Local news outlets are calling on the federal government and large corporations to dedicate a portion of their advertising budgets to support independent Canadian media.
What happened: The idea expands on a directive put in place by the Ontario government over the summer, which requires the province’s four largest government agencies to direct at least 25% of their advertising spend — an estimated $25 million annually — to local outlets.
- The new rule impacts the Liquor Control Board of Ontario (LCBO), the Ontario Cannabis Store, Metrolinx, and the Ontario Lottery and Gaming Corporation (OLG).
- With the injection of ad money, Jeff Elgie, the CEO of Village Media, says he’s been able to hire more journalists, accelerate new launches, and improve ad technology.
Why it matters: Last year, at least 36 local news outlets shuttered across Canada, leaving dozens of communities scrambling to keep up with the developments that don’t get picked up by national news, including updates on local government, schools, and businesses.
- A recent study by Dentsu and Teads found that ads on local news platforms outperform other media outlets, in terms of viewability and overall attention.
What they’re saying: “The Ontario government stepped up to the plate,” said Moses Znaimer, founder and CEO of The Peak’s parent company, ZoomerMedia. “We call on all levels of Government and all major Canadian corporations to rebalance. We’re not asking you to suddenly drop all the dominant global socials, but we are suggesting that you can effectively spend half your budgets with Canadian media and still achieve your goals.”