Amid rising Canadian patriotism – in response to tariff threats made by U.S. President Donald Trump – as well as tech giants questioning the value of news, the spotlight is once again on the role of responsible media in Canada.
Last week, Google released research that shows news has minimal value for its advertising business in the European Union (EU). This raises concerns for potential implications for Canada, particularly given Google’s current commitment to pay Canadian and Australian publishers for their content. It’s unclear whether the EU research findings could trigger changes to Google’s $100-million commitment to Canadian publishers or result in renegotiations.
The report came as a surprise to Karine Courtemanche, EVP of Plus Company Canada and president of the Media Group. She says she continues to believe in Google’s commitment to Canadian news, pointing to the company’s role in helping to launch agency group’s research – Unlocking the Trust Premium: A Canadian News Effectiveness Study – just a few weeks ago.
“Of course, I don’t have a crystal ball, and large corporations often receive new directives from headquarters that don’t always align with what we hear on the ground in Canada,” Courtemanche says. “I truly hope the direction doesn’t change, as we’ve valued their dedication to Canadian journalism.”
A major finding from the Canadian News Effectiveness Study is that trust is fundamental to creating brand affinity. The more trusted a publisher, the higher the brand rating. For instance, advertising in trusted environments can lead to a 25% increase in brand rating, the report found. Overall, news publishers rated 35% above the baseline level of trust, with local news outlets seeing a further 16% uptick in perceived trustworthiness among their local audiences. This effect is more pronounced in Quebec.
When Cossette Media, part of Plus Company, introduced its Responsible Media Solutions (RMS) unit in 2022, one of its four pillars was to support quality, fact-based journalism through investment in Canadian media at the local and community level – a focus that continues today.
Scott Stewart, EVP and managing director of Epitaph Group, acknowledges Google’s recent comments about the EU, but notes that the tech giant has shown financial support for Canadian news and has made a concerted effort to share revenues with Canadian publishers and journalists.
“I wouldn’t expect Google would change that position here,” Stewart says. “Remember, the EU did just hit them with a pretty big anti-trust violation case with the European Commission fining them nearly 2.5-billion Euro. So, things aren’t really all that good between Alphabet and the EU right now. At the same time, whilst a bit harsh in saying news has no value for their European model, for all intents and purposes, the Google statement isn’t wrong either.”
Stewart adds: “News publishing has been using social channels to voluntarily share their content for the purposes of scaling their audiences – not the other way around. And when governments involve themselves in jurisdictions that they probably shouldn’t, whether that is because of anti-trust or monopoly-busting, this is the type of response we should probably expect from big tech and actions like Meta news ban here in Canada as part of their response.”
We are Canadian
Thanks to Trump’s tariff threats and even his musings about annexing Canada as the “51st State,” Canadian patriotism is in full bloom – across products, media and the attitudes and behaviours of Canadians themselves.
Devon MacDonald, president of Cairns Oneil, says that brands across the board are adapting their strategies to demonstrate their Canadian credentials – media properties included.
“We have such an inter-connected network of platforms, data and people that outside of broadcasters and some news publications, being Canadian is not a straightforward answer,” MacDonald points out. “There are a large number of clients who have always used local media as a strong part of their mix. The current movement around buying Canadian is giving them even more confidence in their choices.”
In September 2021, the Canadian Media Directors’ Council (CMDC) launched The Canadian Media Manifesto to encourage a healthier and more socially responsible Canadian media ecosystem. The initiative called on agencies and advertisers to allocate 25% ($380 million) of digital media investment to Canadian media by 2025. More than 1,500 marketers and media leaders signed on.
“This is a big moment for Canadian leaders,” says Shannon Lewis, president of the CMDC. “With much uncertainty around us, the choices we make now really matter. Whether we invest in Canadian talent, innovation or local media, we’re not just supporting the economy – we’re strengthening who we are as a country. That’s why we launched the Canadian Media Manifesto, to support local media and remind ourselves how we stay informed, connected and accountable.”
Sarah Thompson, chief commercial officer at Mantis Group, says journalistic content continues to offer “value to advertisers, as the environment is excellent for advertising. It has a value for Canadians, as we have a connection to society.”
She adds, “Still, there is an entire issue with our local media ecosystem and the value it creates for our economy and society at large. Do we value the creation of quality information, or do we value only the mass distribution? There is also the challenge of a decline in trust in some forms of journalism as we have had an increase in algorithmic controls and misinformation. When falsehoods are presented to Canadians more than quality journalism, we have an issue with our ability to understand facts and to be connected in society.”
