A simple strategy for investing in Canadian media

Opinion

Manitoba’s November 2024 speech from the throne noted, “One of our society’s most important freedoms is freedom of the press. It holds the powerful to account, including government. In an age of so much misinformation and polarization, we can’t afford to let journalism disappear. At the same time, we can’t allow this issue to become politicized. So, we are establishing an all-party committee to explore the future of local journalism including rural and cultural media such as Filipino, Punjabi and Chinese-language publications.”

Those were very welcome words to news publishers from across Canada, especially in light of U.S. President Donald Trump’s repeated attacks on Canada’s economy and sovereignty, which have changed the nature of our bilateral relationship.

For generations — all the way back to the founding of the Halifax Gazette in 1752 — government advertising had been an important source of revenue for news businesses. In recent years, this has waned considerably. For example, the federal government reports that during fiscal year 2022 to 2023, it spent more than $86 million on advertising. Of that, less than $1 million went to all the print publications in the country combined.

Where did the money go? Largely to American tech giants like Google, Facebook/Instagram, Snapchat, Apple and X.

One of the most effective ways to sustain independent Canadian journalism would be for governments — federal, provincial, and municipal to set aside a minimum of 25 per cent of their advertising spend for trusted Canadian news brands.

This is working in other jurisdictions and across the political spectrum.

A year ago, Ontario’s Progressive Conservative premier, Doug Ford, directed that 25 per cent of his government’s advertising spending would be set aside for news publications. This made an immediate and meaningful difference to many news titles.

Five years ago, former New York City mayor Bill de Blasio, a Democrat, mandated that city agencies allocate at least 50 per cent of their print and digital advertising to community and ethnic media. According to the Center for Community Media at the City University of New York, “The impact of this policy cannot be overstated: In its first five years, it injected more than (US)$72 million into the local community media sector. This helped critical information reach New Yorkers who rely on community media as their primary source of news, and added an important source of revenue for these outlets.”

The not-for-profit Rebuild Local News found that advertising set-asides, done right, have the following benefits:

● They can provide substantial revenue to local news organizations and help community journalism thrive;

● It is money the government is already spending — not new money — so it does not require enlarging state or local budgets or raising taxes;

● Government messages can reach a full range of residents, including those who may not be using larger media;

● As advertising, it is payment for a service rendered, not a subsidy per se;

● And, advertising in community news helps government be more effective by reaching audiences through community and ethnic publications that are more trusted in their communities.

According to a recent study conducted by Cossette Media, Vox Pop Labs and the Google News Initiative, advertising in trustworthy environments led to a 25 per cent lift in brand rating. News publishers in aggregate are seen as 35 per cent above the baseline level of trust across information environments. Local news publishers see an additional 16 per cent gain in perceived trustworthiness among local audiences, so newspapers are a highly effective way for the government to reach Manitobans, especially the 43 per cent of Manitobans who live in rural communities.

Moreover, a provincial set-aside would help preserve local journalism jobs and keep local and community newspapers open. The fact-based, fact-checked journalism produced in Manitoba keeps communities connected and residents informed, so they can effectively participate in democratic processes.

It would also send an important signal to private sector advertisers about keeping ad dollars in Manitoba, rather than sending them to Big Tech behemoths in California, whose algorithms amplify misinformation and disinformation.

On June 19, Sen. Andrew Cardozo asked a question in the Senate: “Could the government review its advertising program and make sure we spend the majority, that is over 50 per cent — News Media Canada is suggesting 25 per cent, I’m suggesting the majority — of its advertising dollars in Canada on Canadian news media?”

We look forward to participating in Manitoba’s all-party committee, chaired by Robert Loiselle, MLA for St. Boniface.

Loiselle has noted, “It’s never too early to look at supporting the free press here in Manitoba and whether it be paper, radio, online media. We just want to see if there’s a way to support papers across Manitoba (in the) different ways we share information with Manitobans and in communities as well.” We couldn’t agree more.

Manitoba should seize the opportunity and show the rest of Canada what “Elbows Up” really looks like.

Paul Deegan is the president and chief executive officer of News Media Canada.