Canadian SMB Digital Marketing Statistics 2026

Key takeaways

• Canadian digital advertising revenue is forecast to surpass $21.2 billion in 2025, up 16.6% from $18.2 billion in 2024 (IAB Canada, 2025).
• Digital is projected to make up about 80.1% of all Canadian media ad spending in 2026 (eMarketer, 2026).
• 78% of Canadian small businesses have a website — but only 33% of those use it to sell directly (CFIB, Sept 2025).
• 56% of Canadian consumers already use generative AI tools for shopping, and 26% say ChatGPT beats Google for product research (Omnisend, 2025).
• 97% of consumers read online reviews for local businesses, and 54% visit a business’s website after reading positive reviews (BrightLocal Local Consumer Review Survey).
• Email marketing returns an average of $36 for every $1 spent — still the highest ROI of any digital channel (HubSpot, 2025).
• 31.7 million Canadians — 79.4% of the population — were active social media users in early 2025 (DataReportal, 2025).

1. Market size & digital ad spend in Canada

Canada’s advertising market has tipped decisively toward digital. The headline figures show both the scale of the opportunity and how quickly budgets are migrating online.

• Canadian digital advertising revenue is forecast to reach $21.2 billion in 2025, up from $18.2 billion in 2024 — a 16.6% year-over-year increase (IAB Canada, 2025).
• Social advertising is the fastest-growing format in Canada, up 26.9% year over year, followed by retail media (+20.4%) and video (+18.4%) (IAB Canada, 2025).
• Digital made up 76.7% of total Canadian ad spending in 2025 and is projected to reach 80.1% in 2026 (eMarketer, 2026).

With four in five ad dollars now flowing to digital, paid search is where most Canadian SMBs capture high-intent demand — our Google Ads management helps small businesses compete without overspending.

2. Online presence & channel adoption among Canadian SMBs

The single most authoritative read on Canadian small business behaviour is the CFIB’s September 2025 survey of 2,478 independent business owners. It shows near-universal social presence but a persistent website and e-commerce gap.

• 90% of Canadian small businesses use at least one digital channel (CFIB, Sept 2025).
• 78% maintain a company website, 59% actively use Facebook, 52% use Google Business Profile/Maps, and 41% use Instagram (CFIB, Sept 2025).
• Of the 78% with a website, only 33% use it for direct sales — most sites are still brochures rather than storefronts (CFIB, Sept 2025).
• 84% of Canadian SMBs use digital channels for business promotion and 59% for customer communication, the two leading use cases (CFIB, Sept 2025).
• Among small businesses facing digital challenges, 66% cite lack of time as the top barrier, ahead of cost, technical skills, and cybersecurity concerns (CFIB, Sept 2025).

For most Canadian SMBs, the highest-leverage fix is making the website itself work harder — see our SEO services for how organic search turns a brochure site into a lead engine.

3. Social media & audience reach

Canada is one of the most connected markets in the world, which is why social advertising is growing so fast.

• There were 31.7 million active social media user identities in Canada in January 2025 — equal to 79.4% of the total population (DataReportal, 2025).
• 86.7% of Canadians aged 18 and over use social media, with the adult user base at 28.3 million in early 2025 (DataReportal, 2025).
• Facebook (59%) and Instagram (41%) are the social platforms Canadian small businesses use most, while newer platforms like TikTok and X sit under 10% SMB adoption (CFIB, Sept 2025).

4. Local search & review behaviour

For service-area and storefront businesses, local search and reviews are where the buying decision is made.

• 80% of consumers search online for local businesses weekly, and 32% search daily (SOCi Consumer Behavior Index, 2024, via BrightLocal).
• A complete Google Business Profile makes customers 70% more likely to visit and 50% more likely to consider buying (Google, via BrightLocal).
• 42% of searchers click on a Google Map Pack result for local queries (Backlinko, 2024, via BrightLocal).
• 97% of consumers read online reviews for local businesses (BrightLocal Local Consumer Review Survey).
• 54% of consumers visit a business’s website after reading positive reviews (BrightLocal Local Consumer Review Survey).

Winning the Map Pack and review signals is exactly what our local SEO services are built to do for Ontario service businesses.

