ThinkNewsBrands debunks ‘brand suitability’ myth with new multi-study report.

ThinkNewsBrands has released a multi-study report to dispel misconceptions that has led some advertisers to avoid news media. The data shows:

• There is no negative impact on a range of performance and brand perception measures from advertising in ‘hard news’.
• Advertisers are sacrificing significant ROI and profit growth by avoiding news.
• The industry’s current brand suitability actions appear reserved for news, despite social media housing harmful content that really can impact brand perception.

ThinkNewsBrands has today released a multi-study report exposing the pervasive ‘brand suitability’ myth that placing ads in news has a negative impact on advertising effectiveness and brand perception.

The report also strongly argues this misconception is leading advertisers to miss out on significant ROI and profit.

CEO for ThinkNewsBrands, Vanessa Lyons, said “the thinking around brand suitability has gotten completely out of hand and isn’t based on facts.”

“Evidence strongly contradicts any suggestion that brands suffer from being placed in news content. The reality is the exact opposite.”

The report highlights May 2024 research by NAZDAQ-listed company Stagwell, involving 50,000 adults, which shows no negative impact from advertising in ‘hard news’.

The study found placing ads next to stories about conflict, inflation, politics or crime had no discernible difference on purchase intent, favourability or brand perception compared to placing ads next to sport or entertainment. Across 8 key brand metrics, including among others ‘purchase intent’, ‘trustworthiness’ and ‘right values’, the average perception score difference between ‘hard’ and ‘soft’ news was 1.6%.

The lack of discernible difference between ‘hard’ or ‘soft’ news even rang true at the demographic level. For instance, among Gen Z, the average purchase intent for brands whose ads were placed next to articles on the Middle East, Crime, Inflation and Sport were all within 4 percentage points.

The ThinkNewsBrands report also includes research by Peter Field, which shows advertisers that avoid news sacrifice market share, pricing power (quality perception) and profit growth.

According to the Field research, brands that advertised on news platforms from 2018-2022 had an 88% higher profit and market share growth compared to those that did not.

Ms Lyons said the global studies were supported by Australian data including ThinkNewsBrands own effectiveness research.

“Australian market studies show news media boosts campaign effectiveness and brand recall due its high trust, focus, and engagement attributes which is passed on to advertising.”

“The evidence is clear. Not only are some advertisers avoiding news based on a myth, they are also significantly limiting the effectiveness of their campaigns.”

Ms Lyons said the industry’s ‘brand suitability’ concerns should be targeted elsewhere noting that social media houses harmful content and misinformation that really can impact brand perception.

“The irony is that brand suitability actions seem reserved for news, despite everyone knowing that social media holds rivers of harmful content and misinformation that will actually hurt a brand.” Ms Lyons referred to a study by Integral Ad Science that showed 70% of Australians are unlikely to purchase a product or service advertised next to unsafe content.

“In the interest of their brands, the marketing and media communities must reassess their thinking and practices around brand suitability. We call on the industry to look closely at this data and invest more in news, not less,” Ms Lyons said.

Media Enquiries
Vanessa Lyons
vlyons@thinknewsbrands.com.au
0474 844 420