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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 Marissa Cristiano, Group Account Director, Cossette Media.
Profectio - What was your first reaction when you heard the news?
Marissa - “Oh no”. I think many of us were hoping that it wouldn’t come to this and that Meta and Google could work with lawmakers to come to a solution instead of proceeding to blocking.
Working together is the way forward. Advertisers, publishers, distributors, aggregators, social and digital platforms - We all have a role to play in creating a media and news ecosystem that we want to participate in and enabling stories that matter to get made and seen.
I also wasn’t entirely surprised. The fact is that this did not happen overnight. Both Meta and Google had said they would proceed to block news should the bill pass in its proposed form.
Both parties have pointed to how the bill - in its current form - is flawed. It’s important to note how differently each company has responded. Meta proceeded directly to blocking, while Google has continued to propose amendments and try to come to an agreement.
Google and Meta have a tremendous amount of power that is fueled, in part, by what we as advertisers spend with them. We’re seeing that culminate right now. They literally have the power to influence the democratic process and make it harder for Canadians to access information about issues that affect their health, finances and communities. It also makes you realize how much ad dollars enable the world and the responsibility that we have as advertisers.
Profectio - How will this impact consumers?
Marissa - Consumers won’t be able to access the news via Facebook and Google( if they pause) .It means more effort to stay informed. Consumers will have to be more intentional in seeking out the news.
Instead of casually browsing Facebook or Instagram and having a story from a publisher - for example, a Postmedia or Narcity- pop up, or have updates on an issue pop up in your Google search, you’ll have to take specific actions to stay informed and choose your sources.
You’ll have to visit publishers directly and search on-site for the stories you want or need to see instead of seeing them show up in Google News or Google Search. News will still be available via TikTok, Snap and Twitter. There is always TV, print and radio as well. Signing up for push notifications from your favourite publishers, or Apple News notifications is a great way to stay on top of news updates while driving traffic to your local publishers.
Profectio - How will this impact the advertising industry?
Marissa - The obvious one is that ads will not appear alongside news content on Facebook and Meta. News
outlets will be missing out on a revenue stream ( Meta and potentially Google) for ad dollars.
News has suffered disproportionately in the past few years and throughout COVID. There has been a false perception that news outlets are risky and “not brand safe” environments due to the proliferation of fake news and polarities around current events like COVID, elections and a global recession. Industry studies debunk this, but advertisers are slow on the uptake.
Our hope - and what we’re advocating for at Cossette Media - is that advertisers are spurred to increase their investment with news publications directly. We’re at a critical juncture, where we can diversify the media mix and how ad dollars are distributed.
Profectio - How will this impact news outlets/ publishers?
Marissa - News outlets and publishers will be the ones who suffer most.
We’ve heard anecdotally from publishers that Google and Meta provide up to 75% of referral traffic to Canadian news players digital platforms. Some local publishers have built their business models off of these platforms. They’re going to be missing out on vital sources of traffic and subscription growth.
We discourage Meta and Google from pausing news content and encourage them to work with the government on finding a solution that works for everyone. Digital and social platforms have become such an important way that consumers stay connected and that publishers monetize.The future of technology and the future of journalism are intertwined. Technology and innovation will drive the future of journalism and make the stories that matter more accessible locally and globally. It’s also vital to keeping local publications and start-up news organizations growing and innovating. These smaller and more localized players create a varied news ecosystem that benefits all Canadians.
Profectio - Is C-18 the right move by the Canadian government?
Marissa - A methodology to compensate publishers for the content they create and the engagement they are driving is definitely needed.
The bill isn’t perfect - there are details around the CRTC’s involvement and how “news” is being qualified that need to be addressed, but it’s a step in the right direction in supporting local publishers and compensating them fairly for the content and engagement they provide.
We want a strong media ecosystem that incubates local news and focuses on high-quality content and journalistic integrity. Ultimately, Meta, Google and lawmakers need to come to a mutually beneficial agreement for that to happen.
Companies mentioned in this article:
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