Misinformation. Anyone who consumes any form of media or news will know this word or even be subject to it most days. It spreads through every facet of our world - politics, crime, celebrity and business. And it’s on the rise.
What is misinformation and how does it impact businesses?
Misinformation refers to false or inaccurate information regardless of whether it has been created or shared intentionally. It has been around for thousands of years but the rise of social media has allowed it to thrive.
No business is free from its impact either. Whether you’re a start-up or an established business, misinformation is a rising threat.
- In 2017, a small Indian restaurant in London was falsely accused of serving human meat on Facebook — the family business subsequently saw its revenue cut in half.
- In 2019, rumours began on WhatsApp that Metro Bank was facing financial difficulties and might shut down. By 4:00 pm there were lines of anxious customers outside several branches looking to close out their accounts or empty safe deposit boxes. Coupled with a highly publicised accounting error and poorly performing stock, it rendered the rumour more believable. When markets opened on Monday, the bank’s share price tumbled by 9%.
What’s the difference between misinformation and disinformation?
Fake news is often seen as the umbrella term which encompasses misinformation and disinformation. However, there is a clear contrast between the two. Disinformation is deliberately deceptive information spread with the intent to mislead. Misinformation doesn’t have the same deceptive origin. Intent is the differentiating factor here.
The agenda behind dis and misinformation can cover political strategy and malicious players, to poor fact-checking but businesses need to recognise the differentiation between the two.
Why does misinformation matter to businesses?
We’ve reached the beginning of the Age of Misinformation, with the World Economic Forum citing it as the top risk to businesses in its Global Risk Report. It is costly too with estimates stating that misinformation costs the global economy at least $78 billion each year. Appearing to associate, even accidentally, with false content can lead to significant reputational damage, with 73% of consumers stating that they feel unfavourably toward brands that have been associated with misinformation. This reputational damage can also impact a brand's bottom line, with 50% of consumers admitting they are less likely to purchase from a brand that appears to support misinformation.
Crucially, business leaders do not see this issue going away with more than half stating the effects of misinformation are likely to be worse in 20 years than they are now.
So how does it arise? Misinformation can occur for different reasons, including:
- Human error: people might share incorrect information unknowingly or due to misunderstandings
- Misinterpretation: misinterpreting data or events can lead to misinformation
- Rumours: unverified stories can spread quickly, especially via social media, contributing to misinformation
- Incomplete information: information can be shared which is incomplete, leading to miscommunication
- Exaggeration: information might be exaggerated or sensationalised, leading to distortion of facts
How can PR and comms help?
Misinformation can have significant consequences, including creating confusion, spreading panic, or undermining trust in reliable information sources. The comms industry must step up to support businesses in their efforts to demystify misinformation and build businesses that are seen as trusted sources of insights, data and information.
