 Definition The digital advertising theme consists of companies that sell, buy or manage advertising spaces on digital mediums such as mobile phones, in-apps, video, audio, written content, and any other emerging digital channels. It also includes companies that make the buying and selling process automated, more efficient, and easier through data, analytics, or software development. Sources Market Size According to ARK Invest, by the end of 2021, global digital advertising totaled $440 billion, which is 62% of the total advertising market, and it is expected to grow at an 11% compounded annual rate in the next eight years to $1 trillion by the end of 2029. Source Drivers of Growth
Trends to Watch Privacy Concerns:
Privacy Solutions: The important question is whether consumers' concerns and regulators and device-makers responses through the elimination of the 3rd party cookies and limiting cross-app tracking are barriers to digital advertisement growth in the coming years. Companies such as The Trade Desk have developed new solutions, and companies such as Alphabet are tweaking their approach, and consumers may still voluntarily provide access to their information.
Blockchain and Advertising: There are two advantages to the blockchain platform. The first one is in its ledger structure. This means once you spend money online, everyone in the network knows that money is being spent. So, advertising blockchain can create more transparency on buying which ad inventory. But a more exciting aspect is the ability to reward users for the advertisements they see through tokens and enable them to share their profile and information only with companies and ad providers they like. Assuming it is pretty easy for a user to set up an identity and decide what to share and with whom to share, the platform can reward the user for watching or interacting with specific ads with tokens. There is a blockchain project called Brave that plans to achieve something similar, and it would be interesting to track its progress. Source. Stock Card Digital Advertising ThemeWhat's Included: There are several sub-segments in the digital advertising market. Traditionally, market research companies divide the industry based on the medium. For example, mobile and social advertising are two of the most common subsegments of the overall market. However, at Stock Card, we focus on the ways stock market investors would prefer to divide the market and invest in them. As such, we created the following sub-segments:
What's Excluded: The world of digital advertising is wide and ever-expanding. Naturally, some companies could still be a part of the theme, but either there aren't too many of them, or their focus is too arrow or adjacent to the core digital advertising activities that we exclude from the list.
Theme Creation & Refresh MethodologyTo create and refresh Stock Card's Digital Advertising theme, we followed a few steps:
How To Use ItUse the search bar on StockCard's website to look for and access Stock Card's digital advertising theme and its subsegment.  You can also use those themes to create a digital advertising Screener of stocks or ETFs that meet your additional fundamental or technical filters.   OUR PARTNER PAUL ESSEN CELEBRATES 3 YEARS OF HIS PORTFOLIO5 tips from Paul about investing for long-term growth Our portfolio creator Paul Essen is ringing in 3 YEARS of the Freedom Portfolio, updated on Stock Card! Like any sensible investor, he isn’t breaking a sweat when his stocks go through a rough patch. Here are 5️⃣ gems he shared from his journey! 1️⃣ Paul sticks to his guns. He is open and transparent about these past few quarters underperforming because he has 20 years of experience that keeps him level-headed when his long-term plays aren’t going up 100% of the time.👀 2️⃣ With the rapid growth that boosted his Freedom Portfolio throughout 2020, this slowdown in growth doesn’t shake his confidence. A focus on diversification while shooting for innovative and disruptive companies is essential! 3️⃣ Forward-thinking companies can make all the difference, but you might not know when that difference is coming! His Square (SQ) stock traded flat for over a year until it suddenly exploded at the onset of the pandemic and the increase of cash app payments. 4️⃣ You should always revisit and review your portfolio. Paul is reconsidering the strength of some key stocks. For example, Disney (DIS) has nearly doubled in his portfolio but has underperformed the S&P, possibly due to the streaming war, parks, or other factors. 