Brand advertising on news sites is essential, not risky | Opinion

Understanding the News-Heavy Audience

A significant portion of the American population—approximately one-quarter—checks the news five or more times a day. These individuals are often information seekers, with higher levels of education and income. In today’s fast-paced political and economic environment, where change is constant, many people turn to their phones for news updates. For marketers, this presents a compelling opportunity.

However, despite the potential, many brands avoid digital news platforms due to concerns about "brand safety." This fear, while understandable, may be misplaced. By steering clear of news sites, brands risk missing out on a valuable audience that could significantly impact their business.

The Value of News Junkies

News junkies represent a substantial segment of the population. Around 80.4 million U.S. adults follow the news very closely. These individuals are not only more informed but also more likely to engage with brands, trust them, and recommend them to others. According to Stagwell's Advertising Impact Study, the average purchase intent among news junkies is 66%, which is 16 percentage points higher than the general population.

Moreover, the majority of world leaders, including 90% of CEOs and board members, are also news junkies. This highlights the importance of reaching this demographic. Additionally, there are exclusive news junkies—around 37 million U.S. adults (14% of the population)—who focus solely on news without engaging in sports or entertainment. These individuals are growing in number, with over 7 million new converts in just a year.

Addressing Brand Safety Concerns

Despite the benefits, some brands remain hesitant to advertise on news platforms due to fears about brand safety. This concern has led to the creation of blocklists and subjective guidelines that restrict ad placements based on keywords. For instance, an article about chicken prices might be excluded from advertising if the word "breasts" appears, even though it is unrelated to the content.

However, research indicates that these fears are largely unfounded. A study by Stagwell found no difference in key brand reputational metrics between ads placed next to news about shootings and those next to business, sports, or entertainment stories. The risks involved are minimal compared to the potential rewards.

The Growing Importance of News in Advertising

The time to embrace news as an advertising platform is now. Nearly 60% of news junkies and exclusive news junkies follow the news more closely than they did a year ago. Many are consuming more political, economic, and international news, making them an attractive audience for marketers.

Incorporating news into advertising strategies has already proven effective. Stagwell's 2024 campaigns delivered three times the average return on ad spending (ROAS) since beginning news-focused testing in late 2023. News platforms offer higher ROAS than other paid media channels, demonstrating their effectiveness.

Strategic Recommendations for Marketers

For chief marketing officers, the decision to include news in advertising strategies should be made with confidence. Treating news on par with sports and entertainment can lead to better performance metrics. Testing a minimum media buy and comparing results can provide valuable insights.

By leveraging the power of news, brands can reach highly desirable audiences and drive real business results. Ignoring this opportunity is akin to a grocery store refusing to carry major newspapers. News remains a critical platform for marketers, offering a powerful medium to connect with informed and engaged consumers.