Brand safety has emerged as a critical concern for advertisers. According to the VAB, a company’s brand reputation constitutes around 20% of its enterprise value – and with 80% of marketing professionals identifying brand safety as a major concern, the stakes are high.1
Advertisers have long been cautious of protecting their brands’ reputation by carefully choosing where their ads appear, often avoiding placement next to harmful content, including news content, worried it may deteriorate their brand. However, a new study proves otherwise.
A recent study by Stagwell sheds light on the efficacy and safety of advertising adjacent to news content, debunking several myths surrounding brand safety concerns. This new data provides us with an opportunity to revisit the conversation on how and why brands should leverage news advertising – even amidst a big election year – and how advertisers can strike a balance without over-relying on it.
News is Safe for Brands
Stagwell’s groundbreaking survey of 50,000 U.S. adults reveals that ads placed next to news pieces covering politics, inflation, and crime perform as effectively as those placed next to business, entertainment, and sports stories.
Gen Z is a high-value demographic, and advertisers should be keeping track of and capitalizing on their viewership habits. Stagwell’s research reveals that among this audience, ads placed next to articles on crime have a purchase intent of 67%, with inflation at 66% and sports at 69% – illustrating that for more sensitive topics like crime and inflation, purchase intent is still nearly equivalent to that of less sensitive topics like sports.2
On top of this, CNN and Fox News are respectively the number 1 and number 3 highest reaching cable networks for adults ages 19 and up. Brands might miss valuable audiences when choosing to forego advertising in news programming.3
These findings are crucial for advertisers who have traditionally shied away from news content due to anticipated risks, because the truth reveals a different story. Stagwell’s study suggests that viewers can discern between news stories and ads, suggesting that current brand safety standards are too cautious and may limit engagement with valuable audiences.
Added Brand Trust
Contrary to popular belief, advertising in news programming can actually build brand trust and marketers can use cable news to drive optimal advertising results.
The IAB’s 2020 “News Trust Halo” report found that 84% of news consumers feel that advertising in news has a positive effect – either increasing or maintaining brand trust.4 The report also concluded that less than 10% of news consumers think sensitive content has a negative impact on the advertiser, illustrating the menial effect on brand image.4 And as Forbes notes in a 2021 article, high-quality news sources have been shown to increase brand favorability, research intent, and purchase intent, making news a powerful platform for brand-building.5
Unique Reach and Audience Engagement
In 2023, nearly 3 billion viewing hours were spent on cable news, demonstrating its significant reach. According to Comcast aggregated viewership data, cable news audiences are often highly engaged and have a higher household income – illustrating how incorporating news advertising into media plans can deliver crucial incremental audience reach. In fact, 66% of households reached by news were exclusively reached by news, again, showing how brands miss valuable audiences when they don’t advertise in news.6
Viewers are also flocking to news via Free Ad-Supported Streaming TV (FAST) channels, bringing in more inventory for advertisers to capitalize on in this category. In the past year, 25% of households have consumed news content via a FAST channel – a substantial percentage amounting to over half the size of the cable and network news audience.7 And these viewers are not just occasional viewers; they are consistent and dedicated, with over three quarters (77%) of FAST news audiences watching at least three times per month.7
Balance is Key
While the value of news advertising is clear, it’s critical that political advertisers avoid over-indexing on news programming. Over-reliance on news – or any one category for that matter – could potentially lead to diminishing returns and missed opportunities to engage broader audiences. Political advertisers should keep their media plans balanced and be sure to not over-index on news, optimizing across diverse TV programming to reach valuable audiences. TV advertisers at large should aim for a balanced mix of news and non-news content, guided by data-driven, audience-led strategies.
In today’s complex and fragmented media landscape, across channels and technological mediums, news remains a gateway for reaching engaged, harder-to-find audiences. Elections present a greater opportunity for advertisers to reach viewers tuning into news, with recent research finding that 59% of people watch more news programming closer to an election, suggesting that viewers intend to ramp up their TV viewership ahead of November.8
Given this, many engaged viewers will be watching news this season, so all advertisers should lean into news with comfort, knowing it is brand safe and an incredible value-add.
By understanding and utilizing relevant insights from studies like Stagwell’s, brands can leverage news content strategically, ensuring their messages resonate while winning the race with brand safety.
To learn more on how news advertising can benefit your business, contact us.
Sources:
1. “What is Brand Safety?”, Video Advertising Bureau, 2024.
2. “Stagwell (STGW) Releases News Advertising Study Revealing It is Safe for Brands to Advertise Adjacent to Quality News Content Despite Overblown Fears”, Stagwell, 2024.
3. Comcast Aggregated Viewership Data 2022 Monthly averages and full footprint.
4. “News Trust Halo”, Interactive Advertising Bureau, 2020.
5. “Advertising In Reliable News Sources Provides Stronger Brand Effectiveness”, Forbes, 2021.
6. Comcast Aggregated Viewership Data from Q1 2023 campaigns that included news.
7. Comcast aggregated ad exposure data for TV and streaming, Time Periods used: 2023=Jan-Dec 2023 and 2024=Jan-May 2024, Cable/Network news includes sources like: ABC News, CBS News, CNBC, FXNC, MSNBC, and NBC News. FAST news includes sources like: XUMO Local News, Pluto News, Local Now, and Cheddar. Total HHs.
8. Kantar Consumer Survey of Political Viewpoints. N=1240 Registered Voters. 6/10/24 – 6/13/24.
