Marketers may be missing out by worrying too much about brand safety, per new research from Stagwell.
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A key takeaway from the report is the relatively small impact on purchase intent when comparing ads placed near positive, entertainment-oriented stories to those near more negative news stories, such as articles about inflation.
For example, among Gen Z consumers, the average purchase intent for ads placed next to stories about the Middle East conflict was 65%, only four points less than when placement is next to stories about sports. The purchase intent for ads near inflation-related stories was 66%, and for those near crime stories, it was 67%.
“Simply put, Americans can tell the difference between the content and the ad. And the complexity of the content doesn’t necessarily rub off on the brand metrics around the app,” said Nesho. “And that’s an important part of the findings, especially as we’re addressing questions around brand safety.”
It is important to note that purchase intent related to placement near news articles could depend on many factors, such as income. When looking at higher-income consumers, ads placed next to high-quality political news stories had a purchase intent of 72%, just two points less than advertisements placed next to entertainment stories. For mothers, the purchase intent for ads placed next to neutral stories and more negative stories was 70% in both cases.
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Stagwell’s report specifically examined high-quality publishers. Ultimately, this hits at the core of one of the issues surrounding brand safety today—not knowing where branded content is showing up, and not all news articles are created equal. When advertising with large tech firms such as Google or Meta, it can be difficult to keep track of where branded material appears. Going straight to the source, the publishers themselves may prove more effective when reaching the desired audience, per the research.
“For advertisers, reaching this massive audience that 25% of Americans who are self-professed or self-identified, news junkies, these are people that follow the news very closely daily. And, frankly, a good portion of these people, you can’t capture through other channels, you can’t capture them in entertainment channels, and you can’t capture them in sports channels,” said Nesho. “And there’s an immense opportunity here for advertisers to go after this audience rather than leave this audience behind.”