In this article, we will discuss the 15 Best Advertising Stocks to Buy According to Hedge Funds.
Ad spending in 2024 received a significant boost from recurring events such as the US election and the Olympics, and experts believe that these spending patterns are likely to add billions to the market. Media agency Magna increased its US ad spending forecast for the year, expecting revenue growth of 11.4% to $377 billion, per the news shared with Marketing Dive. The company expects non-cyclical ad spending to grow by 8.9%, reflecting a rise from 8.2% in previous forecasts. This marks one of the best performances for the category in 20 years. This revision stemmed from improved macroeconomic conditions, healthy appetites in digital and streaming, and cyclical events, such as the elections and the Summer Olympics.
Advertising To Top US$1 trillion in 2026, Says PwC
As per PwC, fueling revenue growth by selling E&M products directly to users is challenging. Of the 3 major categories i.e., consumer spending, connectivity, and advertising, consumer spending is the smallest and slowest growing. The connectivity category i.e., fixed and mobile services, topped US$1.1 trillion in 2023. Advertising outpaced consumer spending in 2023 and should top US$1 trillion in 2026. PwC believes that it is expected to grow at a 6.7% CAGR through 2028.
With advertising expected to make up ~55% of total E&M industry growth over the upcoming 5 years, PwC believes that it will become a more important part of companies’ business models. For strategic reasons, all participants in the E&M industry are required to be more skillful at selling ads.
According to PwC, the changes to the way businesses approach the ad business are expected to be seen in 3 key areas. Firstly, the monetization of data is expected to fuel more sophisticated advertising models. Next, the connection will be closer between the discovery of products and services and their purchase and consumption. Finally, it will be important for companies to understand how global privacy regulations impact growth.
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Trends To Watch Out for in 2025
As per Mediatool, key advertising trends to look out for include an emphasis on authenticity, visual content domination, integration of AI, mobile-centric campaigns, and growth of social commerce. AI/ML has become important in the world of digital advertising. As of now, 32% of marketers leverage AI for creating, managing, and optimizing their ads. According to Market.us, the global AI in advertising market is expected to reach $28.4 billion in the year 2033 with a CAGR of 28.4%. This was valued at $6.7 billion in the year 2023. Based on the application, targeted advertising dominated the broader market with a share of 31.1% in 2023.
With the expectations of strong growth, let us now have a look at the 15 Best Advertising Stocks to Buy According to Hedge Funds.
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Our Methodology
To list the 15 Best Advertising Stocks to Buy According to Hedge Funds, we used a screener and sifted through several online rankings. After getting the initial list of 25-28 stocks, we selected the ones having high hedge fund holdings. Finally, the stocks were ranked in ascending order of their hedge fund sentiment, as of Q3 2024.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
15) Thumzup Media Corporation (NASDAQ:TZUP)
Number of Hedge Fund Holders: N/A
Thumzup Media Corporation (NASDAQ:TZUP) specializes in social media branding and programmatic marketing solutions.
Thumzup Media Corporation (NASDAQ:TZUP) has announced its plans to collaborate with X Corp. (formerly Twitter) to integrate its advertising technology platform. The partnership will utilize X Corp.’s extensive user base to expand Thumzup Media Corporation (NASDAQ:TZUP)’s reach and influence in digital advertising. The integration, which is anticipated to be completed by the end of January 2025, is a strategic move by Thumzup Media Corporation (NASDAQ:TZUP) to capitalize on the growing global digital advertising market, which is expected to grow at a CAGR of 15.5% from 2023 to 2030 (as per Grand View Research). The market was valued at US$365.37 billion in 2022.
Thumzup Media Corporation (NASDAQ:TZUP)’s platform provides unified campaign management and enhanced audience targeting. The company now plans to expand its services to additional social media networks. Given X Corp.’s more open nature, Thumzup Media Corporation (NASDAQ:TZUP) plans to explore new advertising content types and strategies. This will help increase innovation and audience engagement.
Apart from this integration, Wall Street analysts remain optimistic about the company’s ad-tech platform, which has now attracted more than 500 advertisers. This demonstrates a strong 202% growth since the beginning of the year. Since 1st January 2024, Thumzup Media Corporation (NASDAQ:TZUP) has grown from 183 advertisers to 554 as of October 31, 2024, highlighting the platform’s strong appeal throughout different business sectors. As per Wall Street, the shares of Thumzup Media Corporation (NASDAQ:TZUP) have an average price target of $7.10.
14) Fluent, Inc. (NASDAQ:FLNT)
Number of Hedge Fund Holders: 1
Fluent, Inc. (NASDAQ:FLNT) offers data-driven digital marketing services in the US and internationally. The company’s Commerce Media Solutions focuses on enhancing digital advertising through the use of first-party data. Commerce Media Solutions has grown significantly, posting a 341% YoY revenue increase in Q3 2024 and now makes up 16% of Fluent, Inc. (NASDAQ:FLNT)’s total revenue. Its services cater to high-volume verticals including retail, quick-service restaurants, and ticketing, providing advertisers with tools to enhance digital media investments.
Wall Street analysts opine that Fluent, Inc. (NASDAQ:FLNT)’s strategic pivot towards Commerce Media Solutions exhibits the growing importance of this market, which is projected to account for more than 25% of digital ad spending by 2026 (as per BCG estimates). The company’s solutions have been designed to enhance customer acquisition and partner monetization, providing differentiated offerings in the digital advertising landscape.
Fluent, Inc. (NASDAQ:FLNT) also remains optimistic about the introduction of a new Loyalty Solution. The new Loyalty Solution integrates advanced retail media strategies with a focus on enhancing customer engagement and retention. This solution emphasizes delivering personalized, post-purchase offers based on consumer behavior and preferences. As per Wall Street analysts, the shares of the company have an average price target of $4.00.
13) iClick Interactive Asia Group Limited (NASDAQ:ICLK)
Number of Hedge Fund Holders: 1
iClick Interactive Asia Group Limited (NASDAQ:ICLK) is a data-driven digital marketing and enterprise solutions provider. It focuses on connecting global brands with Chinese audiences. The company’s services include solutions for digital advertising, customer relationship management, and data analytics.
A series of favorable developments led to a significant increase of more than 350% over the past 6 months in iClick Interactive Asia Group Limited (NASDAQ:ICLK)’s stock price. To begin with, the company announced a merger with Amber Group’s digital wealth management subsidiary, Amber DWM. This deal valued Amber DWM at $360 million. Wall Street believes that this strategic move should enhance iClick Interactive Asia Group Limited (NASDAQ:ICLK)’s market presence and diversify its offerings, creating new growth opportunities.
Next, the sale of its mainland China demand-side marketing solutions business is expected to create long-term opportunities for iClick Interactive Asia Group Limited (NASDAQ:ICLK). This strategic disposal allows the company to focus on higher-margin, lower-risk operations, which has reassured investors about a streamlined and strategic business focus.
The strategic move is expected to enhance iClick Interactive Asia Group Limited (NASDAQ:ICLK)’s liquidity and profitability by focusing on more efficient areas. Furthermore, the company remains committed to repaying outstanding loans, totaling ~US$35 million, previously extended by 3 banks to the disposed business. This repayment is expected to take place within 6 months of the agreement’s execution.