October 8, 2024
Unanimous Support, Mixed Results: Samantha Kelley Assesses the State of Local Media One Year After Bill C-18
  • Leadership and customer experience
C18

It's not new to hear about local media. The entire industry recognizes the essential role our local media play in the Canadian media ecosystem.

When advertisers and agencies are asked if they support Canadian media, the response is nearly unanimous: yes!

  • The A2C (the Association of Creative Communications Agencies of Quebec) launched the “Média d’ici” movement, a public directory of companies that openly state their support for local media. Today, 164 companies have signed on.

  • The Canadian Media Movement by the CMDC (Canadian Media Directors Council) includes more than 1,500 media and marketing professionals who have pledged to support Canadian media.

Moreover, the Canadian government adopted Bill C-18 to help Canadian news media negotiate fair commercial agreements with the largest online platforms.

September 28 marked World News Day. So, it's time to take stock: where do we stand?

  • According to SMI, digital investments in Canadian media dropped by 20% between 2017 and 2021.

  • Meta removed access to Canadian news from its social networks (as of August 1, 2023) instead of making commercial agreements with news media as required by Bill C-18.

  • Google created a $100 million annual fund to support Canadian media.

  • Several Canadian media outlets have reduced staff due to the lack of advertising revenue.

In summary, it's clear that the industry's efforts have largely been ineffective.

The real question is: why have we failed to match words with actions? In my opinion, it's because we're approaching the issue from the wrong angle. Most discussions focus on the importance of being a good corporate citizen, whether by investing in Canadian media to support jobs, sustain communities, or protect the journalism that upholds a healthy democracy. All of that is true. However, under the pressure of sales in an uncertain economy, most industry players prioritize the tangible performance of their advertising investments... and that's normal!

In my opinion, we need to change the nature of the conversation about local media. It must focus on the performance and value that Canadian media offer advertisers and agencies. Here are some facts to consider:

• The average Canadian consumer spends 33% of their time online consuming Canadian content. The role of any advertiser and agency is to reach their target where they consume their media, whether Canadian or not.

• Canadian media offer a level of attention up to 2.5 times higher than that of large online platforms. Not all advertising impressions are created equal. Ad recall rates have never been lower, and it's important to ask why.

• Several case studies show that increasing investments in Canadian media generates better business outcomes. A small warning: to reach this conclusion, advanced measurement solutions are needed that correlate advertising investment with business results (it's not just a simple media measurement).

Clearly, our work is far from over. In this equation, there are buyers (advertisers and agencies) and sellers (Canadian media). Each has a role to play:

What can advertisers and agencies do?

• Integrate attention data into the planning of advertising investments.

• Conduct analytical studies to better understand the short- and long-term impact of investments in Canadian media.

What can Canadian media do?

• In addition to maintaining the interest of Canadian consumers, they must develop ad inventory sought after by advertisers (notably video inventory).

• Unite their forces to make it easier to buy Canadian media. Advertisers and agencies don't always have the resources to deal with many partners. Why not create a Canadian media consortium? Better yet, why not share your first-party data to create qualified audiences that could compete with the alternatives offered by the large online platforms? Adapt quickly.

In conclusion, this challenge is a question of balance. There's a place for Canadian media in our advertising investments, just as there is one for online platforms. The big question is: where does that balance lie for you?

Redefining

creativity

We are steadfast in our belief that marketing and media creativity needs to be constantly redefined. Because we are emboldened by the ever-more meaningful, memorable and impactful connections this creates between a brand and its audiences. And most importantly, because it drives business success.