• by Laurie Sullivan  @lauriesullivan, September 26, 2024

Advertisers have been warned by media groups not to blacklist news agencies over unsubstantiated fears. Some say these concerns could damage the reputation of news organizations to responsibly serve ads next to high-quality, relevant content.

Google and Microsoft for years have attempted to ensure that ads serve up next to high-quality content. Executives at those companies -- and others including The Trade Desk and Integral Ad Science -- continually keep an eye out for a mismatch of content.

Mark Penn, chief executive officer of Stagwell and former CSO at Microsoft, told the Financial Times that “brand safety has been causing advertisers to shy away from news, but has been massively overblown."

He said there are "a fair number of marketers who have intentionally zeroed out of news to focus on sports and entertainment," adding that journalism is underfunded because news is under-monetized.

A survey of 22,116 adults in the U.K. conducted by Stagwell research consultancy HarrisX 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-themed stories.

The research shows that brands should embrace advertising on news platforms rather than shy away from them.

Investing in news offers business leaders the ability to reach extremely valuable audiences. According to the new study, 25% of those in the U.K. are “news junkies,” and on average they check news four times daily, reading nearly five articles.

Among the Gen Z demographic, the average purchase intent for brands with ads placed next to high-quality news articles on the Middle East conflict was 61%, compared with 58% for inflation and 57% for crime.

Many marketers want to avoid placement next to news stories focused on current events, with the belief that people are less likely to feel favorable to their brands with these placements than if they are advertising alongside entertainment stories.

However, the study found that purchase intent was 59% for entertainment, which is considered to be a "safe" news source.

Among mothers, the average purchase intent for brands that had ads placed next to articles on crime -- and sports, which is considered more neutral content -- were each 66%, showing no difference between the two.

The study points out that news websites have been impacted by the widespread use of software that identifies hundreds of keywords, to avoid automated processes of serving ads next to or near specific topics in articles.