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Stagwell's Bold Commitment to Enhance News Media Advertising

In a significant announcement made today, Stagwell (NASDAQ: STGW) has expressed its intention to increase advertising expenditures in news media by 22% year-over-year by the year 2025. This decision is closely tied to the ongoing discourse at the second annual Future of News UK summit, where the focus is on fortifying the relationship between journalism and marketing.

Stagwell’s Chairman and CEO, Mark Penn, articulated the company's philosophy by stating, "Supporting trusted journalism is beneficial not only for society but is also a strategic business move." He emphasized that the increasing evidence supporting this standpoint is the driving factor behind their commitment to bolster their spending on news media advertising.

The Future of News Initiative

This move is part of Stagwell's Future of News initiative, launched to rejuvenate the connection between news journalism and marketing. Stagwell aims to achieve this by conducting detailed research, hosting events, and encouraging informed discussions surrounding issues of brand safety. A recent survey conducted by HarrisX among over 500 CEOs and board directors in the EMEA region has highlighted that a staggering 89% of these leaders closely monitor the news, reading an average of five articles per day – an indication of the value they place on news media as a critical advertising channel.

Insights from the Survey

The findings from HarrisX reveal some compelling statistics:

• - Media Value Recognition: About 80% of EMEA CEOs believe that news media provides a formidable means for companies to connect with stakeholders.
• - Perceived Importance: 73% of UK CEOs regard news media as essential to democracy, a sentiment echoed by 82% of CEOs from the Gulf Cooperation Council (GCC).
• - Investment Belief: Remarkably, 85% of the respondents agree that investing in news media advertising is a prudent choice, with 92% of CEO opinions from the GCC affirming the same.
• - Reputation Impact: 86% of CEOs believe that such advertising will positively influence their reputations both among the general public and financial investors.

Addressing Brand Safety Concerns

While brand safety has become a primary concern in advertising, reactions to its application vary. Although only 9% of respondents thought that safety protocols should be entirely disregarded, a notable 71% expressed concerns that these protocols are excessively applied, negatively impacting media outlets and advertisers. Interestingly, the perspective varies by region; 26% of German CEOs believe that these protocols should encompass all types of news media, compared to 47% from France and 51% from the GCC.

James Townsend, the CEO of Stagwell EMEA, commented on these findings, stating, "Despite the challenges posed by brand safety, AI, and political factors, business leaders recognize the undeniable impact of news media on effective advertising strategies."

Upcoming Discussions and Participation

Stagwell plans to host further dialogues this evening at its EMEA headquarters in London. A panel comprising industry experts from CNN International, Newsquest, The Sunday Times, and others will explore the vital role of journalism in advocating truth and illuminating significant issues.

For those interested in exploring Stagwell's Future of News initiative further, additional information is available at stagwellglobal.com/future-of-news/. This initiative stands as a testament to Stagwell's commitment to advancing the significance of journalism while simultaneously harnessing it to enhance brand advertising.

About Stagwell

Stagwell is recognized as a challenger holding company, committed to transforming the landscape of marketing. Their approach melds innovative, culturally relevant creativity with cutting-edge technology, seeking to harmonize marketing's artistic and scientific elements. With specialists operating in over 40 countries, Stagwell is dedicated to helping ambitious brands achieve effective results and cultivate successful business outcomes.

To learn more about Stagwell, visit StagwellGlobal.com.