businesses, allowing U.S. companies to adjust their marketing budgets and allocate for some discounted yet effective advertising in Canada's media landscape. With America's current dollar value advantage, U.S. companies purchasing TV advertisements from Canada have already begun seeing a difference in visibility and ROI for the new year at a much cheaper price.
A primary focus for Americans looking to advertise in Canada has surprisingly been with traditional forms of media. Specifically, with television ads, American businesses have been able to secure far more advertising airtime at a competitive fraction of the cost when compared to American TV networks. Though TV advertising pricing and spending for Canada has only been increasing within the past couple of years, the higher value of USD has allowed for bargain deals since 2014, following a span of five years of even value between currencies. But even with better pricing, Canadian TV viewership has also seen a rise within the past year, showing from 20-30% across all channels and cable news. Proving to be an effective strategy for increasing brand reach at a competitive cost, advertising on Canadian TV in 2021 gives increased mass reach, competitive rates, and better engagement than crowded U.S. networks.
Canadian advertising has also seen a major upswing in eCommerce, particularly in the field of direct-to-consumer ads. With many businesses being affected worldwide from COVID-19, eCommerce and DTC advertising have seen a period of growth and expansion due to the amount of traffic looking online for means of shopping, entertainment, work, and other means. Notably, with many brick and mortar businesses moving to an online space for the first time, American businesses have found new digital avenues to achieve sales across North America, many of which choosing to advertise in Canada to reach a mass audience at competitive rates. DTC and eCommerce have given small and large businesses alike the opportunity to communicate directly with consumers in a time of difficulty through advertisements and optimal media buying. By choosing to advertise with DTC and eCommerce campaigns in Canada, brands can aid their losses in creating stronger nationwide consumer relationships, gain a better understanding of a company's audience, acquire new customers and more, overall achieving more for less.
Thanks to the higher value of USD compared to CAD, American companies have the potential to market their brand on a large scale for less by purchasing television ads and pursuing methods of DTC from Canadian media businesses. Kingstar Media, Canada's #1 media buying company, offers a deep understanding of media currency and airtimes, supplying our clients unrivalled expertise when pursuing Canadian advertising and media buying. Contact Kingstar Media and learn about all the benefits today!