December 31, 2024

Innovative Digital Advertising Stocks to Keep an Eye On as the Industry Grows

Real Internet Sales

Real Internet Sales is a digital marketing agency located in Columbia, South Carolina. We specialize in website design and development, SEO, social media management, online advertising, AI integration, and workflow automation. Our services also include affiliate marketing and digital strategy.

Real Internet Sales also offer specialized programming for real estate firms, using IDX and RETS feeds to automatically populate MLS properties on their websites for improved property listings and sales. We also work with clients in the restaurant, tourism, and e-commerce industries to enhance their digital presence and streamline operations.

News Summary

As the digital advertising industry is projected to grow from $410.70 billion in 2024 to $1.19 trillion by 2033, investors are keenly eyeing stocks like Thryv Holdings, The Trade Desk, and HubSpot. These companies are providing innovative digital marketing solutions tailored for businesses, showcasing impressive growth and future potential.

Innovative Digital Advertising Stocks to Keep an Eye On as the Industry Grows

The world of digital advertising is buzzing, and it’s not just the usual chatter anymore. Experts are predicting that the global digital marketing industry will skyrocket from around $410.70 billion in 2024 to a whopping $1.19 trillion by 2033. That’s a massive shift, which translates to a compound annual growth rate (CAGR) of 11.2%. With such rapid growth, it’s no surprise that savvy investors are looking for reliable stocks in this space.

Thryv Holdings, Inc. (THRY): A Focus on Small-to-Medium Businesses

One company that stands out is Thryv Holdings, Inc. (THRY). Thryv specializes in offering a suite of digital marketing solutions and cloud-based tools tailored specifically for small-to-medium businesses. Their services range from customer relationship management (CRM) to search engine optimization (SEO), digital advertising, appointment scheduling, and even payment processing!

Just recently, on October 31, 2024, Thryv completed an impressive $80 million cash acquisition of Infusion Software, known as Keap, marking a significant enhancement to their software-as-a-service (SaaS) solutions. This acquisition is part of their growth strategy to further benefit their clients.

When Thryv reported its fiscal third-quarter results ending on September 30, 2024, they showed solid revenue of $179.85 million and an adjusted gross profit of $116.84 million, reflecting a healthy 5.6% increase year-over-year. Their adjusted EBITDA surged to $19.62 million, showing a remarkable 167.7% increase over last year.

Looking ahead, analysts are optimistic about Thryv’s potential. They’re projecting an impressive EPS growth of 97.9% for the fourth quarter of 2024, with revenue estimated to hit $183.02 million.

The Trade Desk, Inc. (TTD): Powering Digital Ad Campaigns

Another stock to consider is The Trade Desk, Inc. (TTD). This company has carved a niche for itself by providing a cloud-based platform that helps businesses manage their digital advertising campaigns effectively. The platform is designed to improve the performance of these campaigns, making it a favorite among marketers.

TTD’s stockholders made an important move when they approved the company’s reincorporation from Delaware to Nevada on November 14, 2024. Such changes can signify growth and adaptability in a rapidly changing industry.

In the latest quarter, TTD saw revenue growth of 27.3% year-over-year, bringing in $628.02 million. Even more impressive was their income from operations, which jumped an amazing 187.9% to $108.48 million.

Expectations for Q4 2024 are even brighter, with projected revenue growth of 25.3%, aiming for about $759.32 million. Their earnings per share (EPS) is forecasted to grow 38.6% to $0.57. Over the past year, TTD’s stock has gained 65.3%, closing at $121.67.

HubSpot, Inc. (HUBS): A Comprehensive CRM Solution

Last but not least is HubSpot, Inc. (HUBS), which is a popular choice among B2B companies. HubSpot offers a full suite of cloud-based CRM tools that cover everything from marketing to sales and customer service, making it a versatile option for mid-market businesses.

On October 30, 2024, HubSpot expanded its capabilities by acquiring Cacheflow, which has now been integrated into its Commerce Hub offering—an exciting development for its users!

For Q3 2024, HubSpot reported revenues of $669.72 million, marking a 20.1% increase year-over-year. Their non-GAAP operating income soared by 35.9% to $125.21 million, reflecting their strong performance.

As we head into the final quarter of 2024, HubSpot expects revenue to reach $673.96 million, showing a healthy 15.8% year-over-year growth. Additionally, their EPS is anticipated to grow by 24.8% to $2.20.

HubSpot’s stock has risen by 22.3% over the past year, closing at $714.96, indicating strong investor confidence in their continued success.

Final Thoughts

The digital advertising landscape is evolving rapidly, and companies like Thryv, The Trade Desk, and HubSpot are making impressive strides. As we look ahead, keeping an eye on these stocks could prove to be a wise investment strategy. With the industry forecasted to grow significantly, now may be the perfect time to explore these opportunities!