CEOs: News Media Advertising Still Powerful, Brand Safety Protocols Overapplied

CEOs and Board Directors overwhelmingly value the importance of news media as a powerful advertising tool, according to a recent study by Stagwell (NASDAQ: STGW). The study, conducted among over 1,000 CEOs and Board Directors across 14 countries, revealed that 90% of executives follow news closely, reading an average of six articles per day. A strong majority believes that news media raises awareness of critical issues (83%), can positively influence society (81%), and is critical to democracy (79%).

The executives view advertising in news media as a strategic tool, with 86% saying companies should advertise on news media and 87% calling it a sound investment to reach and influence stakeholders. However, 75% of executives want to increase their company's advertisement in news, compared to just 7% who want to scale back, suggesting a positive outlook on news media advertising.

Despite the positive perception of news media advertising, 69% of CEOs and Board Directors believe that brand safety protocols are overapplied, potentially harming both media outlets and advertisers. The study found that 84% of executives say their organizations apply brand safety protocols, but 57% think it is a mistake to apply brand safety across all news outlets and types of news content. A significant 75% of executives of large companies in particular believe brand safety has been overapplied.

The tempered economic expectations for 2025 could impact advertising budgets and strategies, particularly in relation to news media. With only 42% of CEOs and Board Directors expecting the global economy to improve, 36% anticipating inflation to ease, and 33% foreseeing improvement in geopolitical conflicts, businesses may adopt more cautious approaches to advertising spending. However, the strong support for news media advertising suggests that news outlets can still present attractive opportunities for businesses looking to reach key stakeholders and influence public opinion.

In conclusion, CEOs and Board Directors view news media as a powerful advertising tool to influence key stakeholders, but they also believe that brand safety protocols are overapplied. As businesses navigate the uncertain economic climate, news media outlets can position themselves as an attractive option for businesses seeking to maximize their advertising investments by demonstrating their value and adapting their offerings to cater to changing preferences.