10 Worst Marketing Stocks to Buy

3. National CineMedia, Inc. (NASDAQ:NCMI)

Short % of Float: 6.1

No. of Hedge Funds as of Q2 2024: 12

National CineMedia (NASDAQ:NCMI) is a media company that operates in the American cinema advertising sector. It boasts 18,400 screens in more than 14,400 theaters in 190 Designated Market Areas nationwide. The company presents several formats of The Noovie Show, depending upon its theatre circuit of operation. This includes Post-Showtime advertising inventory after the advertised showtime, and the selling of advertising on its LEN, a series of screens in movie theatre lobbies.

National CineMedia’s (NASDAQ:NCMI) platform also manages other kinds of advertisements and promotions in theatre lobbies. These include digital online advertisements managed through its Audience Accelerator, which functions across several Noovie complementary out-of-home venues, such as restaurants, convenience stores, and even college campuses. It also functions across Noovie digital properties.

The company shows positive consumer engagement trends, with the cinema industry thriving in 2024 and the box office landing $1.9 billion. The company managed to reach its primary target audience, comprising Millenials and Gen Z, who accounted for nearly 70% of its total viewership in Q2. This translates to around 30 million individuals. National CineMedia (NYSE:NCMI) added 11 new advertisers with significant major cinema advertising campaigns year-to-date. In addition, its platinum advertising offering in Q2 fiscal 2024 made the quarter its second-best quarter ever, standing right behind Q4 2019.

Its sales also increased by more than 15 times in the Q2 fiscal 2024 as compared to the same period in 2023, highlighting the company’s strong profitability model. Public interest in this exclusive offering is continuing to grow, with advertisers from several premier categories planning to include their campaigns in the coming quarter. These categories include entertainment, government, and dining. In addition, an increasing interest in experiential marketing is also driving demand and opening up new opportunities for the company.