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Stagwell Announces Goal to Increase 2025 Ad Spend in News Media by 22% Year-Over-Year

1. Stagwell (STGW) plans a 22% increase in news ad spend for 2025. 2. 80% of EMEA CEOs see news media as vital for stakeholder engagement. 3. 86% believe news ads positively impact public and investor reputation. 4. Majority view brand safety protocols as harmful to media outlets. 5. The Future of News initiative aims to enhance news and marketing relations.

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Why Bullish?

A commitment to increase advertising spend typically signals growth intentions, which positively impacts stock prices. Historical data shows that increased ad investments correlate with business expansions and revenue growth in the advertising sector.

How important is it?

The article highlights Stagwell's strategic decisions significantly impacting brand positioning and future performance, making it essential for investors. Increased ad spend and positive reception by business leaders indicate a strong potential for revenue growth.

Why Long Term?

This strategic move may take time to reflect in financials, as brand perception and relationships take time to evolve. Companies often see long-term benefits from sustained ad investments in trusted media.

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Announcement timed to today's second annual Future of News UK summit and the release of research fielded among 500+ EMEA CEOs and Board Directors89% of EMEA CEOs and Board Directors follow the news closely, reading an average of five articles per day, /PRNewswire/ -- Today, Stagwell (NASDAQ: STGW) announced its commitment to increase 2025 ad spend in news by 22% year-over-year. This announcement is timed to Stagwell's second annual Future of News UK summit and the release of new data revealing EMEA CEOs and Board Directors view news as a powerful medium to reach key stakeholders. Future of News U.K. Summit "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 UK, France, Germany and the Gulf Cooperation Council (GCC), underscores business leaders overwhelmingly value the importance of news media as a powerful advertising tool. 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% of UK CEOs and Board Directors think news media is critical to democracy, as do 82% 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 in Germany think brand safety protocols should be used across all types/sources of news media, but the sentiment is much higher in France (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 London. Industry leaders from CNN International, Newsquest, The Sunday Times, and more will take the stage to discuss how journalists are breaking down barriers, holding truth to power, and shedding light on the issues that matter most. For more information about Stagwell's initiative and to get involved, visit stagwellglobal.com/future-of-news/.About StagwellStagwell 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[email protected]SOURCE Stagwell Inc. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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