Contents

Introduction  1

Acknowledgements  1

Overview   1

2015 Amendments to the Act  2

2023 Advertising Expenditures  2

Main Points of 2023 Report  3

Auditor’s Recommendations  3

2015 Amendments to the Act 3

Digital Advertising  3

Issues Raised in the Report and Before the Committee  4

Committee Recommendations  5

Introduction

On May 27, 2024, the Standing Committee on Public Accounts held public hearings on the “Review of Government Advertising” (2023 Annual Report of the Auditor General of Ontario), overseen by the Cabinet Office and the Treasury Board Secretariat.

The Committee welcomes the Auditor’s 2023 findings and recommendations and now presents its own findings, views, and recommendations in this report. The Committee requests that the Ministry provide the Clerk of the Committee with written responses to the recommendations within 120 calendar days of the tabling of this report with the Speaker of the Legislative Assembly, unless otherwise specified.

Acknowledgements

The Committee extends its appreciation to officials from the Cabinet Office and Treasury Board Secretariat. The Committee also acknowledges the assistance provided by the Office of the Auditor General, the Clerk of the Committee, and Legislative Research.

Overview

Under the Government Advertising Act, 2004, the provincial government is required to submit advertisements to the Auditor General for review “to ensure, among other things, that” the advertisements are not partisan as defined under the Act.

The Act applies to ads that

government ministries, Cabinet Office, and the Office of the Premier propose to pay to have published in a newspaper or magazine, displayed on a billboard, displayed digitally in a prescribed form or manner, or broadcast on radio or television, or in a cinema. It also applies to printed matter that a government office proposes to pay to have distributed to households in Ontario by unaddressed bulk mail or another method of bulk delivery.

O. Reg. 143/15 under the Act gives the Auditor’s office authority to review digital advertising, including video, text, images and any combination of these that the government proposes to pay to have displayed on a website or digital screen. Advertisements meeting the above criteria are termed “reviewable items” and must be submitted to the Auditor’s office for review and approval to run.

Digital ads excluded from the Auditor’s review include those displayed on social media websites such as Facebook or X (formerly Twitter), or ads displayed on a website solely as a result of the government using a search-marketing service (e.g., Google Ads).

The Auditor explains that:

If our Office notifies the government office that the [reviewable advertising] item is not in compliance with the Act, the item may not run. However, the government office may submit a revised version of the rejected item for another review.

Since the Act came into force, the Auditor’s office has worked with the government to clarify the review protocols for websites and social media used in advertisements.

2015 Amendments to the Act

The original Act, which came into effect in 2005, “required the government to submit advertisements to the Auditor General for review to ensure, among other things, that they were not partisan.”

Under amendments to the Act in 2015, the Auditor General “cannot find an advertisement partisan under the Act as long as the advertisement avoids:

· using the name, voice or image of an elected official, or the logo of a political party;

· directly identifying and criticizing a recognized party or member of the Assembly; or

· including, to a significant degree, a colour associated with the governing party.”

In order to run, all ads must state that they have been paid for by the government of Ontario.

The Auditor notes that “our office continues to identify those advertisements that would not have passed our review under the original version of the Act,” such as flagging where “the primary objective of ads and/or information on their respective websites is to foster a positive impression of the government.”

2023 Advertising Expenditures

The Auditor reports that in the “fiscal year ending March 31, 2023, the government spent $33.72 million on advertising, less than half of what was spent the previous fiscal year” in part because of the “substantial decrease in advertising campaigns about COVID-19” post-pandemic.

In the 2022/2023 fiscal year, the office reviewed $28.86 million in costs for 74 submissions, including 923 advertisements.

The Auditor took issue with two ad campaigns with a total expenditure of $24.89 million (nearly 74%) of the government’s total advertising budget:

· Building a Better Health Care System campaign (Ministry of Finance)—$20.80 million (62% of total spending); and

· A Plan to Catch Up campaign (Ministry of Education)—$4.09 million (12% of total spending).

The Auditor reported that the government spent $4.86 million (over 14% of the total) on digital ads that were excluded from the Auditor’s review.

Main Points of 2023 Report

Regarding the two most costly ad campaigns (Building a Better Health Care System; and A Plan to Catch Up), the Auditor concluded that “the primary objective of these ads and/or information on their respective websites was to foster a positive impression of the government.” The Auditor noted that “elements of both campaigns would have been considered partisan advertising by our Office under the original Act.”

· The Auditor noted that “for the first year, a number of ministries ran relatively low-cost campaigns using only social media and/or search-marketing services.”

