Advertisers are increasingly steering clear of news environments over brand safety concerns, even as overall digital advertising spending continues to rise.
Darren Woolley from TrinityP3 says the shift is directing more advertising dollars towards major social media and digital platforms, while traditional and local news organisations struggle to capture their share of growing ad budgets.
The challenge is particularly acute for news media, where core reporting can often involve uncomfortable, controversial or political issues.
For advertisers, the fear of their brands appearing alongside contentious content can make social platforms appear easier to manage, despite their own content and moderation challenges.
Woolley says the recent bloodstained shirt advertising incident highlights the difficult balance advertisers face between protecting their brands and supporting credible journalism.
The issue comes as the Australian Government’s News Bargaining Incentive seeks to support the sustainability of news media, while media agencies have rejected calls for a mandate requiring advertisers to allocate spending to local publishers.
Meanwhile, legal action in the United States is beginning to put greater pressure on major digital platforms over content and advertising issues, adding to the debate about who should bear responsibility for maintaining a sustainable news ecosystem.
With advertising dollars continuing to move towards digital platforms, the future of local journalism could increasingly depend on whether advertisers, agencies, governments and technology companies are willing to play a greater role in supporting the media organisations producing the news.
