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Amid C-18 row, media group urges advertisers to pledge 25% of budgets to local news – National

Canada’s local news providers will see revenue hit in the aftermath of Ottawa’s bill C-18, national media group head warns in letter to advertisers, supporting small businesses warned that it would encourage spending dedicated to

Passage of bill C-18, dubbed the Online News Act, was met with quick retaliation in June from tech giants Meta and Alphabet.

The bill aims to force major Internet streaming platforms such as Meta-owned Facebook and Alphabet-owned Google to compensate Canadian news outlets for content posted on their platforms. But both tech giants said they would block access to Canadian news content on their platforms in protest of the bill.

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Bill C-18: Canada won’t be ‘blackmailed’ by Google and Meta, Rodriguez says

The move would not only result in the potential revenue loss that Bill C-18 seeks to force platforms to pay to news outlets, but it would also cut traffic to news outlet content.

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but, Open letter to advertisers Shannon Lewis, president of the Canadian Media Directors Council (CMDC), said, along with other stakeholders in the Canadian media industry, that leaders in the field should be “independent” of both Ottawa’s laws and the ambitions of big tech companies. claim to be influential.

The letter, published Tuesday, calls on media and advertising companies to commit to spending 25% of their online digital marketing budgets through local media. Spending a quarter of advertising dollars on local media would bring Canada’s support to local journalism to $380 million, Lewis said, exceeding revenue projections associated with Bill C-18. Deaf, she said.

The call comes at a time when advertising dollars have flowed to tech giants and advertising in Canadian news has been declining for years, Lewis wrote. In 2014, approximately 23.1 percent of domestic advertising dollars went to Canadian and local media. Five years later, that figure had fallen to 5.7 percent, she wrote.

Over the past 15 years, 473 local news outlets have closed, affecting more than 300 communities across Canada, she added.

Global News’ parent company, Corus Entertainment, also owns local newsrooms and radio stations in communities across the country.

Lewis argued that Canada’s “robust and sustainable” media environment is also great for advertisers, who can reach audiences through “trusted sources in a brand-safe environment.”

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“Today I am reaching out to all of you to urge you to support our common cause of protecting and enhancing local news in Canada,” she wrote.

“Your leadership and actions are very important and together we can make a big impact.”

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Bill C-18: Canada Announces Suspension of Government Advertising on Facebook, Instagram

It remains unclear what the permanent consequences of Google and Meta’s blockade of Canadian newslinks will be.

Cultural Heritage Minister Pablo Rodriguez said earlier this week that he was “extremely disappointed” in Mr Mehta’s stance, calling it “irresponsible”.

He said he was more comfortable with Google, which also announced it would block news from Canadian publishers, but continued talks with the government about what big tech regulation would look like. said.

— with files from the Canadian news agency

© 2023 Global News, a division of Corus Entertainment Inc.

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