Advertisers Ease Up on Covid-19 Keyword Blocking – nitronet

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The economic impact of Covid-19 has been profound, characterized by pullbacks in ad spend with the extent of the uncertainty characterized by bailouts, layoffs and pay cuts.

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For publishers, the pain has been particularly acute, partly through ad tech’s ability for buyers to automatically prevent ads being served next to content discussing the global pandemic, which is arguably the news item to set the agenda for the decade to come. This is a process popularly known in ad-tech circles as keyword blocking, or blacklisting, a phenomena news organizations are quick to complain about.

The reason many marketers at blue-chip outfits employ such tactics is to avoid news items they fear may divide audiences since negativity is not the domain of most mainstream brands.

Publishers impacted by a double-dose of caution

While the unprecedented impact of Covid-19 on every aspect of society has sent media consumption through the roof, ad spend simply hasn’t followed through. The overall impact of the ensuing pandemic was made clear earlier this week in the IAB and PricewaterhouseCoopers’ Q1 ad spend study, which found that cost per impressions (CPMs) were down 16% on average, with total U.S. digital spend for the period reaching $31.4 billion.

“You have a lot of these ‘purpose-driven’ marketers tweeting about their brand purpose and pulling money from publishers.”

New studies specifically around programmatic trading, plus testimony from industry sources, indicate the negative impact of Covid-19-related keyword blacklisting is beginning to subside.

The extent of keyword blacklisting became particularly acute, as governments across the Western world issued shelter-at-home orders. Our sources in the publishing world accuse marketing teams of hypocrisy. Speaking earlier with nitronet, one source who requested anonymity due to their company’s PR policies, griped, “You have a lot of these ‘purpose-driven’ marketers tweeting about their brand purpose and pulling money from publishers while at the same time saying they want this [Covid-19] coverage to be free and accessible.”

Content verification companies, which provide software to enable blacklisting, also drew the ire of critics. Companies such as Integral Ad Science and DoubleVerify have been accused of starving quality news sources of much-needed revenue in a time of crisis. And after much fingerpointing, content verification providers have been eager to be seen as advising against blacklisting carte blanche.

Tread carefully, but don’t hide

Media buying giant Omnicom Media Group (OMG) published a report last month that found overall CPMs for display ads that were bought and sold programmatically were down 40% between mid-March and mid-April.

Several sources told nitronet this was the result of simple market dynamics of supply and demand during the early stages of the pandemic, with green shoots of recovery starting to emerge.

The sharp contraction in media spend from mid-March, as marketing departments pressed pause on spend amid the economic maelstrom, were met with an overabundance of inventory supply as a result of increased audience demand for reliable news sources. Keyword blocking only served to compound the issue.

During the publishers’ recent Q1 earnings call, News Corp. CEO Robert Thomson, noted, “Gradually, that problem has diminished. We are noticing that the amount of advertising we’re getting is matching, to some extent, the significant increases in traffic across The Wall Street Journal and MarketWatch.”

Meanwhile, Ben Hovaness, managing director, marketplace intelligence at OMG and co-author of last month’s report, delved deeper into the dynamics of the report and noted that CPMs for news content were more resilient over the entire reporting period.

“Intuitively that might seem odd because news sites have seen enormous traffic increases. The reason behind it is the brand safety filtering artificially constraining the supply that buyers are bidding against,” he claimed. “That naturally drives up prices on the remaining news inventory that makes it past the brand safety filters.”

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