Companies and digital platforms help sustain misinformation sites through advertising. Despite efforts to reduce misinformation, ads from well-known firms continue to show up on these sites, providing them with funding.
The rise of artificial intelligence is likely to make this problem worse. AI makes it easier to produce large amounts of misleading content that can attract ad revenue.
Spreading misinformation
A study from Carnegie Mellon explored why online falsehoods spread and suggested ways to reduce the funding of misinformation.
“Misinformation can cause serious harm, such as creating political discord and worsening the climate crisis,” the researchers noted. “Our study is a first step toward figuring out how to stop the flow of ad money to these sites.”
The researchers focused on three main issues. First, they examined how advertising companies and digital ad platforms help monetize misinformation. They built large datasets that combined information on misinformation websites with ad activity from 2019 to 2021. This data included nearly 5,000 websites (about 1,250 of which spread misinformation) and over 42,000 advertisers, totaling more than nine million ad placements over three years.
Supporting the spread
The study found that many companies advertise on misinformation websites, with digital ad platforms spreading these ads widely. Misinformation sites rely heavily on ad revenue, and digital ad platforms amplify this financial support.
Second, to understand consumer behavior, the researchers conducted an experiment with a sample of the U.S. population. They varied the factual information given to participants and measured their reactions. The study found that consumers often reacted negatively to companies advertising on misinformation sites, switching to other brands and reducing their demand for those firms’ products. This reaction persisted even when consumers knew that digital ad platforms were responsible for ad placements. Consumers also expressed concerns and signed petitions urging companies to stop advertising on misinformation sites.
Finally, the researchers looked into why misinformation continues to be funded despite consumer backlash. Surveys of corporate decision-makers showed that while leaders believed many companies advertised on misinformation sites, they underestimated the likelihood of their own companies doing so. This suggests that many leaders are unaware of this issue and may be funding misinformation without realizing it. Once informed, these leaders wanted to learn more and explore ways to reduce this funding.
Based on these findings, the authors suggested two low-cost, scalable solutions:
- Increase transparency for advertisers about where their ads appear. This could reduce ad placements on misinformation sites, especially for companies unaware of their ads’ locations. Existing laws could include measures to improve transparency.
- Make it easier for consumers to find out which companies advertise on misinformation sites. Simple disclosures and company rankings could hold firms accountable and pressure them to change.
“These findings have practical implications,” the authors said. “Given the potential for consumer backlash, ad companies should consider consumer preferences when placing ads and be cautious with automated digital ad platforms.”
The study noted that backlash was especially strong among women and politically left-leaning consumers, suggesting that companies targeting these groups should be particularly careful.