5. E-commerce & online sales in Canada

Canadian e-commerce keeps climbing as a share of retail, even as the website-to-storefront gap among SMBs persists.

• Retail e-commerce is projected to reach about 13.0% of total Canadian retail sales in 2025, up from 11.9% in 2024 (eMarketer, 2025).
• Statistics Canada tracks monthly retail e-commerce sales in its official data table, the authoritative public record of Canadian online retail volume (Statistics Canada, Table 20-10-0056-01).
• Only one in three Canadian small businesses with a website (33%) actually sells through it — the clearest signal of untapped e-commerce upside (CFIB, Sept 2025).

6. Email ROI & the shift to AI search

Two channels frame the present and future of SMB marketing: email, the most cost-efficient channel that exists, and AI search, the fastest-changing way Canadians find businesses.

• Email marketing returns an average of $36 for every $1 spent — a 3,600% ROI (HubSpot, 2025).
• Advanced AI adopters are 75% more likely to achieve email ROIs above 45:1 (Litmus State of Email, 2025).
• 56% of Canadian consumers now use generative AI tools for shopping tasks — most often for product research (33%), recommendations (26%), and finding deals (20%) (Omnisend, 2025).
• 26% of Canadians say ChatGPT beats Google for product research (Omnisend, 2025).
• 51% of Canadian consumers are now likely to use generative AI to research a purchase — a 10-point jump in one year (Attest, 2025).

As Canadians shift research to AI assistants, getting cited by ChatGPT, Perplexity, and Google AI Overviews matters as much as ranking in classic search. That is the core of AI SEO — and you can go deeper in our AEO & GEO guide.

Frequently asked questions

How much do Canadian businesses spend on digital advertising?

IAB Canada forecasts Canadian digital advertising revenue will surpass $21.2 billion in 2025, up from $18.2 billion in 2024 — a 16.6% year-over-year increase. eMarketer projects digital will account for about 80.1% of all Canadian media ad spending in 2026.

What percentage of Canadian small businesses have a website?

According to a September 2025 CFIB survey of 2,478 independent business owners, 78% of Canadian small businesses maintain a company website. That means roughly one in five (22%) still have no website at all, and of those that do, only 33% use the site to sell directly.

Do Canadians use AI tools to find and research businesses?

Yes, and adoption is accelerating. 56% of Canadian consumers already use generative AI tools for shopping tasks, and 26% say ChatGPT beats Google for product research (Omnisend, 2025). Attest found 51% of Canadians are now likely to use generative AI to research a purchase — a 10-point jump in one year.

How important are online reviews for Canadian local businesses?

Reviews are now decisive. BrightLocal’s Local Consumer Review Survey found 97% of consumers read reviews for local businesses, and 54% visit a business’s website after reading positive reviews. A complete Google Business Profile makes customers 70% more likely to visit (Google).

Sources

Every statistic above is drawn from the publications below. All source URLs were verified live before publication. Where a figure is reproduced from a named primary source via an aggregator, both the original source and year are noted inline.

1. IAB Canada — Digital Advertising Poised to Surpass $21 Billion in 2025 (2025).
2. eMarketer — Canada Digital Ad Spend 2026 (2026).
3. eMarketer — Canada Ecommerce Forecast 2025 (2025).
4. CFIB (Canadian Federation of Independent Business) — Small Business Digital Presence (Your Voice survey, September 2025, n=2,478).
5. Statistics Canada — Monthly retail trade e-commerce sales, Table 20-10-0056-01.
6. DataReportal — Digital 2025: Canada (January 2025).
7. BrightLocal — Local Consumer Review Survey.
8. BrightLocal — Local SEO Statistics (compiling Google, SOCi Consumer Behavior Index 2024, and Backlinko 2024).
9. Omnisend — Over Half of Canadians Now Use Gen AI Tools for Online Shopping (2025).
10. Attest — 2025 Consumer Adoption of AI Report (2025).
11. HubSpot — Email Marketing ROI: Key Stats & Proven Effectiveness (2025).
12. Litmus — State of Email Reports (2025).

Compiled by Digital Estate Media, an AI-powered digital marketing agency serving Mississauga, the Greater Toronto Area, Ontario, and Canada. Spotted a figure that needs updating? Let us know.