· The Auditor’s office “will continue to identify those advertisements that would not have passed our review under the former version of the Act.”

Auditor’s Recommendations

2015 Amendments to the Act

The Auditor noted that the 2015 amendments to the Act removed their office’s “discretionary authority to determine what constitutes partisan advertising,” and in the Auditor’s view “weakened the Act, potentially paving the way for publicly paid partisan advertising by government.”

The Auditor recommended “that the previous version of the Government Advertising Act, 2004 that was in force from January 30, 2006, to June 3, 2015, be reinstated, but also include an amendment that adds digital advertising as a reviewable medium.”

Digital Advertising

The Auditor reported that “similar to 2020/21, the government’s use of, and spending on, all digital advertising in 2022/23 was more than all of its spending on TV, radio, and print advertising combined.”

The Auditor recommended “that the government revoke Ontario Regulation 143/15 under the Government Advertising Act, 2004, to enable the Office of the Auditor General of Ontario to review all digital advertising paid for by the government, without exception.”

Issues Raised in the Report and Before the Committee

The Committee heard that the Treasury Board Secretariat’s role includes “holding the overall policy responsibility” for the Government Advertising Act, 2004, and its supporting regulation. Cabinet Office oversees compliance with the Act and determines funding amounts allocated to each individual campaign.

Cabinet and Treasury Board Secretariat officials emphasized the role of the Ontario public service in “providing non-partisan communications advice and direct services to the elected government and its staff … in accordance with the Public Service of Ontario Act.”

The committee also heard that while Cabinet Office responsibility for advertising under the Government Advertising Act, 2004 includes all government ministries, it does not include government agency advertising (such as Metrolinx or the LCBO).

Officials explained that Cabinet Office “now has a centralized role in directly delivering the planning, strategic development, creative production, media buying and execution of all ministry advertising initiatives. We do this in partnership with the Premier’s Office, deputy ministers and communications directors across government.”

The Committee asked how ad campaigns are planned and developed. It was explained that there is an annual planning process that ministries undertake as part of their communications planning. The committee also asked about the evaluation of the business goals and the benchmarks that are supposed to be met through expenditures on specific advertising campaigns. They asked the Ministry to explain how it quantifies and follows up to see if a government advertising program has been successful.

Officials explained that Cabinet Office works with ministries to articulate the business and marketing objectives for an advertising campaign and to develop appropriate metrics. There is a “robust tracking process” that occurs while campaigns are underway to ensure that they reach their intended audience as well as a post-campaign assessment.

The Committee asked about the role of the non-partisan public service in ensuring the factual accuracy of government advertising. It was explained that each ministry is responsible for fact-checking the accuracy of the information provided in its own advertising campaigns.

The Committee noted that over the past decade, government advertising has shifted away from traditional media to using more digital platforms. The Committee asked about the Auditor General’s recommendation that social media and search engine advertising be included in the scope of the Government Advertising Act, 2004. Officials responded that while “the government is maintaining the status quo at this time,” it also “follows the spirit of the act for those non-reviewable assets, whether part of a larger campaign or standalone.”

Government officials provided an overview of the full scope of advertising in 2022-23, which included 24 campaigns ranging from cancer screening campaigns, to driving awareness of post-pandemic education catch-up programs, and raising awareness of opportunities in the skilled trades. The Committee heard from government officials that one of the most successful initiatives in terms of impact and reach was the Building a Better Health Care System campaign, which was delivered in 17 languages and reached more than 90% of Ontarians over the age of 18. On social media platforms, the campaign reached over 9 million Ontarians on Meta (formerly Facebook), and 2.6 million on TikTok.

Committee Recommendations

The Standing Committee on Public Accounts recommends that:

1. The government take steps to modernize the Government Advertising Act, 2004, by addressing the Auditor General’s recommendations, including:

a) reinstating the broader oversight provisions that were in place prior to the 2015 amendments, to restore the Auditor General’s ability to assess the overall tone, content, and purpose of government advertising;

b) expanding the scope of reviewable advertising to include digital and social media content—particularly paid content—on platforms such as Meta, X (formerly Twitter), and YouTube; and

c) requiring government agencies, in addition to ministries, to comply with the Act’s advertising review requirements for all publicly funded campaigns.

2. The government should publish an annual, plain-language summary of all government advertising expenditures—including both reviewable and non-reviewable campaigns—and indicate which campaigns the Auditor General flagged as inconsistent with the standards of the original Government Advertising Act, 2004.