Fake News, Real Consequences: Impact on Consumers, Publishers and Advertisers – PDRF 2017 Madrid

AGENDA
 INTRODUCTION
 OBJECTIVES - 360O VIEW
 Consumer
 Advertisers
 Industry
 WHERE DO WE GO FROM HERE?

1
WHAT IS FAKE NEWS?
yellow journalism or propaganda….
…. a type of

deliberate misinformation or hoaxes spread via media…

entirely fabricated news stories to

…employs eye-catching headlines or

increase readership, online sharing and Internet click revenue.

…written and published with the intent to mislead in order to gain financially or politically, often with
sensationalist, exaggerated, or patently false headlines that grab attention

…undermines serious media coverage and makes it more difficult for

journalists to cover significant news stories.

2
 Fake News is not a new ideaTHE GREAT MOON HOAX
How do
consumers
define fake
news?
“News with
misleading
headlines”

“Stories that
purposely spread
misinformation”
3
 1. The rise of social media and global
KEY connections result in spreading of
THEMES fake news

2. Implications and connection of fake

news to advertising

4
 Consumer

360 O Perceptions

view of the How

impact of Advertising information is

found?
fake news

Industry

5
CONSUMER IMPACT

6
 Fake News, Real Consequences: Impact on Consumers, Publishers and Advertisers – PDRF 2017 Madrid

CONSUMER IMPACT

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 Fake News, Real Consequences: Impact on Consumers, Publishers and Advertisers – PDRF 2017 Madrid

Social media is most responsible for the spread of fake news

CONSUMER IMPACT
…only 6% of respondent’s blame mainstream print news of spreading fake news

27%

Q. In your opinion, which of the following is most responsible for

spreading "fake news"? Please select one response.
Question Type: Single Choice | Total Respondents: 557

12%
10% 10%
8% 8%
6% 6% 6%
4% 3%

Social media Mainstream TV Conservative Politicians Satire news (e.g. Liberal media Mainstream print Internet news Lifestyle websites Late night talk None of the
(e.g. Facebook, news (e.g. media (e.g. The Onion, The (e.g. the Atlantic, news (e.g. New aggregator (e.g. (e.g. Refinery29, shows (e.g. The above
Twitter) MSNBC, CNN, Breitbart) Daily Show) HuffPost) York Times, Wall Google, Yahoo) BuzzFeed, Tonight Show,
Fox) Street Journal) PopSugar) Bill Maher)

Source: Fake News – Omnicom Media Group 8

 Consumers’ trust in mainstream news is strong – but news habits have
changed significantly

Millennials 36%
I only read
trust news news from
sites/sources
less than I trust

older cohorts 39%

I get my
news from
more than
one source
now

Source: Fake News – Omnicom Media Group

9
 Fake News, Real Consequences: Impact on Consumers, Publishers and Advertisers – PDRF 2017 Madrid

Brands risk appearing adjacent to …. And negatively impacted.

CONSUMER IMPACT
undesirable content…
I would have a negative impression of that
brand
How often do you see ads around…
75%
48% 54% >75%
I would not consider purchasing that brand

74%
Hateful/ Fake News state that credible, brand-
safe environments are
Offensive/ worth paying a premium
for.
Derogatory
content

I would not recommend that brand to

others

76%
Source: OMG, National Online Survey June 2017l; Top 2 box agreement 10
 Fake News, Real Consequences: Impact on Consumers, Publishers and Advertisers – PDRF 2017 Madrid

Most consumers would prefer a non-

governmental organization to flag fake news
CONSUMER IMPACT

Other, please specify, 7%

An independent
organization made up of
entities
Top 2 Box in media (e.g.,

How do we journalists), 12% An independent organization

combat made up of both academics and

entities in media, 33%
fake news?
An independent
organization made up
of academics / entities The United States Government
not in media, 23% (e.g. something like the
F.C.C.), 25%

Source: Fake News – Omnicom Media Group

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INDUSTRY IMPACT

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 Fake News, Real Consequences: Impact on Consumers, Publishers and Advertisers – PDRF 2017 Madrid

