Advertising is an age-old industry that is growing at a rapid pace to this day. GroupM, a market intelligence firm, projects Global advertising revenue will grow by about 10% In 2024. Moreover, it predicts that total revenue will eclipse the $1 trillion mark this year. A key factor contributing to the robust growth of this mature industry is innovation. The use of AI is the 2024 success story in advertising. Below, I’ll detail three stocks implementing AI that investors can use to take advantage of this trillion-dollar industry.
Meta: A leading AI-powered advertising ecosystem
Meta platform today
(Upto 05:45 PM)
- 52-week range
- $340.01
▼
$638.40
- Dividend yield
- 0.33%
- P/E ratio
- 28.25
- Price target
- $638.00
Meta platform NASDAQ: META A perfect example of AI and advertising coming together. The Tech giants Controls the giant social media platforms, Facebook and Instagram. They have a lot of data of these users. The company can target users with highly personalized advertising by feeding this data into AI algorithms. This creates a very valuable platform for sellers to buy ads, increasing the demand for space on these apps. This has allowed Meta to accelerate its trailing 12-month ad revenue growth by more than 20%. It has also led to a huge increase in margins in the segment.
Meta platform stock forecast today
$638.00
Up 6.36%buy medium
Based on 43 analyst ratings
| High forecast | $811.00 |
|---|---|
| Average forecast | $638.00 |
| Less predictable | $360.00 |
Data from eMarketer Shows an important indicator of the meta’s dominance in this space and why it may continue. The market share of Meta’s digital platforms was almost the same the alphabet NASDAQ: GOOGLE In 2024 the US of adults talk about spending their time online. Each platform comes to about 7.5% of time spent on digital platforms.
However, in terms of market share of digital ad spend, Meta’s platforms account for over 21.3%. That’s almost four times more than YouTube’s 5.6%. Although people spend similar amounts of time on these platforms, advertisers are willing to spend significantly more in Meta’s environment. This is likely due to the better personalization meta offers advertisers. This means that advertising dollars spent there translate to relatively more business success.
Applovin: Use AI to download for gaming companies
Aplowin today
(Upto 05:45 PM)
- 52-week range
- $37.40
▼
$417.64
- P/E ratio
- 104.49
- Price target
- $310.71
aplowin NASDAQ: App Uses AI to help mobile game developers maximize the effectiveness of their ad spend. This helps them figure out the best places to advertise that will translate into the maximum amount of people downloading their game. It also seems to attract people who will make purchases within these games. These app developers are willing to pay a pretty penny to use Applovin’s software. Aplowin’s sales growth has been greater than 60% in each of the last five quarters compared to the prior-year quarter.
Aplovin stock forecast today
$310.71
-9.89% declinebuy medium
Based on 19 analyst ratings
| High forecast | $480.00 |
|---|---|
| Average forecast | $310.71 |
| Less predictable | $66.00 |
The company is seeing each customer pay more, with average monthly revenue rising 13% from each last quarter. Aplowin’s adjusted earnings before interest, taxes, amortization, and depreciation (EBITDA) is growing significantly faster than its revenue, indicating strong margin expansion.
In 2025 and beyond, Applovin is targeting other industries that can help with its technology. This includes the e-commerce industry, which it already includes. This represents a huge opportunity. Despite a 478% return in 2024 by the end of December 17, analysts still see significant room to work. The average of the four price targets issued in December indicates a 36% gain in shares.
Trade Desk: Connected TV Focus is a difference
Trade Desk Today
(Upto 05:45 PM)
- 52-week range
- $61.47
▼
$141.53
- P/E ratio
- 199.46
- Price target
- $127.07
Business desk NASDAQ: TTD is another player making waves in the advertising space. The company operates an ad-buying platform that helps ad agencies and advertisers decide optimal places to spend. The company’s expertise spans a wide range of advertising channels. This includes video and music streaming platforms, websites, digital billboards and social media. The company’s Koa AI engine helps recommend the best ad placements and optimize clients’ available budgets.
Trade desk stock forecast today
$127.07
Up 4.44%buy medium
Based on 30 analyst ratings
| High forecast | $155.00 |
|---|---|
| Average forecast | $127.07 |
| Less predictable | $57.00 |
The company’s revenue growth continues to be strong. Sales growth over the prior year quarter has been above 20% in every quarter since Q3 2020. Spending on the trading desk’s platform is highly diversified by industry. This contributes to stability in the company’s revenue.
The company’s strong focus on connected TV and streaming ad placement is a growth driver that could increase its value. The company claims that Funding the future of streaming services Advertising is targeted. of Netflix NASDAQ: NFLX The introduction of an ad-supported tier supports this idea. Analysts project revenue from streaming services to continue to take market share from traditional TV, growing at a rate of 20% in 2025.
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