The growing dominance of social media platforms like X (formerly Twitter) raises concerns about the impact on democratic values and the integrity of public discourse. The recent lawsuit filed by Elon Musk against the World Federation of Advertisers highlights the contentious landscape of digital advertising and its broader implications.
Amidst these developments, it is imperative that Europe develops an Environmental, Social, and Governance (ESG) taxonomy that recognizes the democratic value of investments in professional media. This move could significantly redirect advertising investments towards editorial media that support and uphold democratic values.
Social media platforms have transformed into major media sources. This shift has fueled societal polarization and the spread of disinformation, undermining the quality of public discourse. Professional media, subject to journalistic standards and editorial oversight, is being sidelined in favor of platforms which thrive on volume rather than veracity, and profit over public good.
The economic realities of the media landscape reveal a troubling trend. Advertising revenues, which are crucial for the survival of traditional media, are increasingly funneled to social networks and search engines. In Spain, for instance, advertising in the press sector has plummeted by 62% from 2007 to 2022, while investment in social media has surged by 800%.
To counteract this trend, Europe needs to develop an ESG taxonomy that explicitly includes the sustainability of democracies as a core objective. This framework should recognize professional media, which adheres to rigorous journalistic standards, as a vital contributor to the ESG profile of companies. By doing so, we can introduce new key performance indicators (KPIs) that measure advertising spend in traditional media against total advertising spend.
Just as corporations are now driven to source renewable energy despite higher costs to improve their ESG profiles, they should also be motivated to support professional media to enhance their contributions to societal sustainability. This shift would help reduce the economic incentive to exclusively advertise on social media platforms that do not align with ESG objectives.
Redirecting advertising investments towards professional media is not just an economic decision but a moral imperative. It would ensure that quality journalism, which plays a critical role in holding power to account and informing the public, remains viable. As marketing managers balance return on investment with ESG commitments, they will find that supporting traditional media is an investment in the long-term health of democracy.
The sustainability of democracies must become a central consideration in ESG debates. By adopting a European ESG taxonomy that acknowledges the democratic value of media investments, we can foster an environment where quality journalism thrives and social media platforms are held to higher standards. This approach would not only promote transparent and accountable democracies but also ensure that our advertising dollars are spent in ways that strengthen, rather than undermine, our social fabric.
It is time for Europe to lead the way in redefining ESG standards to include democratic sustainability, thereby setting a global precedent that prioritises the integrity of public discourse and the health of our democracies over short-term economic gains.
-Wout van Wijk, Executive Director of News Media Europe