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IAB Report: Brand Advertising On News Podcasts The ‘Smart Thing to Do.’

Brand fears about advertising on trusted news outlets in times of crisis are unfounded, and advertising within news is not only brand safe, but also brand building. That is according to a report by the Interactive Advertising Bureau (IAB) that busts some of the myths that prevent brands from relying on news outlets as viable advertising vehicles in times of crisis.

The fear that it’s not safe for brands to advertise within news is not based in reality. Advertising within the news is more than safe; it can increase the return on investment for those ads. This phenomenon is called the news trust halo, according to the newly released IAB research report, “The News Trust Halo: How Advertising in News Benefits Brands.”

“News consumers are more likely to take action and engage with brands advertising within their preferred news sources,” said David Cohen, chief executive officer of IAB. “It’s not just the right thing to do, it’s the smart thing to do.”

The report found that six percent of those surveyed are already turning to podcast for coverage of “serious” or breaking news. That is not far behind radio’s 10%. Here is what else the report found –

  • Consumers seek professionally produced news content from sources they prefer. 

  • Consumer trust in brands advertising within news increases because of associations with preferred news sources.

  • In addition to increased trust, brands that advertise within news are more likely to see increases in consumer perception of other positive attributes.

  • Consumers are more likely to consider making a purchase after being exposed to a brand’s ads within their preferred news sources.

  • Consumers get their news from multiple sources. On average, the report said, consumers use four different news sources each week. About 10% of consumers choose radio as a source for serious and/or breaking news.

  • Both news consumers and executives rely on digital news sources more than traditional ones. While most executives prefer digital sources, those between the ages of 45-54 use digital and traditional sources — such as TV, newspaper and radio — equally. Executives in the 55-64 age group rely more on traditional sources.

  • When brands advertise within professionally produced news media, consumers — regardless of age, gender or political leanings — find these brands more trustworthy, more relevant and more likely to be purchased.

  • The report found that 84% of news consumers feel that advertising within the news either increases brand trust or maintains it. By comparison, only 16% find brands that advertise within the news are less trustworthy.

  • While news consumers believe “fake news” and misinformation circulates, they think their preferred news outlets are not reporting fake news.

  • Advertising that is news adjacent provides significant benefits for brands: 47% of news consumers find the brands to be more customer-focused and 45% find these advertisers to be more innovative. Brands also find that this leads consumers to visit their websites, buy the brand, and recommend the brand to others.

Download the IAB’s full report HERE.

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