News addicts are more likely to show interest in the brand and buy the product. They will retain a more favorable view of the brand, trust them more and recommend them to others.
Super Bowl commercials aren’t cheap. This is the amount of payment for the brand.
Brands like Dunkin’, Uber Eats and Coors Light are willing to pay millions of dollars for Super Bowl commercials
- Research shows that “news addicts” are valuable demographics for advertisers, indicating higher purchasing intentions and brand trust.
- Brand safety concerns, often based on outdated block lists, have been exaggerated and missed opportunities for advertising within news content.
- Advertising within the news platform has proven effective, resulting in a higher return on ad spend compared to other paid media channels.
- The number of “exclusive news addicts” who primarily consume news is growing representing a growing target audience.
A quarter of Americans check the news more than five times a day. They tend to be hungry, consume media frequently, and receive more money and more education.
In a political and economic environment where everything is constantly changing, more and more people are checking news websites on their mobile phones. A wise marketer will see a simple opportunity there.
However, many brands have been completely withdrawn from digital news. why? An unreasonable fear of “brand safety.” But what are the brands really missing when they’re not advertising on news platforms?
For one thing, they write down the shocking audiences that make up a large section of the population. Approximately 80.4 million US adults follow the news very closely.
News addicts are more likely to show interest in the brand and buy the product. They will retain a more favorable view of the brand, trust them more and recommend them to others.
The average “purchase intention” for news addicts is 66%-16 percentage points higher than the general population, and according to Stagwell’s Ad Impact Survey, we tested a mix of 20 brands and 20 ads in various formats in 20 brands and key sectors: travel/hospitality, consumer packaged products, financial services and automobiles. (Studies define those with intent to buy as those who say they are more likely to buy or use it from a brand within the next six months.)
This section includes the majority of world leaders. 90% of CEOs and executives are also news addicts.
Needless to say, “exclusive news” addicts – 37 million (14% of US adults) follow the news very closely, but not engaged in sports or entertainment as well.
By not advertising in the news, the brand is completely abandoning 14% of the adult population. This is a group showing more post-AD exposure lifts than the average American. In other words, it’s a great benefit from brand reputation measurement scores such as favors and trust after displaying an ad. These are individuals who are eager to learn more about information and respond better to advertising.
Additionally, the number of exclusive news addicts is on the rise. Just a year ago, they made up 11% of the population. More than 7 million US adults have now been converted. It jumps nearly three points to the number of news addicts.
Brand safety concerns are exaggerated
Brands that aren’t investing in the news are missing out on the opportunity to drive real business outcomes.
I know why brands aren’t investing in the news. It is the exaggerated “brand safety” movement that turned real concern into brand censorship.
It is an organized coalition that conspires to demo unfavourable content. The Global Alliance of Responsible Media, a currently split advertising coalition that has created subjective guidelines for determining content that is suitable for advertising support, is a prime example.
It’s an outdated block list that keeps ads from being placed in articles along with chicken “breasts” and “shots” and “Ariana Grande.” In other words, if “breasts” are on the block list – the list of keyword brands means you don’t want to see ads next to widely read articles about chicken prices. Now, if you’re a drinks company around the time of the Super Bowl, it’s a big missed opportunity to promote to all boneless fried chicken fans.
But there is growing evidence that these fears are truly exaggerated. A Stagwell news ad survey conducted among 50,000 Americans found that there was no difference in indicators of reputation for major brands between filming and advertising next to war and business, sports, or entertainment stories. The risk has proven to be virtually nothing, and is trivial compared to the reward.
It’s time to promote in the news. Nearly 60% of news addicts and exclusive news addicts trace the news closer than they were a year ago. About half of news addicts today consume more political, economic and international news.
News addicts were less attractive viewers to marketers.
News-linked ads drive corporate outcomes
Incorporating news into your advertising strategy has already driven results. Since launching news-centric testing in late 2023, Stagwell has provided three times the average rate of return (ROA) for AD spending.
News offers three times more Roas than other paid media channels from Assembly, a Stagwell distributor. These results reflect what I saw as Executive Vice President of Advertising at Microsoft. News sites were some of the most performant sites for technology.
Refusing to promote in news about brand safety concerns is like a grocery store that refuses to carry the New York Times or the Wall Street Journal. News is an important platform for marketers and advertisers. It is a powerful business medium that reaches highly desirable audiences.
If you are a Chief Marketing Officer, tell your team that you have decided to handle the news on a level playing field as sports and entertainment. Run your computer model and try minimal media purchases. Test and distribute the same ads and see if they work equally well.
Your performance metrics will thank you.
Markpen is chairman and CEO of Stagwell Inc. His career spans 40 years of market research, advertising, public relations and politics. A globally recognized strategist, Penn advised world leaders, including Bill Clinton and Tony Blair, founded the company and wrote two bestselling books. Gannett, the parent company of USA Today, is a partner in Stagwell’s Future of News initiative.
