Quebec companies start to redirect advertising dollars from web giants to news media

Is pulling ads enough to put pressure on Meta? Supriya Dwivedi discusses the latest moves by Canada to put pressure on Meta and Google in the standoff over C-18.

More and more Quebec advertisers are starting to shift their advertising spending away from the web giants and toward the news media.

The Association of Creative Communications Agencies, or A2C, which represents Quebec's advertising agencies, has announced that it has collected more than 75 commitments from companies, organizations and agencies to devote at least 25 per cent of their digital advertising investments to local media.

Some of the big names on the list include A. Lassonde, Desjardins, Fonds de solidarité FTQ, VIA Rail Canada and Metro and its subsidiaries, which include Super C and Jean Coutu, among others.

Three years ago, A2C launched the Mouvement média d'ici, calling on companies to support the media by committing to invest at least a quarter of their advertising dollars in the media. Two weeks ago, A2C launched a new appeal, this time promising to publicize the names of those who join the movement.

ARM WRESTLING OVER C-18

A2C's appeal came on the heels of actions on the part of certain media outlets and then by the Canadian and Quebec governments, announcing they would cease all advertising on Meta's platforms, notably Facebook and Instagram, in response to Meta's decision to block Canadian news. Meta and Google, in particular, are engaged in a tug-of-war with the federal government, whose recent Bill C-18 requires them to share a portion of their revenues with Canadian media.

The list of 74 companies includes, unsurprisingly, most of the major media, including Cogeco and Québecor, who were the initiators of the boycott.

INFLUENTIAL AGENCIES

In addition to the large companies and organizations mentioned above, there are also major advertising agencies such as Cossette, LG2 and Sid Lee, with between 350 and 465 employees each.

Nearly half of the signatories, in fact, are advertising agencies, which is no small feat. The commitment of these agencies - which represent hundreds of advertisers - is to propose "responsible media plans or marketing initiatives with the objective of reaching or surpassing the target of 25 per cent digital media investment in Canadian media."

Although this commitment is non-binding, it merely encourages investment in local media with the final decision resting with the customer, A2C President and CEO Dominique Villeneuve says that it creates an opening and that many customers are willing to invest a portion of their advertising dollars in local media.

Several other companies had already announced their intention to boycott the web giants, including major state-owned corporations such as SAQ, Loto-Québec and Hydro-Québec.

This report was first published in French by The Canadian Press on July 17, 2023.