Advertising and marketing have undergone a massive transformation over the past decades thanks to the rise of the Internet and advanced technological advancements. The days when businesses could only rely on traditional advertising methods such as direct mail, billboards, flyers, and radio and TV ads to increase sales are long gone. Now it’s all about reaching potential customers online and using data to specifically target an audience. Advertising has entered the digital age and many companies are at the forefront of this trend right now.
Many investors were rightly concerned about how businesses that rely heavily on online advertising could navigate the pandemic, given that many businesses have been forced to cut ad spending to cope with financial constraints. However, we’ve seen ad spend increase dramatically so far in 2021, and investors should be pretty confident in the long-term growth story surrounding the biggest names in the industry. If you’re interested in some of the best online advertising campaigns to buy right now, here are 3 great options for you to consider.
Alphabet (NASDAQ: GOOGL)
Alphabet’s recovery from last year’s drop in ad revenue has been nothing short of extraordinary, and it’s certainly one of the strongest names in online advertising to consider adding to your business plans. long term investment. The company is the world’s leading internet search provider, the largest generator of internet advertising revenue, and arguably one of the best tech stocks, period. Alphabet’s advertising program, called AdWords, helps businesses showcase their ads when people search for specific information on Google.
This revolutionary program has many benefits, including greater brand awareness thanks to Google’s massive reach, faster results than with search engine optimization, more conversions, and the ability to advertise directly to people who are looking for something specific. Alphabet just released a first quarter earnings report that includes $ 55 billion in revenue, up 34% year-over-year and diluted EPS of $ 26.29, up 166% from ‘year after year. Ad spend is making a comeback, with the company reporting $ 44.6 billion in ad revenue in the first quarter, up 32.3% from a year ago. These are staggering numbers for a mega-cap tech company like Alphabet, and the fact that the company’s cloud business is also growing at a steady pace makes this stock a fantastic option for long-term investors.
Facebook (NASDAQ: FB)
Then we have Facebook, another large-cap tech company that has been instrumental in changing the way businesses reach potential customers. As the owner of some of the world’s most widely used social media platforms including Facebook, Instagram, Facebook Messenger, and WhatsApp, it’s easy for businesses to recognize the advertising potential here. Direct response advertising, in particular, is a major driver of revenue growth for the company. This involves getting prospects to click a “call to action” button by serving the ads to a targeted audience. These types of ads are used a lot in ecommerce and rely heavily on storytelling, video footage, and emotional responses to make a sale.
Just think of all the data that Facebook has access to with its 1.6 billion daily active users. Advertisers can tailor their online advertising based on age, location, gender, consumer preferences and more thanks to the way Facebook is designed. The company had a huge Q1 2021 and reported $ 25.4 billion in advertising revenue, up 46% year-over-year. Diluted EPS also rose an astounding 93% year over year to $ 3.30. Investors should expect continued business growth as more companies move away from traditional media and turn to the internet and social platforms for their advertising needs.
The trading desk (NASDAQ: TTD)
The Trade Desk was a favorite among growing investors last year and rose more than 194%, but has since cooled. This is a strong ‘buy down’ candidate for the more risk-averse investors interested in online advertising stocks, especially as the stock recently recovered the 50-day moving average. . The Trade Desk is a fascinating company that provides a self-service platform for customers to purchase and manage digital advertising campaigns. These campaigns can be aimed at a variety of different formats including mobile devices, computers, smart TV, etc.
This company is the largest demand-side platform, which means buyers of digital ad inventory can manage multiple ad and data exchange accounts through a single interface. It’s also worth mentioning that The Trade Desk is experiencing steady profit growth and reported revenue of $ 836 million in 2020, up 26% year-over-year. Keep an eye out for the market reaction to the company’s upcoming first quarter results, which will be released on Monday, May 10 before the bell.
Facebook is part of the Entrepreneur Index, which tracks some of the largest publicly traded companies founded and run by entrepreneurs.
Should you invest $ 1,000 in Facebook now?
Before you consider Facebook, you’ll want to hear this.
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