Madam Chair, ladies and gentlemen, my name is Marc Saint-Pierre, and I am the director general of government information services at Public Services and Procurement Canada, or PSPC for short. I am accompanied this morning by Louise de Jourdan, director of advertising coordination and partnerships at PSPC.
It's our pleasure to be here with you today to explain our department's roles and responsibilities to you as defined in the Treasury Board's new policy on communication and federal identity published last May, which relates to your important work.
As the main service provider for the federal government's departments and agencies, our department has two major functions that directly affect the media: first, advertising: and second, buying Canadian media sources.
As defined in Treasury Board's new Policy on Communications and Federal Identity, our main role with respect to advertising is fulfilled by the advertising coordination and partnerships directorate Ms. Jourdan is responsible for. These resources are available to hundreds of advertising and marketing specialists in the Canadian government. We advise and guide departments and agencies on the efficient implementation and management of advertising activities that comply with the government's laws, policies, and procedures.
Ms. Jourdan's directorate has regular discussions with associations and stakeholders in the industry about current practices and new trends. It also produces the Government of Canada's annual report on advertising activities, which you received a copy of.
Finally, the directorate manages the agency of record, a private company under contract to our department following a public tendering process awarded in June 2015. The agency of record is the only unit authorized to buy the vast majority of advertising space and air time at the lowest possible cost for the roughly one hundred government institutions subject to the Policy on Communications and Federal Identity.
Advertising activities in the Government of Canada are governed by the Treasury Board administrative framework and various rules to ensure sound management of advertising campaigns. First, departments and agencies must develop advertising projects that reflect the government's priorities and must submit them to the Privy Council, which is responsible for coordinating all advertising in the Government of Canada. The projects are then presented to cabinet, which decides which ones will be implemented and how much the overall budget will be. The cabinet also determines the maximum amount of funding for each investment and confirms the source of funding. Advertising funds can come from existing departmental resources or from the central advertising fund.
One of the basic principles of government advertising is that each department and agency is ultimately responsible for their advertising campaigns, including decisions on the type of media used. Institutions' media choice is based on a number of factors, including campaign objectives, target audience and market, campaign type, time and scope of the campaign, budget, and the cost of various media options.
You may recall that, in our 2014-15 annual report, total advertising expenditures were nearly $50 million, with 54% of these expenditures being earmarked for the purchase of television ads, followed by 28% to purchase advertising space on the Internet. Ten years earlier, in 2004-05, television ads accounted for 44% of expenditures, followed by 17% of expenditures for advertising in newspapers and dailies, and only 1% of expenditures for online ads.
We do not yet have official data for the 2015-16 fiscal year since the annual report is currently being drafted. This report will be made public no later than January 31. Provisional estimates indicate that we have total expenditures of nearly $42 million. For the period from April 1, 2016, to early October 2016, the fragmentary data on advertising purchased by the agency of record indicates a total of less than $10 million, with over 90% of expenditures having gone to the spring 2016 census campaign.
At its peak, in 2009-10, the Government of Canada spent approximately $136 million on advertising. Over the last six years, we have seen a significant decline in government advertising expenditures, averaging $80 million per fiscal year.
I would remind you that, in Budget 2016, the government announced a recurring additional reduction of $40 million per year. According to the data available, Canada is trending an expenditure of approximately $15.5 billion U.S. in advertising in 2017. The Government of Canada's planned expenditures will account for less than half of a percent of that advertising expenditure.
I'll turn now to the second function of our department, which is media purchasing. For over a decade we have been managing the electronic media monitoring program known as EMM. It provides an effective option on common services to help departments and agencies to meet their responsibilities in monitoring and analyzing the public environment. The program provides media sources to over 100 eligible departments and agencies. This assists departments and agencies with identifying and tracking current and emerging issues related to department policies, program services, or initiatives.
PSPC negotiates the purchase of major sources from content providers that have exclusive news distribution rights. The department provides access to roughly 60 Canadian news sources. This includes newspapers such as The Globe and Mail, La Voix de l'est in Granby, and the Saskatoon StarPhoenix, as well as other media products, such as news wire and transcript from television and radio.
Each year more than $6.5 million is invested in acquisitions from regional and national news sources in English and in French from various regions across Canada. More than 95% of these expenditures are earmarked for purchase of licences for print and online content produced by newspapers. This acquisition is essential for the government because it allows federal departments and agencies to use these sources legitimately and legally since they are, as you know, protected by copyright.
I would like to conclude my remarks with four short statements.
First, the choice of media for advertising campaigns is not within the purview of PSPC, but the institutions responsible for the advertising campaigns.
Second, Treasury Board's new Policy on Communications and Federal Identity, which came out in May 2016, indicates that digital media and platforms are the primary means for interacting with the public. Multiple channels are still used to meet the diverse needs of the public.
Third, Budget 2016 announced that the Canadian government's overall advertising budget in the foreseeable future would be modest and limited, far from the average spending in the 2009-15 period, which was more than $85 million annually.
Fourth and finally, PSPC will continue to work together with suppliers to purchase Canadian media sources within its budget allocation. The fast pace at which the news circulates is a technological challenge that government and industry must face. Our department will continue its efforts, working with its suppliers to maximize the delivery of sources in real time and in compliance with copyright.
On behalf of PSPC, I thank you for your attention. We would be happy to answer your questions to the best of our knowledge.
Thank you, Madam Chair.