Canadians may have avoided a recession, but for many, it certainly doesn’t feel that way.
High inflation and hikes in interest rates have taken a very real toll on household budgets, leaving Canadians with far less to spend than they did just a few years ago.
How are these factors affecting how Canadians shop, and how should brands respond in this sensitive climate?
As recession fears wane, worries about inflation remain
Our Video-on-Demand Evolution 2025 study found that while recession worries are starting to subside (49% were concerned in 2022 compared with 35% in 2024), concerns about inflation are climbing, if only slightly (from 54% in 2023 to 57% in 2024).
Almost all respondents to our survey – 96% in fact – said that they’ve had at least one worry over the past few years, or a concern for the years ahead. Unsurprisingly, inflation is the most often cited concern of all, with 3 in 5 Canadians reporting they’ve been worried about it in the past couple of years.
When it comes to the years ahead, the worry shared by the greatest proportion of streamers (58%) is the everyday cost of living and the ability to pay bills. On the whole, 86% of survey respondents said they had a concern related to the cost of living, which includes recession and inflation, as well as affordable housing, retirement, job or business security, the cost of raising kids, and funding education.
A third of Canadians say their income falls short of living costs
A third (33%) of Canadians we surveyed said that their income doesn’t cover their current living costs, a figure that is unchanged since last year. This is affecting how they spend – the Royal Bank of Canada (RBC) found that even spending on essentials, such as groceries and gas, had fallen toward the end of 2024.
Results from the Canadian Social Survey, conducted in spring 2024, found that households with children are experiencing greater financial difficulty, and that younger adults are more likely to report high financial stress.
This also shows in our survey. Younger streamers were more likely to say that their living costs exceed their income – while 24% of streamers aged 55+ agreed with the statement “my current living costs are higher than my income”, this rises to 35% of those aged 35 to 54, and, perhaps unsurprisingly, more than doubles to 55% for under-25s.
Consumers expect interest rates to remain high, RBC’s Canadian Survey of Consumer Expectations found in 2024, which is also having an impact on their spending decisions.
Simply put, many Canadians just don’t have as much to spend, so they’re being a lot more careful about where and how they shop.
Almost all Canadians are looking for discounts, and 2/3 are changing brands
When consumers feel the need to tighten their belts, they’re far more discerning about the brands they buy. Our study found that nearly two-thirds of Canadians (62%) are changing the brands they buy as a direct result of inflation and increasing prices. With consumers shopping around for better deals, brands must ensure they continue to advertise and remain front of mind.
Today’s more careful customer also wants to make sure they get the most bang for their buck. Quality and value for money are more important to them than ever, so brands should ensure this is clear in their messaging. Experts recommend that food and drink companies emphasize the nutritional benefits of their products, while other businesses should single out unique features to justify prices.
One of the most important things to keep in mind is the viewer’s emotional state – advertisers must communicate with sensitivity to show they understand the challenges their customers might be facing.
Nearly 9 in 10 Canadians (88%) look for price promotions and discounts when they shop, according to our study, a modest increase on last year (80%). Roku’s shoppable ad formats make it possible to serve the right ads – including product discounts – to the right streamers at the right time based on our understanding of the audience.
For example, the OK-to-Email ad serves a clickable overlay that lets advertisers send interested streamers a unique discount code via email along with the link to the brand website.
In these financially challenging times, it’s important to remember that brands can play a supportive role, serving content that’s genuinely helpful and that demonstrates an understanding of customers’ concerns. When the economy starts to recover and budgets relax again, it’ll be these brands consumers remember.
To find out more about the TV streaming landscape in Canada, and how Roku can help brands reach customers in creative ways, download Roku’s Video-on-Demand Evolution 2025 report.
