Study by Channel Factory and Magna Media Trials reveals impact of online ad placement

Channel Factory and MAGNA Media Trials' recent study has found that running ads next to ‘Grey’ - content that may not necessarily be deemed unsafe or unsuitable in general but is not aligned to a particular brand’s values or voice - seriously diminishes its effectiveness and harms other important advertising metrics,

The Art of Alignment: The Relationship Between Brand Personality and Content Appropriateness study shows that more than a third of Australians (36%) believe brands are endorsing content they advertise next to in online environments - leaving them accountable in consumers minds’ for that content.

Key findings from the Australian study found more than a third of Aussie consumers agreed a brand was supporting the content its ad was adjacent to (36%).

Consumers from all three markets had stronger message associations adjacent to standard content (+9 pts) versus ads adjacent to questionable content (+6 pts). Persuasion metrics like purchase intent and search intent had major decreases (-9 pts each).

Additionally, brands have the most to lose with Gen Z Adults and Millennials, with purchase intent decreasing by 12 pts for Gen Z and 14 pts for Millennials when the brand ran ads against questionable content vs. standard content.

Alex Littlejohn, managing director APAC for Channel Factory, said: “Online video is an incredibly effective advertising channel for brand and performance. But this new research shows that not all video is born equal and savvy marketers need to be taking a broader view of brand safety to include brand suitability to make their budgets work even harder.

“Ad effectiveness is front and centre for the industry this year, and younger audiences are especially conscious of the content ads are running next to. Any brand wanting to optimise return on investment needs to be aware of the impact this grey area can have on your business outcomes if you don’t get it right.”

Hannah Rook, MediaBrands MAGNA group intelligence and insights director, Australia, said: “We are excited to broaden our view of impact quality to include a deeper analysis of the video content in which the ad itself is placed alongside.

"Many brand safety practices are black and white in nature, the opportunity to broaden this approach to proactively consider brand suitability in specific content environments will be key to maximise results for our clients.”

Joshua Lowcock, global chief media officer at UM said: “Ad environments that fall into grey areas require careful judgment calls be made by brands and their agencies. There isn’t always a one-size fits all solution as misaligned content for one brand could be a smart, under-leveraged opportunity for another.

"Put differently, what’s right for one brand isn’t always right for another.”