When the Government of Canada spends more on advertising with China-based TikTok ($1,113,056) than on all Canadian print publications combined, it highlights significant flaws in government advertising procurement policies.
Doug Ford’s Pro-Media Initiative
Ontario Premier Doug Ford has taken a notable step by directing crown corporations such as the LCBO, Ontario Cannabis Retail Corp. (OCRC), Ontario Lottery and Gaming Corporation (OLG), and Metrolinx to allocate 25% of their advertising budgets to Ontario-based news businesses. This policy aims to support local journalism without additional taxpayer expenses.
Historical Support for Journalism
Government advertising has historically been a crucial revenue source for Canadian newspapers, dating back to the Halifax Gazette in 1752. Programs like the former Publications Assistance Program ensured Canadians had access to quality news by subsidizing postal delivery for nondaily newspapers.
The Current Struggle
Today, Canadian news publishers face declining advertising revenues, dropping from $3.55 billion in 2012 to under $1 billion now. Despite this, four out of five Canadians still read newspapers weekly. Governments can better support domestic news businesses by adjusting their advertising spending policies.
The Power of Procurement
Procurement is a powerful government tool that can advance socio-economic policy objectives, including job creation and better outcomes. Ontario’s policy is not the first of its kind; New York City’s Local Law 83 requires agencies to allocate 50% of their advertising budgets to ethnic and community media.
Encouraging Broader Adoption
Governments at all levels, as well as major corporations like banks, telecom companies, and retailers, should follow Ontario’s example. Allocating 25% of advertising budgets to local news publications will help sustain high-quality journalism, enabling reinvestment in Canadian journalistic content and digital innovation.
By adopting such policies, the federal government and other provinces can help ensure that news publishers continue to hold the powerful accountable, keeping communities informed and engaged.