5️⃣ According to Paul, the underlying theme of his changes this quarter was concentration. In other words, trimming off the losers dragging him down and beefing up his more successful positions. You can read his full quarterly review here on his site: https://paulvsthemarket.com/the-freedom-portfolio-october-2021/   WHY MASTERCARD IS SO DOMINANT5 tips from our partners' analysis of this payment processing industry leader When inflation surges, this dominant payment processing stock will come out on top! Mastercard (MS) is up more than 8000% since it went public! Our partners Brian Feroldi and Brian Stoffel dug into the stock to see if it was worth a buy. Here are 5️⃣ gems they shared! 1️⃣ #MS operates one of the largest payment processing networks in the world! It is the middle man between consumers and merchants, keeping the movement of money quick and painless.👀 2️⃣ Mastercard is using the massive amount of data it has gathered to generate another lucrative stream of revenue by offering subscription offerings like cybersecurity and identity verification services. This optionality is valuable! 3️⃣ The nature of the Mastercards payment processing services add to its “network effect.” The more merchants use #MS, the more consumers do as well. The companies and individuals that use #MS find it inconvenient to switch afterward. 4️⃣ The company has management that is shooting to expand its optionality by expanding its share of the market with merchants, extending its service to benefit consumers, embracing new networks in banking, digital identity, and more. 5️⃣ While it is losing some ground in terms of competitive advantage because of other companies like Visa, the stock still landed well in the “investable” range for Brian and Brian’s ratings. Check out their full analysis!  2021 LESSONS FOR 2022 INVESTINGJoseph Hogue shared his lessons learned from this year, and how it's changing his strategy Joseph Hogue’s Bowtie Nation portfolio on Stock Card is up over 25% this year! Here’s a thread of 5️⃣ tips he shared as he covered his best and worst picks this year, as well as some advice for 2022: 1️⃣ Peter Lynch said “Invest in what you know…” and this principle has guided Joseph’s investing strategy by reminding him to do diligent research on the ins and out of an industry before entering a long-term position. 👀 2️⃣ Doing your homework on a stock means you can notice trends or signs of mispricing ahead of the curve! Investing against the market is where you can make the largest gains, but requires the most insight. 3️⃣ 20 or 30 stocks is the sweet spot for the number of individual stocks you hold in your portfolio. If you add too many, it becomes increasingly difficult to keep a close enough eye on each to time your sell. 🔎 4️⃣ We’re not going to give away his best picks, you have to check out the portfolio to see that! Some of Joseph’s tough losses were from companies like Clorox that were the early victims of pandemic woes and inflation. 5️⃣ Using a “big picture view” to begin narrowing down your list of potential stocks can bring you a stronger portfolio because even if you don’t pick the perfect company, you can still be riding the trends! Check out his video here:  5 TIPS FOR BUYING GROWTH RETAIL STOCKSOur partner Leo Rodriguez broke down which companies are going to see growth this November The pandemic stole Black Friday last year, but it’s back and could be bigger than ever! What stocks should you load up on before the spending spree? Our partner Leo Rodriguez analyzed his top picks on his channel. Here are 5️⃣ tips he shared! 1️⃣ Leo referenced some predictions made by experts for this year’s Black Friday: supply chain shortages, online sales overtaking in-store purchases, negative effects from staff shortages, and higher use of buy-now, pay-later. 👀 2️⃣ TJ Maxx is likely to be a big winner this holiday season. Leo used Stock Card to show that #TJX stock is currently fairly priced, if not a little undervalued. This boost to sales could cause a significant jump in value. 3️⃣ The rise of buy-now, pay-later has allowed people to buy larger and pricier items and handle them easier financially. This means that higher revenues from luxury-oriented items could be expected from many chains. 4️⃣ These retail stocks aren’t just short-term plays for the rest of the year. Stock Card’s growth potential ratings show us that the apparel retail industry is poised for even more growth: at least 5% by 2025! 5️⃣ This shopping season could be bigger than anyone expects! In-store shopping is back, and with it comes relaxed mandates. If you are looking for more retailers to add to your portfolio, check out the rest of his picks here: |
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