Since the beginning of October 2024, a new 2.5% tax has been imposed on all advertising expenses made through Google Ads in Canada and DV360. This measure affects all advertisers, whether they are based in Canada or abroad, and represents a significant change for those who use Google for their digital marketing strategies.
This "tax" is part of the new Canadian legislation on the taxation of digital services. Adopted in July 2024, it aims to ensure that major tech companies, which generate significant revenues in Canada, contribute fairly to the local economy. The taxation, initially planned at 3% on the revenues from Canadian users, affects several tech giants like Google, Facebook, Amazon, and Apple.
For advertisers, this means that advertising expenses increase directly, as Google passes on this new tax burden to its clients by applying a 2.5% tax on all ads shown in Canada.
This cost increase will primarily affect the advertising budgets of companies using Google Ads. If you are an advertiser, you have probably already noticed a slight increase in your invoices since the beginning of October. This tax requires companies to review their strategies to optimize their advertising costs and offset the increase. Moreover, the introduction of digital services taxes in Canada also impacts other tech companies in the coming months.
With the cost increase due to this tax, it is important to take steps to keep your ad campaigns effective without exceeding your budgets. Here are some strategies you can adopt:
If you have questions about the impact of this new tax on your ad campaigns or if you want advice on how to optimize your budgets, we encourage you to discuss it with your campaign manager. Whether you already work with Rablab or another partner, it is essential to understand the implications of this tax and make the right decisions to maintain the effectiveness of your ads.
Do not hesitate to contact your campaign manager for personalized support and to adapt your advertising strategy to this new reality.
