In this article, we will discuss the best advertising and ad tech stocks to buy now. You can skip our detailed analysis of the advertising industry and go directly to the Best Advertising and Ad Tech Stocks To Buy Now.
According to the Global Advertising Market report, the global advertising market was valued at $ billion in . According to Magna, a leading global media intelligence agency, global media companies’ advertising revenues went up by % from valuations in , amounting to over $ billion. Advertising sales from TV, radio, print, and cinemas saw a % upside from levels and were valued at $ billion, while digital advertising formats generated revenues of $ billion in , up % from levels.
A major factor driving the growth of the global advertising industry is the benefits of digital marketing and how it has accelerated and optimized the way businesses reach consumers. According to Statista, global spending on digital advertising was valued at roughly $ billion in and went up to $ billion in . Alphabet . NASDAQ:GOOGL reported digital advertising revenues of $ billion in while Meta Platforms, . NASDAQ:FB and Amazonm, . NASDAQ:AMZN generated digital advertising revenues of $ billion and $. billion, respectively, in .
Businesses are working on finding new ways to gauge consumer interest and deliver targeted content without the use of third-party cookies. Contextual advertising is becoming increasingly popular in the industry as businesses shift toward an advertising strategy that sits well with consumers privacy concerns. According to a GumGum report, % of U.S. advertising companies are spending on contextual advertising, and % of them have increased the spending budget for context-based advertisements.
The rise in popularity of first-party data, the integration of artificial intelligence in digital marketing, and data-driven connected TV are some of the key contributors to the lucrative future the advertising industry holds. According to GlobalData, advertising technology will catapult the advertising industry from a billion-dollar industry in to a trillion-dollar industry by .
Major tech giants such as Meta Platforms, . NASDAQ:FB, Alphabet . NASDAQ:GOOGL, and Amazonm, . NASDAQ:AMZN are working on innovative solutions to drive the growth of internet advertising. Read on to learn about more companies active in the space.
To determine the best advertising and ad tech stocks to buy now, we studied industry analysis reports published by accredited market intelligence agencies. We identified key players in the advertising space and looked into the technological advancements they are working on to reshape internet advertising, in addition to studying their business models and financial reports. We also gave weight to the analyst and investor sentiment for each stock.
PubMatic, . NASDAQ:PUBM develops online advertising software and strategies for the digital publishing and advertising industry. This February the company reported earnings for the fiscal fourth quarter of in which the company beat EPS estimates by $.. PubMatic, . NASDAQ:PUBM reported revenues of $. million, up .% year over year from $. million, and reported earnings per share of $. for the quarter.
On March , , RBC Capital analyst Matthew Swanson lowered his price target on PubMatic, . NASDAQ:PUBM to $ from $ while maintaining an Outperform rating on the shares. The analyst believes that the company s recent quarterly earnings and market positioning are undervalued and the stock is bound for profitable growth. As of April , , PubMatic, . NASDAQ:PUBM has gained .% over the past six months.
By the end of the fourth quarter of , PubMatic, . NASDAQ:PUBM was found on hedge fund portfolios that held combined stakes of $. million in the company. This is compared to positions in the third quarter with collective stakes amounting to $. million.
Renaissance Technologies initiated a position in PubMatic, NASDAQ:PUBM in Q . PubMatic, . NASDAQ:PUBM are worth $. million, making Renaissance Technologies the most prominent stakeholder in the company.
Magnite, . NASAQ:MGNI is an advertisement technology company which operates an independent sell-side advertising platform in the United States and internationally. The company’s platform offers applications and services for sellers of digital advertising inventory. This February, Magnite, . NASDAQ:MGNI announced that it has acquired Carbon, a platform that enables publishers to measure, manage, and monetize audiences in real-time. With Magnite, . s NASDAQ:MGNI professional presence and Carbon s publisher-first technology, media owners and advertisers can target audiences and enhance the value of their advertising without relying on third-party cookies.
