
Pew research reports that around 86% of Americans consume news on smart devices like phones and tablets at least some of the time, while 57% do so “often.” Though television, radio, and print media still have their audiences, they are significantly outpaced by digital platforms, which are typically ad-supported. Simply put, the advertising audience for news is huge.
Many advertisers are concerned about placing ads next to news reports, fearing that contentious topics or other bad news will cast a poor light on any ads surrounding the content. As always, we should look to the data for the truth: context does matter, but advertisers have nothing to fear about placing ads on news sites.
Contextual v.s. Targeted Ads
When an ad is placed in an environment where it fits in with the content – i.e. golf club ads are placed on a sporting website – then the ad tends to blend into the background. Consumers are less likely to take notice because they expect that kind of advertising to be present.
A golf club ad on a news site, however, will stand out much more to the average customer. Because the ad contrasts the content of the page, users are much more likely to take notice and indulge their curiosity, especially if they’re in the market for golf clubs.
This is the power of targeted advertising; it allows advertisers to place ads for their consumers in ways and places that make impressions and engagements much more likely. Contextual advertising has its place, but targeted advertising is much more effective because it tailors the ad to the user rather than the website. Genius Monkey has seen targeted placements produce an average of 3 times higher conversion rates over contextual placements.
As such, the Genius Monkey platform places ads on news websites all the time because our tools are designed to follow customers wherever they go. Genius Monkey’s data isn’t an outlier here; many studies have researched the interaction with news and advertisements and drawn similar conclusions. Let’s look at the most-cited reports:
The Big One: Stagwell’s 2024 Report
A quick search online will bombard your results page with articles proclaiming NO: serious news topics do not hurt the performance of adjacent advertisements. Most of these references stem from one major study: the Stagwell report.
In early 2024, Stagwell conducted a massive survey with around 50,000 participants: ads from 10 different brands were placed alongside a mix of controversial and “brand-safe” news topics across Stagwell’s publishing partners. Participants were asked questions to gauge the reputation of the brands in question, as well as the purchase intent of the participant themselves.
Stagwell reported that participants exhibited similar levels of purchase intent with all of the news content, controversial or otherwise. Slight differences were chalked up to the inherent error of people and studies in general, and the conclusion was reached that ads perform the same regardless of the news topic they’re placed next to.
Stagwell’s report has some interesting omissions; we don’t know which brands were tested nor which news sites they were published on. While not the air-tight definitive statement many consider it to be, Stagwell clearly demonstrated that there’s something to be learned here about news advertising.
What Others Have to Say on the Topic
While the most-cited, Stagwell’s report is not the only research on news advertising.
IAB’s 2020 Report
A survey similar to Stagwell – though at a much smaller scale – that reached similar conclusions. IAB suggests that when news advertising is done well, it not only doesn’t suffer from perception disadvantages but can actually build a brand’s reputation.
IAB’s description of “well done” news advertising consists of:
- Advertising on generally well-reputed sites
- Targeting your advertisements toward regular viewers of the site
Disney/MAGNA’s 2022 Study
MAGNA found that news consumers are actively seeking information—making them more receptive to new brands. Key takeaways:
- The news site has a greater impact than the story itself
- The genre of news (entertainment, sports, politics, breaking news, etc.) had little-to-no effect on brand favorability and research intent
- Ad types can perform better paired with certain news stories; simple product ads worked better with breaking or “hard” news, while a storytelling approach worked better in race/culture news.
IAS 2024 Research
Published a few months before Stagwell’s survey, IAS reported that news sites are ranked second in customer advertisement receptiveness, behind only shopping websites. Around three-quarters of consumers reported that they want brands to support responsible journalism, which makes them more likely to notice and approve of brands that appear on their news site of choice.
The Importance of Fully-Managed Campaigns
The research shows that news advertising is not only safe, but can potentially boost visibility and engagement. Placing the right ad at the right time in the right place allows Genius Monkey users to maximize conversions, and finding that sweet spot comes down to balancing AI systems with a team of human programmatic experts.
Modern adtech lets companies take the DIY approach to targeted advertising, but such methods can easily lead to bad placements and missed opportunities. AI and automation are great technologies and important parts of the programmatic process, but they cannot understand the context and optimize your campaign like a team of experienced advertisers can.
The Genius Monkey platform is built on powerful tech overseen by real humans, which enables users to increase their conversions while lowering their costs. If you’re ready to evolve your marketing strategy to the next level, get in touch with the Genius Monkeys today!