News · · 5 min read

News: Brand's $4 Billion Blindspot

Despite the myths, news environments prove to be high-return and brand-safe. With performance upwards of 8.5x higher, avoiding news media might be the most misguided marketing myth yet.

News: Brand's $4 Billion Blindspot
There are billions of dollars of advertiser brand growth opportunities sitting in newsrooms around the world. Value that is just sitting there waiting for smart marketers to come scoop up.

I'm a recovering news publisher.

I started my career at CBS Radio, managing digital publishing for many of the company's top local news properties in New York City. A month ago today, one of them folded. At one time, WCBS-AM was the most successful radio station in the country. The station was the absolute top of the mountain for anyone working in audio news.

Now, it is gone.

I left CBS 14 years ago, but it was by far the most personally rewarding and exciting part of my career. The economic well-being of the news business has been in the back of my mind ever since.

For years, advertisers have dismissed news content, avoiding it out of fear that placing ads next to sensitive topics could damage their brands. But it’s time to rethink this strategy.

It is a huge problem. Why are we in this situation?

According to a study led by Prohaska Consulting:

"Two-thirds of respondents agree that consumers of high-quality news journalism are a desirable audience segment. Ad tech professionals were less likely to agree with this statement, a finding most likely attributed to ad tech companies more frequently looking at news content from a blocking or filtering lens vs. a holistic one."

Christian Juhl from GroupM testified about the state of advertising on news sites. He pointed out the low percentage of ad spend dedicated to online news platforms and the industry’s over-cautious approach towards news content.

“Only 1.28% of our clients’ ad spending is on online news sites,” said Juhl, Global CEO of GroupM.

There are now years worth of research providing compelling evidence that advertising alongside news content, even hard news, is not only safe but can also boost campaign performance.

Publishers bear some responsibility for the current situation, as they have not sufficiently tagged and contextualized their content to give advertisers confidence in page-level specifics.

Additionally, monetization platforms lack robust tools to convey this contextual data, leaving brands uncertain. This gap has fueled the rise of third-party contextual-tech providers who fill in these data shortcomings, stepping into a role that publishers could arguably take on themselves.

The Myth of "Unsafe" News

It’s a far too common belief that advertising near controversial news stories could tarnish a brand’s image. But a study by Stagwell debunks this notion, revealing that ads adjacent to "not brand safe" stories performed almost as well as those next to "safe" content—67.2% vs. 68.3% effectiveness.

In other words, the impact of news adjacency on brand perception is, well, negligible.

And Gen Z, often seen as the most discerning demographic, doesn’t seem to care either.

Their purchase intent remained consistent whether ads were shown next to stories about the Middle East (65%) or sports (69%).

So, maybe it’s time to stop unilaterally striking news from our media plans?

And here's a fun fact: quality news sites produce less than half the carbon emissions of throw-away content like MFA properties.

CO2PM (Cost of Carbon per Mille) on trusted news websites is 52% lower than on MFA websites, highlighting the environmental benefits of premium ad placements.

More Bang for Your Buck

If the argument that news is brand-safe doesn’t convince you, the performance numbers should.

As far back as 2021, we knew that ads in news media environments are 8.5 times more effective than those in social channels, with 34% unprompted recall compared to just 4% for run-of-internet ads.

Print and digital news combined delivered 3.5 times greater brand lift than standard online ads.

And it’s not just awareness and recall; news outlets proved 10% more effective for short-term ROI compared to social channels. It turns out that audiences trust the content they see in news settings, making them more receptive to the advertising there.

According to Disney and Magna, there's a plethora of incremental gains to be had, regardless of news genre.

No News is Bad Newsresearch from Disney and Magna. (2022)

Trust and Engagement: News Media's Secret Sauce

Speaking of trust, 80% of consumers believe the content they see in news brands, including government-related stories. That’s a level of trust most platforms can only dream of. The same study found that average ad dwell time is 1.4 times higher in a hard news environment, while engagement is 50% higher on premium editorial sites compared to general browsing.

In other words, news readers are not just skimming—they’re soaking it all in, ads included.

News also outperforms social media, including print. That's right. PRINT.

From: Think News Brands. The Benchmark Series: Comparing News with Social (2021).

Yes, the audience for print is evaporating, but the effectiveness of the format is undeniable. That rubs off on the digital versions of print publications too.

Why the Long Game Matters

If you’re still on the fence, consider this: campaigns using news brands are 74% more likely to drive market share growth and 58% more likely to deliver profit. Advertisers are missing out on a staggering $3.9 (£3) billion in campaign profit by underinvesting in news brands.

Avoiding news platforms isn’t just a cautious move—it’s a costly mistake. News content provides not only a safe environment but also a high-quality one that enhances campaign effectiveness over the long term.

Studies collectively suggest that while advertising in news media can be more costly during peak times, the engaged and high-value audiences it delivers make it a strategic investment for many brands.

In a longer-term study by Peter Field and Newsworks, the increase in brand trust delivered by news content is strongly linked to brand profit growth.

“The evidence is clear, news brands – and increasingly across their digital platforms – deliver incredibly strong business effects for brands," said Field. "They are able to do this because of their strong impacts on brand trust and quality perceptions – two brand effects that are now most strongly linked to profit growth."

Of course, context is crucial. While most news content is safe, brands still need to be cautious about misinformation.

Fake news drives negative results.

A study by DoubleVerify reveals that consumers have strong negative reactions towards brands that appear alongside fake news or objectionable content. 2 out of 3 consumers are less likely to buy from brands that advertise on fake news websites.

What’s Next?

Here’s what smart advertisers should consider:

  1. Quality Over Quantity: Don’t avoid news altogether. Instead, focus on reputable sources that align with your brand values.
  2. Context is King: While most hard news is safe, be mindful of the nuances. Sensitive topics still require a thoughtful approach.
  3. Leverage Multi-Channel Strategies: A blend of offline and digital news advertising can amplify your campaign’s reach and impact.
  4. Support Journalism: Advertising in news media not only reaches engaged audiences but also supports quality journalism—a cause increasingly important to consumers.
  5. Tap Into Valuable Demographics: News readers are often high-earners and college-educated—prime targets for many brands.

Advertising in quality news environments is not only safe but can also drive superior campaign performance across a range of metrics. So, it’s time to ditch the outdated playbook and embrace the unique benefits of these highly engaged, trusted environments.

I've had versions of this post in "draft" for the better part of four months, unable to think of how to make the points work together. Special thanks to Ruben Schreurs for the inspiration to get it done, and Roxanne Geyer for helping with edits.

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