On February , , Magnite, . NASDAQ:MGNI reported earnings for the fiscal fourth quarter of for which the company outperformed the market. The company s earnings per share came to $., beating estimates by $.. Magnite, . NASDAQ:MGNI generated quarterly revenues of $. million, up .% year over year, outperforming market consensus by $. million. Moreover, this February, Craig-Hallum analyst Jason Kreyer lowered his price target on Magnite, . NASDAQ:MGNI to $ from $, while maintaining a Buy rating on the shares. The analyst noted that as supply-chain constraints ease, the company is well-positioned for growth given a conservative set of estimates and attractive valuation for the stock.
According to Insider Monkey s database, hedge funds held stakes in Magnite, . NASDAQ:MGNI worth $. million at the close of the fourth quarter of . Of these, Nine Ten Partners was the most prominent shareholder in the company owning over . million shares of stock which amount to a stake of $. million in the company.
Here is what Alger, an investment management firm, had to say about Magnite, . NASDAQ:MGNI in its second-quarter investor letter:
“Magnite provides an advertising supply side platform for publishers. The technology helps publishers such as network television stations or cable news providers automate the sale of digital advertising inventory across different formats and channels, like desktop, mobile, video, audio, connected TV and over-the-top TV. s monetize their digital advertising inventory by using Magnite’s platform to access a global market of ad buyers, including advertising agencies that use supply side platforms. Magnite also helps sellers decrease costs and protect their brands and user experience. Magnite receives ad inventory from sellers and optimizes publishers’ revenue yields by processing the highest buyer bids. Currently, Magnite keeps approximately % of ad spend as revenue i.e. take rate and passes on the remainder of the ad spend to publishers. Magnite’s clients include many of the world’s leading publishers of websites and mobile applications and the company believes that its platform reaches approximately billion individuals globally.
Shares of Magnite underperformed in the second quarter due to the growth market selloff and slower-than-expected growth in connected TV during the first three months of this year. We believe the % growth in connected TV was below expectations and due to a one-time issue with one of the company’s publishing partners that ran out of advertising inventory. Management noted the issue has been fixed and the company saw strong reaccelerating growth in April. Additionally, we believe Magnite’s recent acquisition of video advertising company SpotX will significantly bolster the company’s positioning within connected TV, a high-growth area of the digital advertising market that is taking share from linear TV ad budgets.”
Digital Turbine, . NASDAQ:APPS is a digital marketing company that delivers end-to-end products and solutions for mobile operators, original equipment manufacturers, and third parties to enable the monetization of mobile content. hedge funds were bullish on Digital Turbine, . NASDAQ:APPS by the end of the fourth quarter of . The total stakes of these hedge funds amounted to $. million, up from $. million in the preceding quarter with positions.
For the fiscal third quarter of , Digital Turbine, . NASDAQ:APPS generated revenues of $. million, up .% year over year, and outperformed market consensus by $. million. The company reported an EPS of $., beating estimates by $..
On February , , Maxim analyst Allen Klee lowered his price target on Digital Turbine, . NASDAQ:APPS to $ from $ but reiterated a Buy rating on the shares after the company s quarterly earnings outperformed the market. The analyst commented that Digital Turbine, . NASDAQ:APPS has grown into a billion-dollar annual revenue company, boasting a diverse portfolio of mobile ad-tech solutions and competitive advantages with SingleTap, customer data, and independence with limited exposure to Apple . s NASDAQ:AAPL IDFA privacy rule changes.
Greenhaven Road Investment Management is the dominating shareholder in Digital Turbine, . NASDAQ:APPS. The fund s stakes in the company came to $. million, which covers .% of its Q investment portfolio.
Digital Turbine, . NASDAQ:APPS is innovating in the digital marketing space. Other key players in the advertising industry include Meta Platforms, . NASDAQ:FB, Alphabet . NASDAQ:GOOGL, and Amazonm, . NASDAQ:AMZN.
