Companies and digital platforms contribute to sustaining misinformation outlets financially through advertising. Despite efforts to combat misinformation, prominent firms and organisations fund such outlets inadvertently. The proliferation of falsehoods is expected to increase as artificial intelligence facilitates the creation of large volumes of misleading content for ad revenue.
A recent study published in Nature by researchers from Carnegie Mellon University and Stanford University delves into the factors driving the dissemination of online falsehoods. It proposes interventions to curb their financial backing. Ananya Sen, assistant professor of information systems and economics at Carnegie Mellon’s Heinz College and co-author of the study, highlights the profound repercussions of online misinformation, such as fostering political discord and exacerbating environmental challenges. She emphasises that their research marks an initial step towards understanding how to mitigate the financing of online misinformation through advertising.
The study scrutinised several aspects. First, researchers analysed the role of advertising companies and digital ad platforms in monetising misinformation. They compiled extensive datasets covering websites publishing misinformation and tracked ad activities from 2019 to 2021. The dataset encompassed nearly 5,000 websites, including approximately 1,250 misinformation sites, and identified over 42,000 unique advertisers. Throughout the period, these advertisers placed advertisements on news websites over nine million times.
The findings underscore the widespread advertising on misinformation sites across various industries. Digital ad platforms, utilising algorithms to distribute ads, significantly amplify misinformation financing. Misinformation websites primarily monetise through ad revenue, with numerous companies from diverse sectors inadvertently contributing to this funding mechanism.
Secondly, the study gauged consumer preferences through an experiment involving a cross-section of the U.S. population. Participants were exposed to varying factual information, and their responses were evaluated. The research revealed that companies advertising on misinformation platforms face considerable consumer backlash. Consumers tended to distance themselves from firms whose ads appeared on such outlets, diminishing demand for their products. This backlash persisted even when consumers were informed about digital ad platforms’ role in ad placement and the broader implications of ad financing on misinformation.
Furthermore, consumers expressed strong concerns through petitions urging companies to cease advertising on misinformation websites. This consumer activism underscores the potential impact on corporate reputations and consumer loyalty.
Lastly, researchers surveyed corporate decision-makers to ascertain their awareness of online misinformation issues. The study revealed a significant gap between perceived and actual ad placements on misinformation sites among corporate leaders. Many were unaware of their company’s inadvertent financing of misinformation, highlighting a critical informational deficit among decision-makers.
The study’s findings suggest that improving transparency for advertisers about ad placements could mitigate advertising on misinformation websites, particularly among companies unaware of their ad presence on such platforms. Integrated into existing regulatory frameworks, information-based interventions could enhance transparency and accountability in ad placement practices.
Wajeeha Ahmad, a Stanford University PhD student in management science and engineering who led the study, underscores the practical implications of their findings. She recommends that ad companies consider consumer preferences when placing ads online and exercise caution in automating ad placement processes through digital platforms. The study particularly notes the heightened consumer backlash among women and politically left-leaning individuals, suggesting tailored approaches for companies targeting these demographics.
The study calls for concerted efforts from industry stakeholders and policymakers to curb the inadvertent financing of online misinformation. By enhancing transparency, raising awareness among decision-makers, and aligning ad placement practices with consumer expectations, stakeholders can mitigate the detrimental impact of misinformation on public discourse and societal well-being.
More information: Wajeeha Ahmad et al, Companies inadvertently fund online misinformation despite consumer backlash, Nature. DOI: 10.1038/s41586-024-07404-1
Journal information: Nature Provided by Carnegie Mellon University