CEOs and Board Directors View News Media as Powerful Advertising Tool to Influence Key Stakeholders and Say Brand Safety is Overapplied, Reveals Stagwell Future of News (STGW) Study

Rhea-AI Summary

Stagwell (NASDAQ: STGW) released a comprehensive survey of over 1,000 CEOs and Board Directors across 14 countries, revealing significant insights about news media's role in advertising and brand safety protocols. The study, conducted by HarrisX, shows that 90% of executives follow news closely, with 86% supporting advertising in news media.

Key findings indicate that 83% of leaders believe news media raises awareness of critical issues, while 81% say it can positively influence society. However, 57% think brand safety protocols are mistakenly applied across all news content, with 69% stating these protocols are overapplied, potentially harming both media outlets and advertisers.

The study also reveals tempered economic expectations for 2025, with only 42% expecting global economic improvement, 36% anticipating inflation easing, and 33% foreseeing improvement in geopolitical conflicts.

Positive

• 86% of executives support advertising in news media
• 75% of companies want to increase their news media advertising
• 90% of CEOs and Board Directors actively engage with news content

Negative

• Only 42% expect economic improvement in 2025
• Just 36% believe inflation will ease
• Mere 33% expect improvement in geopolitical conflicts

News Market Reaction

+3.32%

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+3.32% News Effect

On the day this news was published, STGW gained 3.32%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Fewer than half expect the global economy, inflation or geopolitical conflicts to improve in 2025

Stagwell Chairman and CEO Mark Penn to reveal additional results of the study on stage at the World Economic Forum 2025

NEW YORK, Jan. 17, 2025 /PRNewswire/ -- Before leaders gather at the World Economic Forum (WEF) in Davos next week, Stagwell (NASDAQ: STGW) today unveiled the results of a survey of CEOs and Board Directors regarding their outlook on critical topics shaping the future including economic conditions, artificial intelligence (AI), and the evolving relationship between CEOs and Board Directors and the news media.

At Stagwell, we believe a thriving news industry is not only the foundation of a healthy democracy, but also a critical platform for marketers and advertisers. However, recent discourse around brand safety – the effort of protecting a brand's reputation by controlling advertisement proximity to certain content – has disproportionately hurt the news industry, as advertisers shy away from news due to misconceptions and an abundance of caution. Stagwell launched the Future of News Initiative with the goal of reinvigorating the relationship between news and marketing through research, events and informed discussion around brand safety.

This latest study, fielded among more than 1,000 CEOs and Board Directors across 14 countries, and conducted by Stagwell's HarrisX research consultancy, underscores that business leaders overwhelmingly value the importance of news media as a powerful advertising tool.

CEOs and Board Directors Are Strong Proponents of News Media

• 90% of CEOs and Board Directors follow the news closely, reading an average of six articles per day.
• A strong majority say 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.
• 75% say their companies should advertise in news more, compared to just 7% who want to scale back their advertisement in news.

CEOs and Board Directors Think Brand Safety Protocols Are Overapplied

• 84% of CEOs and Board Directors 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.
• 69% say brand safety protocols are overapplied to the point of hurting media outlets and advertisers.
• 75% of executives of large companies in particular believe brand safety has been overapplied.

Tempered Expectations for 2025

• 42% of CEOs and Board Directors expect the global economy to improve in 2025, while 35% predict stagnation and 23% anticipate a decline.
• 36% believe inflation will ease, but 35% foresee no change and 29% expect worsening.
• Only 33% foresee improvement of geopolitical and military conflicts this year, with 41% expecting no change and 26% predicting escalation.

Throughout WEF next week, Stagwell will host programming laddering back to its Future of News initiative including a News x Democracy panel with AG Sulzberger, Chairman and Publisher at The New York Times, and Mark Penn, Chairman and CEO of Stagwell. Stagwell will also host a Cocktails and Conversation event in partnership with The Washington Post to celebrate a new year of collaboration and innovation in shaping the future of news.

Later this month, Stagwell will also host an inaugural Publisher Showcase with its coalition of publisher partners at Stagwell's headquarters in One World Trade Center. For more information about the initiative and to get involved, visit https://www.stagwellglobal.com/future-of-news/.

Methodology
This study was conducted with 1,028 CEOs and Board Directors in the United States, Canada, United Kingdom, Germany, France, Brazil, Saudi Arabia, United Arab Emirates, Bahrain, Indonesia, Singapore, Malaysia, Vietnam and Thailand. The executives interviewed for the study lead publicly traded, privately-owned companies and public sector organizations across industries. The online interviews were conducted by HarrisX from December 30, 2024 to January 14, 2025.

About Stagwell
Stagwell is the challenger holding company built to transform marketing. We deliver scaled creative performance for the world's most ambitious brands, connecting culture-moving creativity with leading-edge technology to harmonize the art and science of marketing. Led by entrepreneurs, our specialists in 35+ countries are unified under a single purpose: to drive effectiveness and improve business results for our clients. Join us at www.stagwellglobal.com.    

About HarrisX
HarrisX is a leading public opinion research, data analytics, and strategy consulting company with offices in the United States, United Kingdom, Canada and Singapore. HarrisX conducts multi-method research in over 50 countries around the world on behalf of Fortune 100 companies and philanthropic organizations, public policy institutions, global leaders, media and NGOs. HarrisX is a proud member of Stagwell Global (STGW). Learn more at www.harrisx.com.

Contact:
Kara Gelber
PR@stagwellglobal.com 

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SOURCE Stagwell Inc.

FAQ

What percentage of executives support advertising in news media according to STGW's study?

According to Stagwell's study, 86% of CEOs and Board Directors say companies should advertise on news media, considering it a sound investment to reach and influence stakeholders.

How do CEOs view brand safety protocols in news media according to STGW's 2025 study?

57% of CEOs think it's a mistake to apply brand safety across all news outlets, and 69% believe brand safety protocols are overapplied, potentially harming both media outlets and advertisers.

What are the economic expectations for 2025 according to STGW's CEO survey?

Only 42% expect the global economy to improve, 35% predict stagnation, and 23% anticipate a decline in 2025.

How many CEOs and Board Directors participated in STGW's Future of News study?

The study included 1,028 CEOs and Board Directors across 14 countries, conducted from December 30, 2024 to January 14, 2025.