Groundbreaking 50,000-respondent survey shows
ads placed adjacent to stories covering politics, inflation and
crime perform as effectively as ads placed next to business,
entertainment and sports stories.
Results debunk common 'brand safety' myths
among key demographic groups for advertisers including Gen Z,
affluent American households, moms and more.
NEW
YORK, May 15, 2024 /PRNewswire/ -- Americans are
smart enough to know the difference between a news story and an ad,
underscoring the current standards used for 'brand safety' are too
broad and limit advertisers from engaging with valuable consumer
audiences. This is just one of the many insights revealed in a
study of 50,000 U.S. adults that Stagwell (NASDAQ:
STGW) released today.
Experience the full interactive Multichannel News Release here:
https://www.multivu.com/players/English/9266651-stagwell-global-future-of-news-study-advertising/
Recognizing that news is the foundation of a thriving democracy
and a critical marketing vehicle, Stagwell is launching
a series of 'Future of News' studies and events to fuel
discussions on the importance of advertising in news.
Stagwell's inaugural research for the series examines the
concept of brand safety—the measures taken to ensure a brand's
advertisements don't appear alongside content that could
potentially harm that brand's reputation. Because the current
approach to brand safety disproportionately hurts the news
industry, Stagwell created a study to determine the real impact of
ad adjacency.
The groundbreaking survey reveals that ads placed adjacent to
news topics such as politics, inflation and crime perform as
effectively as those placed next to business, entertainment and
sports stories.
"Our research shows brands shouldn't fear advertising on
news—but rather relish it. News junkies, who make up 25% of
Americans, are one of the most valuable yet under-tapped marketing
audiences," said Mark Penn, Chairman
and CEO of Stagwell. "Instead of feeding the vicious cycle of
news demonetization that hurts quality journalism the most,
advertisers should kickstart a virtuous cycle of investing in news
that allows brands to reach valuable audiences and gives quality
news content the financial stability it needs to thrive."
Additional findings include:
- Among Gen Z, the average purchase intent for brands whose ads
were placed next to high-quality news articles on the Middle East conflict was 65%, compared to 66%
for inflation and 67% for crime—differences that are statistically
insignificant. Purchase intent was 69% for sports (widely
considered a 'safe' news topic) illustrating a minimal four
percentage point difference between the 'riskiest' and 'safest'
topics.
- Among more affluent American households, the average
favorability ratings for brands whose ads were placed next to
high-quality, yet political news articles on former President Trump
and President Biden were each 72%—just two percentage points less
than brands whose ads were placed next to a non-political
entertainment story.
- Among moms, the average purchase intent for brands whose ads
were placed next to articles on inflation (a potentially negative
story), and business (a more neutral story) were each 70%, showing
no difference between the two. Purchase intent was only two
percentage points less for brands whose ads were placed next to a
news story about crime with the words "subway shooting" in the
title—words that get blocked as a matter of course with today's
brand safety practices.
"Brand safety considerations have become prevalent in the media
and marketing industries, but they require serious scientific
evaluation and more rigorous metrics to assess whether brands
really face dangers from news adjacency," said Dritan Nesho, CEO of
HarrisX, which conducted the study. "Our study shows clearly and
repeatedly that ads next to news content that is currently
considered 'not brand safe' performs on par with ads next to what
is currently considered 'brand safe.'"
Stagwell is committed to initiating data-driven discussions with
advertisers about their investment in news. This topic and more
will be discussed at tonight's inaugural Future of News summit
which will be held at Stagwell's global headquarters in
New York.
Interested parties can request a copy of the research here.
For additional questions, please contact
hello@stagwellglobal.com.
Methodology
The Future of News Study was conducted among 49,990 U.S. adults
from March 29 to April 19, 2024.
HarrisX, a Stagwell company, conducted the quantitative
survey-based online interviews. The sampling margin of error is
+/-0.44% for the total study.
The survey data was weighted to a nationally representative
sample of American adults across key demographics, including age,
gender, region, race/ethnicity, education, income. Click here
to read the full methodology.
About Stagwell
Stagwell (NASDAQ: STGW) is the challenger network built
to transform marketing. We deliver scaled creative performance for
the world's most ambitious brands, connecting culture-moving
creativity with leading-edge technology to harmonize the art and
science of marketing. Led by entrepreneurs, our 13,000+ specialists
in 34+ countries are unified under a single purpose: to drive
effectiveness and improve business results for their clients. Join
us at www.stagwellglobal.com.
About HarrisX
HarrisX is a leading global research consultancy that regularly
conducts major market research, public policy polling and social
science studies and consulting engagements in more than 40
countries around the world. It is a proud member of Stagwell Global
(STGW). Learn more at www.harrisx.com.
Contact:
Kara
Gelber
pr@stagwellglobal.com
View original
content:https://www.prnewswire.com/news-releases/stagwell-stgw-releases-news-advertising-study-revealing-it-is-safe-for-brands-to-advertise-adjacent-to-quality-news-content-despite-overblown-fears-302146457.html
SOURCE Stagwell Inc.