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The Canadian government's recent announcement of Bill C-18 and the response from Google and Meta have caused a ripple effect in the Canadian advertising industry. To gain more insight into the impact, we spoke with Bruce Neve, President of True Media Canada.
Profectio - What was your first reaction when you heard the news?
Bruce - The actions by meta and google were expected and anticipated. We advise our client base in early May of the possibility and the implications. Then I said “ what a clusterfck”.
Profectio - How will this impact consumers?
Bruce -
Reduced Access To News
Audiences on key platforms may find it more difficult to access news content. Links to articles,
news websites, and related information may be limited or unavailable, leading to a decrease in the
availability of news stories and updates.
Impact On Information Discovery
News linking plays a crucial role in enabling users to discover and explore a wide range of news
sources and perspectives. Without the ability to follow links to news articles, audiences may
experience a narrower range of information and potentially miss out on diverse viewpoints.
Dependence On Platform-Curated Content
In the absence of news linking, platforms may rely more heavily on their own curated content or
algorithms to deliver news to users. This could result in a more limited selection of news sources
and potentially increase the influence of platform biases or preferences in shaping the news that
audiences are exposed to.
Fragmented News Consumption
News linking often allows users to navigate seamlessly between different sources and topics. A
suspension of news linking could lead to a more fragmented news consumption experience, as
users would have to manually search for specific news sources or rely on platform-providedProfectio - How will this impact the advertising industry?
Bruce - How is the disruption, potentially, of news linking going to affect the brands and advertisers in search and social?
Brand Visibility
Brands that rely on news-related content for visibility and brand exposure may experience a decline in their visibility if news linking is suspended. This can be particularly relevant for brands that actively engage with news stories or advertise alongside news content.
Targeted Advertising
News content often provides contextual relevance for targeted advertising. If news linking is suspended, advertisers may have limited access to news-related contexts for targeting their ads effectively. This could potentially impact the precision and effectiveness of their ad campaigns.
Ad Placement Options
With news linking suspended, platforms may need to explore alternative ad placement options or
adjust their advertising algorithms. This may result in changes to ad inventory, placement
strategies, and targeting capabilities, requiring brands and advertisers to adapt their approaches
accordingly.
Shift In Advertising Strategies
Brands and advertisers may need to reassess their advertising strategies and explore alternative
avenues to reach their target audiences. This could involve diversifying their ad placements across
other content categories or exploring partnerships with non-news publishers to maintain visibility
and engagement.
Profectio - How will this impact news outlets/ publishers?
Bruce - Despite its benefits, the law's implementation could present certain challenges.
Smaller publishers may struggle to receive fair compensation, potentially widening the
disparities within the media industry
The law may unintentionally stifle innovation, discouraging tech companies from introducing
new features or services involving news content. This could hinder the development of new digital
platforms and limit innovative news delivery methods
Enforcement of Bill C-18 may lead to international repercussions, with potential retaliation
from tech companies impacting the digital ecosystem and broader economic implications
Provide much-needed financial support to domestic publishers, bolstering their sustainability
and ensuring the availability of high-quality journalism
Promotes fairness and equity, addressing the issue of tech companies profiting from news
content without adequately compensating publishers
Potential to drive increased investment in journalism, empowering news organizations to hire
more journalists and produce accurate, reliable, and in-depth reporting
Profectio - Is C-18 the right move by the Canadian government?
The intentions are good, since 2020, over 3,000 editorial and related jobs have been lost and over 50 media outlets have closed in Canada and Canadian journalism and voices are diminishing and should be supported.But the Bill as structured, is not the best solution and even if accepted by the tech co’s.
It may favour /channel revenue to large scale Canadian publishers vs stimulating a diversity and breadth of voices . Small and independent media outlets, who look to social media to build their audiences, will suffer a disproportionately larger negative impact..
If the tech co’s stick with their guns, the net result could be a Canadian government that looks weak and confused on the Global stage, the lost value from the disappearance of free links alone will run into the hundreds of millions of dollars and less Canadian news easily accessible.
Companies mentioned in this article:
(click on the link to view the agency’s Vendor Directory listing)
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