Value of brand safe environments is increasing

INDUSTRY IMPACT

81% 72% 66% 64%

Ensuring a brand using the most Buying directly Can’t ensure brand
safe environment reputable sites is from premium safety when buying
is essential more important publishers is the programmatically
than ever best option

Source: Meredith Online Survey/Ad Perceptions March 2017 13

 Fake News, Real Consequences: Impact on Consumers, Publishers and Advertisers – PDRF 2017 Madrid

INDUSTRY IMPACT

Gaining control
over digital
budgets is
driving
advertisers to
think
differently…..and
more cautiously

Source: NY Times (3/2017) 14

 Fake News, Real Consequences: Impact on Consumers, Publishers and Advertisers – PDRF 2017 Madrid

INDUSTRY IMPACT

“I had a theory…given the severe HE

WAS
distrust of the media among
Trump supporters…any-
thing that parroted Trump’s
talking points people would
click”
RIGHT.
His post was shared
by 6 million + people

Source: NY Times (3/2017) 15

 Fake News, Real Consequences: Impact on Consumers, Publishers and Advertisers – PDRF 2017 Madrid

When Trust is compromised, advertisers act with their wallets

INDUSTRY IMPACT

Change in Spending with Ad Of Those Spending Less, Was the

Networks vs. Year Ago Decision Influenced by a Desire to
% Spending of Respondents Advertise with Brand-Safe Sites?

% Spending of Respondents

Spendin Spending
g more less 14% No, this was
33% Yes, this not part of the
was one of decision
many 35%
Spending about the same reasons 48%
Yes, this
53% was the
primary
reason 17%
Source: Brightroll (4/2017) 16
INDUSTRY TOOLS

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 Fake News, Real Consequences: Impact on Consumers, Publishers and Advertisers – PDRF 2017 Madrid

Industry giants – Facebook, Google - cchallenged by advertisers to fight

fake news
INDUSTRY TOOLS

“We’re committed to helping quality journalism thrive on Facebook.

We’re making progress through our work with news publishers and
have more work to do.” (Facebook)

“We want to publishers succeed as they transition to digital… it’s a

priority.” (Google)

But is it working?
“They’re talking to us, but there hasn’t been a lot of action yet.” (News
Media Alliance)

Source: NY Times (7/9/2017) 18

 What questions should advertisers/agencies be asking?

1. Is your blacklist inclusive?

2. What are the types of

content you are not
comfortable running
next to?

3. What technology are you

using to mitigate risk?

4. Are there publisher,

channel or media format
limitations preventing
blocking?

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 Fake News, Real Consequences: Impact on Consumers, Publishers and Advertisers – PDRF 2017 Madrid

No single tool to measure brand safety

INDUSTRY TOOLS
But growth in the area is an indication of demand

20%
of media decision makers
rely on “internal monitoring/management”

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Four Challenges
to Overcome for
a Comprehensive
Brand Safety
Solution
Challenge #1 Challenge #2 Challenge #3 Challenge #4
“Brand safety” A blacklist needs help Fake news Transparency in
can be highly for strategic brand requires human brand safety
subjective safety identification performance

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Rely on
experts to
identify fake
news
Open Brand Safety (OBS)
Framework

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 Open Brand Safety (OBS)
A measurement and analytics
Challenge #3: company improving brand
advertising online
Cut off funding to
fake news and A service for journalists that
extremist content identifies videos likely to go viral
and verifies their authenticity
using tech +
human review Top journalism institutions, fact
checkers, and think tanks on the
forefront of fake news identification

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 If brand safety relies on accurate content classification
and whether domains are classified as fake news, you
Prioritize need a way to monitor activity on those fronts
brand safety
measurement Potentially False Information

Moat’s new
metric:
Potentially
False
Information

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WHAT DOES IT MEAN?

25
 Importance of
Fake news isn’t
credible context
new
for advertisers

NEED FOR
BALANCE

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 Fake News, Real Consequences: Impact on Consumers, Publishers and Advertisers – PDRF 2017 Madrid

What does this all mean and how can we continue to fight for the integrity
of our content and advertising environments?
THOUGHTS

How can social media be better controlled and to what extent

should it be?

What do consumers want?

How can programmatic buying be better improved to maximize

effective, credibility and safe placement?

Adtech will play an even greater role.

Source: Brightroll (4/2017) 27