Stagwell Inc. · NASDAQ:STGW
Stagwell — Investor Presentation (May 2024)
37 slides from Stagwell's investor presentation, May 15, 2024
Slide 1: Future of News
Slide 2: Future of News
FUTURE OF NEWS May 15, 2024 2
Slide 3: Thank you to our partners
FUTURE OF NEWS THANK YOU TO OUR PARTNERS 3
Slide 4: The Opportunity
FUTURE OF NEWS THE OPPORTUNITY 4
Slide 5: News is the foundation of a thriving democracy and a critical marketing vehicle
FUTURE OF NEWS NEWS IS THE FOUNDATION OF A THRIVING DEMOCRACY AND A CRITICAL MARKETING VEHICLE 1. Press is essential to democracy 2. News is an under-tapped vehicle to drive ROI 3. Partnership is needed to enable a thriving future 5
Slide 6: Brands, stop feeding the vicious cycle
FUTURE OF NEWS QUALITY Brands BRANDS, NEWS don’t advertise on news News STOP tackles hard- hitting issues revenue declines FEEDING THE VICIOUS CYCLE Quality journalism Newsrooms lose resources, and SUFFERS THE MOST some even go out of business Mis, mal and Journalism dis-information becomes more pro
Slide 7: Start feeding the virtuous cycle
FUTURE OF NEWS QUALITY Advertisers START NEWS support the news Brands benefit FEEDING tackles the hard-hitting from reaching a valuable new THE issues audience VIRTUOUS CYCLE Quality journalism and top-tier brands News gets monetized BOTH THRIVE more Newsrooms have Newsrooms have more freedom greate
Slide 8: Brand safety is contributing to the vicious cycle
FUTURE OF NEWS BRAND SAFETY IS CONTRIBUTING TO THE VICIOUS CYCLE 8
Slide 9: 25% of Americans are news junkies
FUTURE OF NEWS 25% OF THE AMERICAN POPULATION… OF 73% ARE NEWS READERS (FOLLOW NEWS CLOSELY) AMERICANS 25% ARE NEWS JUNKIES ARE NEWS (FOLLOW NEWS VERY CLOSELY) JUNKIES 11% ARE EXCLUSIVE NEWS JUNKIES (ONLY FOLLOW NEWS, NOT SPORTS OR ENTERTAINMENT, VERY CLOSELY) 9
Slide 10: There are more news junkies than anything else
FUTURE OF NEWS THERE AMERICANS WHO CLOSELY FOLLOW… ARE MORE NEWS 25% News JUNKIES THAN ANYTHING 23% Sports ELSE 17% Entertainment 10
Slide 11: News junkies are valuable audiences
FUTURE OF NEWS NEWS 25% NEWS JUNKIES JUNKIES (FOLLOW NEWS VERY CLOSELY) Check the news Read ARE an average of an average of VALUABLE 5.6 TIMES PER DAY 7 PER DAY news articles AUDIENCES MORE THAN ARE PRIMARILY THE GEN. POPULATION 64% GEN X+ 58% 51% COLLEGE GRADS+ 38% 46% FULL TIME EMPLOYED 40% 37% $1
Slide 12: Microtrend: long attention spanners
FUTURE OF NEWS MICROTREND CONVENTIONAL WISDOM says America’s attention span is shrinking, but more people than ever are… LONG WATCHING 3-HOUR MOVIES ATTENTION 2023 Best Picture nominees were longest ever on average SPANNERS FINISHING TRIATHLONS 3.1 million Americans competed in 2023 TAKING UP CROSSW
Slide 13: News Advertising Study
FUTURE OF NEWS NEWS ADVERTISING STUDY 13
Slide 14: The study and its objective
FUTURE OF NEWS THE STUDY AND ITS OBJECTIVE › A first-of-its-kind randomized experiment with nearly 50,000 American adults to determine if ad adjacency matters. › We tested 10 different brand ads placed adjacent to 8 types of news content, using real ads and real stories. › This definitive study prov
Slide 15: Reputational brand metrics assessed
FUTURE OF NEWS REPUTATIONAL BRAND METRICS ASSESSED How likely or unlikely are you to make a purchase 1 Purchase Intent or use services from [INSERT BRAND]? How favorable or unfavorable are you towards 2 Favorability [INSERT BRAND]? 3 Cares about its customers 4 Is a trustworthy company 5 Offers good
Slide 16: What the results show
FUTURE OF NEWS WHAT THE RESULTS SHOW › It is safe for brands to advertise adjacent to quality news content, regardless of topic. › Ads placed adjacent to stories covering politics or gun shootings perform as effectively as ads placed next to a positive business story, on par with sports and entertai
Slide 17: Content tested: news
FUTURE OF NEWS CONTENT TESTED: NEWS Middle East Crime Trump Biden Inflation Business Source: HarrisX 17
Slide 18: Content tested: sports & entertainment
FUTURE OF NEWS CONTENT TESTED: SPORTS & ENTERTAINMENT Sports Entertainment Source: HarrisX 18
Slide 19: "Not brand safe" vs. "brand safe"
FUTURE OF NEWS TO PUT ANOTHER WAY: “NOT BRAND SAFE” VS. “BRAND SAFE” “NOT BRAND SAFE” “BRAND SAFE” Middle East Crime Trump Biden Inflation Business Sports Entertainment Source: HarrisX 19
Slide 20: Key Findings
FUTURE OF NEWS KEY FINDINGS 20
Slide 21: Ads adjacent to top-of-mind news content perform equally well
FUTURE OF NEWS ADS ADJACENT TO TOP-OF-MIND NEWS CONTENT PERFORM EQUALLY WELL… AVERAGE BRAND REPUTATIONAL METRICS Middle East Crime Trump Biden Inflation Purchase 62% 63% 62% 61% 64% Intent Favorability 70% 71% 68% 69% 72% 8 Metric 66.7% 68.0% 66.8% 65.9% 68.6% Average Base: Trump (n=5530), Biden (n=
Slide 22: Compared to "brand safe" content performance
