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Home > Information > Advertising Coordination
Government of Canada Advertising Renewal
(Continued)
Frequently Asked Questions
General
Canadian Content
Agency Selection
Agency Remuneration
Agency of Record
Building Government Capacity and Strengthening Transparency
General
| Q1. |
Why has the Government of Canada (GoC) requested changes to the administration of its advertising practices? |
| A1. |
Following a request from the Prime Minister to the President of the Treasury Board to better manage the GoC advertising procedures and to ensure value for money, changes were introduced to create much greater competition for GoC advertising business and to improve the value of what the GoC receives for its investments in advertising. |
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| Q2. |
Were industry stakeholders consulted prior to the implementation of the changes to the administration of GoC advertising practices? |
| A2. |
Yes, the Honourable Ralph Goodale, Minister of Public Works and Government Services and Minister responsible for Communication Canada, made a commitment to consult industry stakeholders on how to implement the proposed changes in a manner that is transparent, fair, and focused on value for money from a quality and cost perspective. |
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| Q3. |
Who attended the consultations? |
| A3. |
Representatives from 22 government departments and 66 advertising agencies and industry associations attended the consultation sessions. In addition, six written submissions were received – four from agencies who had attended the meetings, and two from agencies who had not attended. |
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| Q4. |
Where were the consultations held? |
| A4. |
Consultations were held in Toronto (March 4, 2003), Winnipeg (March 5, 2003), Vancouver (March 6, 2003), Halifax (March 10, 2003) and Montreal (March 13, 2003). Submissions were also solicited via the Canada Site at canada.gc.ca and 1 800 O-Canada. |
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| Q5. |
What issues were addressed during the consultations? |
| A5. |
Five issues were highlighted for discussion in the consultations: Canadian content, agency selection, agency remuneration, agency of record and capacity building. |
Canadian Content
| Q6. |
How has the requirement for Canadian Ownership/Canadian Content in advertising changed? |
| A6. |
Previous to this announcement, only 100% Canadian owned advertising agencies were eligible to do business with the Government of Canada (Canadian Ownership). The level of Canadian content is now set at 80%, which effectively increases the potential number of suppliers and therefore increases competition for Government of Canada advertising business. |
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| Q7. |
Why has the Government of Canada decided to move from a Canadian Ownership requirement to a Canadian content requirement? |
| A7. |
The Government of Canada decided to move to a Canadian Content requirement to treat advertising like other services purchased by the GoC. |
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| Q8. |
What are the benefits of the Canadian Content requirement? |
| A8. |
By allowing a larger amount of agencies to compete for GoC business, the requirement now increases competition, value for money, and transparency. In addition, it is fair in that it applies equally to all firms, and is consistent with practices in other jurisdictions in Canada. |
Agency Selection
| Q9. |
Why is the Government of Canada moving away from assigning one advertising agency per department? |
| A9. |
This change is intended to increase and broaden competition for government advertising business by:
- Providing a greater number of competitive opportunities;
- Opening competitions to a greater number of suppliers; and
- Offering departments more flexibility to use a variety of suppliers.
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| Q10. |
What will be the new approach to the selection of advertising agencies? |
| A10. |
The following three procurement tools will be used to select advertising agencies:
- Standing Offers will be placed for projects valued up to $75,000;
- A supply arrangement consisting of pre-qualified firms will be established for projects valued between $75,000 and $750,000; and
- Requests for proposals will be published for projects valued over $750,000
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Agency Remuneration
| Q11. |
Why has the Government of Canada moved away from commission-based remuneration and moved towards a remuneration system based on hourly rates and fees? |
| A11. |
This is consistent with the Communication Canada review, which found that almost twice as many advertisers used fee-based remuneration models as opposed to a budget-based commission method. |
Agency of Record
| Q12. |
What is the Agency of Record (AOR)? |
| A12. |
The Agency of Record is the supplier on contract with the Government of Canada, through which media buying must take place. |
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| Q13. |
Will the Government of Canada retain the services of an Agency of Record? |
| A13. |
Yes, the Government of Canada concluded that it should retain the services of an Agency of Record. This decision was based on the recommendation of the Association of Canadian Advertisers, which prepared an independent and impartial study of the government's requirements relating to the use of an Agency of Record in January 2003. |
Building Government Capacity and Strengthening Transparency
| Q14. |
In what areas will the Government of Canada increase its professional capacity in dealing with the coordination of advertising activities? |
| A14. |
The Government of Canada will increase professional capacity in dealing with the coordination of advertising activities in the following areas:
- Coordination and planning services;
- Advisory services;
- Training and development; and
- Accountability and transparency.
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| Q15. |
How will accountability and transparency be measured? |
| A15. |
An annual report on advertising will be published this year and an internal audit is planned for 2005. |
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