Government is moving Ad Dollars to Digital and Radio

Government spending shifting towards digital: Report

Radio also a beneficiary of shifting spending

Chris Powell September 01, 2015

The internet and radio are the biggest beneficiaries of recent shifts in government advertising, according to a new report from Newspapers Canada, with investment increasing 30% and 82% respectively in the most recent reporting period.

The federal government spent $75.2 million on advertising in 2013-14, according to the report, with traditional media accounting for more than two thirds of that total ($56.8 million).

But while government spending against traditional media was up slightly over the previous year, the report noted it had also fallen significantly since reaching $114.3 million in 2009-10.

Daily and community newspapers attracted a combined $4.3 million in spending in the most recent fiscal year, accounting for approximately 7.6% of the government’s total advertising investment. Dailies attracted $2.2 million in spending, a 58% increase from $938,843 in the previous fiscal year.

Community newspapers attracted $2.09 million in government spending, a total that also includes spending of $1.2 million on Official Language publications, ethnic publications and Aboriginal publications. According to the report, this means annual government spending of just $1,021 in each of the country’s 849 community publications.

While television attracted an industry-leading $26.7 million in government spending, its share of total revenue fell to 46.4% from a high of 60.1% the previous year. The internet, meanwhile, surged forward with government spending of $15.6 million, its share of total government spending increasing to 27.05%.

The report noted internet spending has increased steadily from less than 1% in 2002-03, following a global trend that has largely come at the expense of print. The report also noted radio’s share of government spending grew from 2% to 12% between 2011 and 2014.

“The government should and must communicate the programs and services it provides directly to citizens and get the best value for the taxpayer’s money,” said the report. “But the way in which it chooses to advertise says a lot about what media it values, and why.

“TV and internet ads work to build brand, not to inform. Newspapers generate debate and serve as a forum for discussion.”

The report details several high-profile advertising initiatives, including an $11.3 million “Better Jobs” campaign from Human Resources and Skills Development Canada encouraging youth to pursue education in so-called “high demand” fields, and informing them of programs supporting training and skills development.

Other large government campaigns included Finance Canada’s $10.5 million Economic Action Plan awareness campaign, informing Canadians of the programs and benefits available to them through the plan, and a $7.6 million campaign from Industry Canada providing details about the government’s telecommunications policy and measures being taken to improve services and costs for consumers.

The report also detailed a reported $3.4 million in public notices, an area that newspapers are fighting to retain as online plays an increasingly important role in their dissemination.