FUTURE OF NEWS …COMPARED TO “BRAND SAFE” CONTENT PERFORMANCE AVERAGE BRAND REPUTATIONAL METRICS Business Entertainment Sports Purchase 61% 62% 64% Intent Favorability 70% 73% 72% 8 Metric 67.5% 68.0% 69.6% Average Base: Trump (n=5530), Biden (n=5557), Mideast (n=5557), Crime (n=5560) QFAV2. Please i
Slide 23: Ads adjacent to "not brand safe" stories perform on par
FUTURE OF NEWS ADS ADJACENT TO “NOT BRAND SAFE” STORIES PERFORM ON PAR with ads next to the “brand safe” articles. AVERAGE BRAND REPUTATIONAL METRICS ‘Not Brand Safe’ Content ‘Brand Safe’ Content 67.2% 68.3% 8 Metric Average 8 Metric Average Trump, Middle East, Crime, Biden, Inflation Business, Spor
Slide 24: Less than three point difference in brand performance across all articles
FUTURE OF NEWS LESS THAN THREE POINT DIFFERENCE IN BRAND PERFORMANCE ACROSS ALL ARTICLES Reputational Middle Brand Metric Average East Crime Trump Biden Inflation Business Entertainment Sports (% Top 2 box) (across topics) (across brands) (across brands) (across brands) (across brands) (across brand
Slide 25: Detailed Demographic Findings
FUTURE OF NEWS DETAILED DEMOGRAPHIC FINDINGS 25
Slide 26: No brand safety issues among Americans following the news very closely
FUTURE OF NEWS NO BRAND SAFETY ISSUES AMONG AMERICANS FOLLOWING THE NEWS VERY CLOSELY Reputational Middle Brand Metric Average East Crime Trump Biden Inflation Business Entertainment Sports (% Top 2 box) (across topics) (across brands) (across brands) (across brands) (across brands) (across brands)
Slide 27: No brand safety issues among Gen Z
FUTURE OF NEWS NO BRAND SAFETY ISSUES AMONG GEN Z Reputational Middle Brand Metric Average East Crime Trump Biden Inflation Business Entertainment Sports (% Top 2 box) (across topics) (across brands) (across brands) (across brands) (across brands) (across brands) (across brands) (across brands) (acr
Slide 28: No brand safety issues among moms
FUTURE OF NEWS NO BRAND SAFETY ISSUES AMONG MOMS Reputational Middle Brand Metric Average East Crime Trump Biden Inflation Business Entertainment Sports (% Top 2 box) (across topics) (across brands) (across brands) (across brands) (across brands) (across brands) (across brands) (across brands) (acro
Slide 29: No brand safety issues among Americans with a college degree
FUTURE OF NEWS NO BRAND SAFETY ISSUES AMONG AMERICANS WITH A COLLEGE DEGREE Reputational Middle Brand Metric Average East Crime Trump Biden Inflation Business Entertainment Sports (% Top 2 box) (across topics) (across brands) (across brands) (across brands) (across brands) (across brands) (across br
Slide 30: No brand safety issues among high earners ($100K+ households)
FUTURE OF NEWS NO BRAND SAFETY ISSUES AMONG HIGH EARNERS ($100K+ HOUSEHOLDS) Reputational Middle Brand Metric Average East Crime Trump Biden Inflation Business Entertainment Sports (% Top 2 box) (across topics) (across brands) (across brands) (across brands) (across brands) (across brands) (across b
Slide 31: No brand safety issues among Democrats
FUTURE OF NEWS NO BRAND SAFETY ISSUES AMONG DEMOCRATS Reputational Middle Brand Metric Average East Crime Trump Biden Inflation Business Entertainment Sports (% Top 2 box) (across topics) (across brands) (across brands) (across brands) (across brands) (across brands) (across brands) (across brands)
Slide 32: Ad adjacency impact among Republicans
FUTURE OF NEWS AD ADJACENCY IMPACT AMONG REPUBLICANS Reputational Middle Brand Metric Average East Crime Trump Biden Inflation Business Entertainment Sports (% Top 2 box) (across topics) (across brands) (across brands) (across brands) (across brands) (across brands) (across brands) (across brands) (
Slide 33: No brand safety issues among Independents
FUTURE OF NEWS NO BRAND SAFETY ISSUES AMONG INDEPENDENTS Reputational Middle Brand Metric Average East Crime Trump Biden Inflation Business Entertainment Sports (% Top 2 box) (across topics) (across brands) (across brands) (across brands) (across brands) (across brands) (across brands) (across brand
Slide 34: A playoff or a drumbeat?
FUTURE OF NEWS A PLAYOFF OR A DRUMBEAT? $2MM $2MM Both are valuable and should be IN NEWS IN SPORTS considered equally depending on your • A sustained campaign with targeted, high impact content One :30sec commercial during the NBA playoffs strategy and goals. • Highly important audience • Unduplica
Slide 35: News can be more effective & efficient
FUTURE OF NEWS NEWS CAN BE MORE EFFECTIVE & EFFICIENT › Sports and entertainment are already darlings of brand advertising › News is under-monetized and prejudiced against › News presents the opportunity to reach a valuable, unduplicated audience › And our research shows that you don’t have to give
Slide 36: Thank you
FUTURE OF NEWS THA HOSTED BY = stacwet 36
Slide 37: Future of News
FUTURE OF NEWS 37