[UNITED STATES] Brands are increasingly finding themselves caught in the crossfire of culture wars and controversy. This heightened sensitivity to public opinion has led to a seismic shift in advertising strategies, ultimately reshaping the media business as we know it. As brands become more risk-averse, the repercussions are felt across the entire media ecosystem, from publishers to content creators.
The Rise of Brand Safety Concerns
The concept of brand safety has evolved dramatically over the past few decades. In the 1980s, advertising was a relatively straightforward affair, with only about 20 media owners to choose from across various platforms. However, the digital revolution has exponentially expanded the advertising landscape, creating new challenges for brands.
Today, the average marketing campaign spans an astounding 44,000 websites, according to a recent study by the Association for National Advertisers. This vast expansion has made it increasingly difficult for brands to control where their ads appear, leading to a growing concern about brand safety.
The Catalyst: Trump's Election and the Rise of Activism
The 2016 election of President Donald Trump marked a turning point in the brand safety conversation. It was during this time that the concept entered mainstream marketing vernacular and became intertwined with the ongoing culture wars.
The emergence of activist groups like Sleeping Giants further amplified these concerns. Their social media campaigns targeted brands advertising on platforms they deemed problematic, pressuring companies to withdraw their support from certain outlets.
"The left recentered the ad market," said Alex Marlow, the editor in chief of Breitbart News, in a recent video interview.
This shift in the advertising landscape has had far-reaching consequences, affecting publishers across the political spectrum.
The Brand Safety Industrial Complex
As brands became increasingly anxious about potential backlash, a new industry emerged to address these concerns. The brand safety industrial complex offered sophisticated technology and strategies to help marketers avoid controversial content.
These solutions often involve keyword blocklists, designed to prevent ads from appearing alongside articles containing potentially sensitive topics. While well-intentioned, this approach has led to some unexpected consequences.
Unintended Consequences: The Paradox of News Cycles
One of the most significant ironies of the brand safety movement is its impact on news coverage. High-traffic news cycles, such as the COVID-19 pandemic or major geopolitical events, which would typically result in increased ad revenue for publishers, now often lead to revenue plunges.
This paradox occurs because many advertisers automatically block content related to these topics, regardless of the quality or importance of the reporting. The result is a challenging ad market that has left the news industry scrambling to adapt.
The Broader Impact on the Media Landscape
The effects of these brand safety measures extend far beyond individual news cycles. In 2023, the U.S. media industry saw over 21,400 job cuts, according to employment agency Challenger, Gray & Christmas. This trend highlights the significant financial pressure faced by media companies in the current climate.
Rethinking Brand Safety: A Call for Balance
Some industry insiders argue that the current approach to brand safety has become too focused on policing content adjacency. Mark Penn, CEO of Stagwell Group, suggests that advertisers should view supporting diverse perspectives as part of their civic responsibility.
"We don't want to be in the position of demonetizing one perspective or another," Penn stated. "We want advertisers to feel like it's part of their civic responsibility to be advertising behind all perspectives."
However, others believe that the industry has already passed a point of no return. Richard Raddon, CEO of Zefr, a brand suitability assessment company, argues that brands' risk profiles are unlikely to change significantly.
The Future of Media in a Divisive Landscape
As we approach another highly charged U.S. election year, marketers are becoming even more risk-averse, particularly when it comes to culture-war topics. Recent examples of this trend include major brands like Tractor Supply, John Deere, and Harley-Davidson ending their diversity, equity, and inclusion initiatives after facing activist pressure.
The infamous Bud Light controversy, which saw the brand slip from its position as America's top-selling beer to third place following a boycott, serves as a stark reminder of the potential consequences of misjudging public sentiment.
Adapting to the New Reality
In response to these challenges, publishers are diversifying their revenue streams. Strategies include:
- Focusing on subscription models
- Optioning content for film and TV adaptations
- Launching commerce and events platforms
Signing AI licensing deals
Despite these efforts, advertising remains the primary source of income for most media companies.
Potential Solutions and Industry Innovations
Some industry figures are proposing innovative solutions to address the current impasse. Ben Shapiro, cofounder and editor emeritus of The Daily Wire, has suggested a "mutual fund" approach to advertising:
"If you're an advertiser and want to advertise across a broad range of political shows that you think are not obviously violative of your core principles, then I think that also happens to be a pretty good defense" against online criticism and groups that advocate boycotts, Shapiro said.
This approach could potentially help support a diverse media landscape while providing brands with a degree of insulation from controversy.
The Changing Face of Marketing Leadership
The current climate has also had a profound impact on marketing leadership within brands. Rishad Tobaccowala, a former top Publicis Groupe executive, notes a significant shift in decision-making approaches:
"When I was working with clients and brands the people who were running marketing and advertising tended to be true decision makers and said, 'This is what we think,'" Tobaccowala said. "Now most people are really scared for their jobs, so their whole stance is, 'I'm not going to take a point of view on anything.'"
This risk-averse mentality is contributing to a more homogenized advertising landscape, potentially stifling creativity and authentic brand voices.
The fear of controversy and culture war backlash is fundamentally reshaping the media business. As brands become increasingly cautious, publishers across the political spectrum are feeling the financial squeeze. This shift is not only affecting traditional media outlets but is also influencing the broader landscape of content creation and distribution.
While solutions like diversification and innovative advertising models offer some hope, the industry faces significant challenges in balancing brand safety concerns with the need for a vibrant, diverse media ecosystem. As we move forward, finding this balance will be crucial for the health of both the media industry and public discourse as a whole.
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