The value of local media from the perspective of marketers

Dentsu's Sarah Thompson and the CMDC's Shannon Lewis ask brand leaders why local media is important for their marketing investments and the industry's transformation.

By Dentsu’s Sarah Thompson and the CMDC’s Shannon Lewis

Local media serves as an indispensable cornerstone in society, democracy and marketing. In light of recent developments, such as Meta’s decision on Tuesday to end news availability in Canada and the implementation of the Online News Act, it’s time we take a good hard look at the value of local media from the perspective of brand marketers.

In 2021, we at the CMDC started the Canadian Media Manifesto, which includes a pledge to invest 25% of digital media budgets in local outlets. This commitment empowers leaders to play a pivotal role in ensuring the continuous operation of essential Canadian outlets and the seamless flow of vital information to Canadian communities.

But our research has also shown that beyond just supporting news outlets, investing in local media also makes business sense. So, we wanted to get inside the minds of brand marketers to understand why local media holds such significance in their marketing investments and the industry’s necessary transformations. We were particularly interested in hearing how local media can enhance their marketing efforts and what changes they can make to ensure its sustained relevance and effectiveness in the ever-changing media and business climate.

“Telus has a long-standing history of supporting the communities where we live, work and serve. We recognize the critical role local media plays in fostering stronger communities and acknowledge our responsibility in supporting Canadian media as part of our digital marketing initiatives,” said Lisa Mack, VP of brand at Telus. “This is a vital component of contributing to a better, healthier media ecosystem for all Canadians.”

Building a healthier media ecosystem through sustainable practices is crucial, as it aligns with the “do good by doing well” philosophy. By focusing on sustainability and investing in local media, businesses can make a positive impact while achieving their business objectives and financial performance.

As we have witnessed the focus on sustainability, the integration of local media into ESG metrics is becoming more evident. Despite slower investment support for Canadian-owned media, marketers are increasingly recognizing the value of responsible and local media supply chains in their ESG initiatives. This shift underscores the importance of supporting a sustainable and socially responsible marketing approach.

For today’s marketers, sustainability must encompass more than just carbon emissions; investing in local media becomes a critical element of ESG goals. Embracing local media reaffirms a commitment to a sustainable future, fosters community engagement, and enhances brand reputation, customer loyalty, and business performance.

“Local media is critical to fostering awareness, advocacy and accountability on community issues,” said Andrew Rusk, VP of  marketing at Coast Capital Savings. “As a marketer, and a human, I worry about how the lack of constructive challenge from a weaker fourth estate can gradually cause communities to decline. In the shorter term, I also worry about having fewer channels to reach my target.”

Fragmentation of the media industry has resulted in massive challenges. Digital transformation initiatives and the reliance on platforms to achieve outcomes has forced local media voices out of the conversation. Second, the endless shifting media habits to the plethora of channels, as well as the demand for speed to market, has made marketers rely on fast-moving metrics, versus the slower offline data points for decisions.

“Digital attribution models are more sophisticated, timely and accurate in terms of return on ad spend metrics measurement, as opposed to offline media measurement tools, which are delayed and sample based,” said Raphaël Metter-Rothan, director of media at Desjardins. “Marketers may be inclined to lean towards shifting investments where they can gain real time insights, while locally owned media are trying to fight digital media giants from abroad.”

What is the ask from brand marketers? Unite. There is more value to marketers if Canadian outlets start to join forces and provide more scale and audience opportunity. For instance, the Local News Collective brings local news media companies to start-ups together to represent and innovate and is the largest local digital news network in Canada.

“It would be amazing to see publishers work more closely together, as a big and unified industry, to find the solutions as one,” said Metter-Rothan.

Marketing leaders are urging their colleagues to reconnect with the Canadian media landscape, understand its focus and priorities, and reap mutual benefits. “Addressing the issue starts with caring about the media’s contribution to civil society. I firmly believe that if the media understood the importance of this issue, we could easily find the will and budgets to build the thriving media landscape that Canada deserves,” says Rusk.