GreenWood Investors, an investment management firm, mentioned Digital Turbine, . NASDAQ:APPS in its fourth-quarter investor letter. Here s what the firm had to say:
“A great example of a combined growth, value and quality stock is a recent addition to the portfolio, Digital Turbine APPS. The company has made two acquisitions which nearly tripled the revenue of the company while only increasing the shares outstanding by %. Its core technology, installed directly on . billion Android devices soon to be . billion, allows it to truncate the multi-step process of installing a mobileapplication from an ad into one seamless step. Not only is the technology better than what vertically-integrated Apple can offer, but it significantly improves advertiser outcomes, by a factor of -x. Most of those improved economics will begin accruing to Digital Turbine in the year ahead.”
Trade Desk, . NASDAQ:TTD operates a cloud-based platform that allows buyers to create, manage, and optimize data-driven digital advertising campaigns across various ad formats and channels, including display, video, audio, native, and social. On March , , Guggenheim analyst Michael Morris initiated coverage of Trade Desk, . NASDAQ:TTD with a Buy rating and a $ price target.
This February, Trade Desk, . NASDAQ:TTD reported Q earnings for which the company beat on both EPS and revenue. The company reported revenues of $. million, up .% year over year, and beat revenue estimates by $. million. The company reported earnings per share of $. and beat expert EPS estimates by $..
Zevenbergen Capital Investments is the largest stakeholder in Trade Desk, . NASDAQ:TTD having stakes of more than $ million in the ad-tech company. In addition to Zevenbergen Capital, other hedge funds held stakes in Trade Desk, . NASDAQ:TTD at the end of the fourth quarter of . The combined value of these stakes came to $. million, up from $. million in the prior quarter with positions.
Here is what Richie Capital Group had to say about Trade Desk, . NASDAQ:TTD in its fourth-quarter investor letter:
“The Trade Desk TTD – up .% – The bump in shares over the quarter was somewhat of rebound as the stock sold off in Q due to multiple concerns including Google eliminating their use of cookies and Apple’s move to “opt in” for advertisement identity on its devices. Additionally, the market was concerned that advertisers would cut their marketing budgets ahead of the Christmas season due to the global supply chain problems. The company reported a great quarter and alleviated concerns regarding all of the above. TTD has championed a new paradigm with UID . and their recently released Solimar product will provide the best solution to leverage that platform. The Trade Desk continues to take share and management emphasized their tremendous growth, and opportunity, internationally with of the global advertising market being outside the US.”
Omnicom Group . NYSE:OMC provides advertising, marketing, and corporate communications services. This March, Omnicom Group . NYSE:OMC announced that it has acquired TA Digital, a digital marketing company, to expand its digital transformation, content management, commerce, and customer experience capabilities.
This February, Omnicom Group . NYSE:OMC announced that its earnings per share for the fiscal fourth quarter of came to $., beating estimates by $.. The company generated revenues of $. billion, up .% year over year, and beat revenue estimates by $. million. As of April , , the stock has gained .% over the past six months, and the company s market cap stands at $. billion.
On March , , Argus analyst Kristina Ruggeri upgraded Omnicom Group . NYSE:OMC to Buy from Hold with a $ price target. The analyst sees Omnicom Group . NYSE:OMC positioned to benefit from recent trends in e-commerce marketing and data analytics, also noting the company s strategic acquisitions which will further accelerate its growth in the industry. The analyst further emphasized that the company pays attractive dividends, and as of April , , Omnicom Group . NYSE:OMC has a forward dividend yield of .%.
Omnicom Group . NYSE:OMC is becoming a popular stock pick among investor circles, and the investor sentiment for the stock is positive. As of the fourth quarter of , hedge funds held stakes in Omnicom Group . NYSE:OMC worth more than $. million. This is compared to positions in Q , with stakes of more than $. million.
As of April , , AQR Capital Management is the most prominent shareholder in Omnicom Group . NYSE:OMC having stakes worth $. million. The fund upped its Q stakes in the company by %, and as of Q , Omnicom Group . NYSE:OMC makes up .% of AQR Capital s F portfolio.
Like Meta Platforms, . NASDAQ:FB, Alphabet . NASDAQ:GOOGL, and Amazonm, . NASDAQ:AMZN, Omnicom Group . NYSE:OMC is one of the best ad tech stocks to buy now.
