Stagwell Announces Goal to Increase 2025 Ad Spend in News Media by 22% Year-Over-Year
Rhea-AI Summary
Stagwell (NASDAQ: STGW) has announced plans to increase its news media ad spend by 22% year-over-year in 2025. The announcement coincides with the company's second annual Future of News UK summit and new research findings from over 500 EMEA CEOs and Board Directors.
The research, conducted by Stagwell's HarrisX, reveals that 89% of EMEA executives closely follow news, reading an average of five articles daily. Key findings show that 80% view news media as a powerful stakeholder communication tool, and 85% consider it a good investment. Additionally, 86% believe news media advertising positively impacts reputation among both the general public and financial investors.
The study also highlighted concerns about brand safety protocols, with 71% of executives believing these measures are overapplied, potentially harming both media outlets and advertisers. Regional variations show particularly strong support for news media advertising in the GCC, where 92% of leaders view it as a good investment.
Positive
- Committed 22% increase in news media ad spend for 2025
- Strong market validation with 85% of EMEA executives considering news media a good investment
- High engagement potential with 89% of EMEA executives following news closely
Negative
- Concerns over overapplied brand safety protocols potentially limiting advertising effectiveness
Insights
Stagwell's commitment to increase news media ad spend by 22% year-over-year in 2025 represents a significant strategic investment decision that signals confidence in their media allocation approach. This isn't merely a CSR initiative - it's a data-driven business decision backed by their proprietary research showing 85% of EMEA executives believe news media advertising is a good investment.
What makes this particularly interesting is Stagwell's contrarian stance on brand safety protocols. Their research reveals 71% of business leaders believe these protocols are overapplied. This suggests Stagwell has identified a market inefficiency - potentially allowing them to reach valuable executive audiences (who read 5 news articles daily according to their research) through channels competitors might be underutilizing.
For investors, this represents Stagwell leveraging their unique position as both a marketing services provider and research organization. By collecting proprietary data on executive media consumption habits, they're making informed decisions about their own media investments while simultaneously establishing thought leadership that benefits their client services business.
The strategic focus on news media could also strengthen Stagwell's positioning with premium clients targeting executive decision-makers, particularly in financial services and B2B sectors where reaching this high-value audience directly impacts campaign effectiveness.
Stagwell's announcement serves dual strategic purposes that enhance both their market positioning and client offering. By committing to a 22% increase in news media spend, they're not just allocating marketing dollars differently - they're making a statement about where they see value in the media ecosystem that competitors might be missing.
Their research finding that 86% of executives believe news media has the strongest reputational impact among both general public and financial investors represents valuable proprietary intelligence. This data point alone justifies their increased investment from an effectiveness standpoint.
What's particularly shrewd is how Stagwell is addressing the industry's brand safety paradox. Their finding that 71% of executives believe safety protocols are overapplied suggests many advertisers are likely overcompensating in their avoidance of news content. By leaning into news while others pull back, Stagwell potentially gains access to less competitive inventory with engaged, high-value audiences.
The timing alongside their Future of News summit demonstrates sophisticated integrated marketing - using their own spending commitment to validate the thought leadership they're sharing with clients. This creates a virtuous cycle where their research informs their strategy, which in turn enhances their credibility as advisors on media investment.
For a marketing services organization, this approach differentiates Stagwell as both practitioner and expert in an area where many companies struggle with decision-making.
Announcement timed to today's second annual Future of News
"At Stagwell, we believe supporting trusted journalism isn't just good for society — it's smart business," said Mark Penn, Chairman and CEO of Stagwell. "The data continues to back that up, which is why we're doubling down on our commitment with a significant increase in news ad spend for 2025."
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 conducted by Stagwell's research consultancy HarrisX and fielded among more than 500 EMEA CEOs and Board Directors across the
EMEA CEOs and Board Directors Consider Media to be Vital, Share Global Trust Concerns
80% think news media gives companies a powerful medium to reach their stakeholders.73% ofUK CEOs and Board Directors think news media is critical to democracy, as do82% of GCC CEOs and Board Directors.
EMEA CEOs and Board Directors Want Their Companies to Advertise More on News Media
- Overall,
85% believe advertising on news media is a good investment. - In the GCC,
92% say advertising on news media is a good investment. - EMEA CEOs and Board Directors believe advertising on news media will have the greatest positive reputational impact among the general public (
86% ) and financial investors (86% ).
Brand Safety is an Industry Standard but its Application is Too Broad
- While only
9% of EMEA CEOs and Board Directors say safety protocols should not be used at all, a majority (71% ) believe brand safety protocols are overapplied to the point of hurting media outlets and advertisers. 26% of CEOs and Board Directors inGermany think brand safety protocols should be used across all types/sources of news media, but the sentiment is much higher inFrance (47% ) and the GCC (51% ).
"This study illustrates that despite the noise around brand safety, AI and politics, EMEA business leaders recognize the significant impact news media has on effective advertising," said James Townsend, Stagwell EMEA CEO.
Tonight, Stagwell will host panel discussions at its EMEA headquarters in
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 40+ countries are unified under a single purpose: to drive effectiveness and improve business results for our clients. Join us at StagwellGlobal.com.
Contact:
Madi Wick
PR@StagwellGlobal.com
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SOURCE Stagwell Inc.
FAQ
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