Morgan Stanley Punishes Media

In the latest sign of advertisers’ heightened sensitivity to editorial coverage, Crain's reports that embattled financial giant Morgan Stanley informed key publications of new guidelines that require its ads to be pulled as negative stories about the company are published.

• “In the event that objectionable editorial coverage is planned, agency must be notified as a last-minute change may be necessary. If an issue arises after-hours or a call cannot be made, immediately cancel all Morgan Stanley ads for a minimum of 48 hours,” reads a key section of its planned addition to ad contracts (according to Crain's and executives who’ve seen it).

Thought for News Consumers: With this scenario, a news consumer would only see advertisements for Morgan Stanley in publications that write positive things about Morgan Stanley. (Crain's, you may have just lost an advertiser.)
Thought for Advertisers: Many publications will scream back at Morgan Stanley: "is this fair and legal?" (Or, maybe they won't scream, they'll whisper?)
Thought for PR: On the media relations front, any 'media alert' material PR practitioners pitch to editors that reference "financial services competitors" etc. could be turned down with disinterest (for publications' fear of losing potential current or future Morgan Stanley ad dollars).