The advertising space was relatively unhinged over the past year, given the surging popularity of online advertising in lieu of traditional advertising. But, because the rapid digital transformation is leading to increased digital ad spending, we think Criteo S.A. (CRTO) and QuinStreet (QNST) should gain substantially in the near term. Read on.Online advertising is steadily replacing traditional advertising amid a fast-paced digital transformation. Global ad spending is expected to increase 14% from its year-ago value to hit $657 billion in 2021. With increased consumer spending, companies are acknowledging the need now for aggressive advertising and marketing to attract and hold customers in an increasingly competitive business universe.
Worldwide advertising revenue is expected to jump 19% to $749 billion in 2021.
Given the expected increase in ad spending, Criteo S.A. (CRTO) and QuinStreet, Inc. (QNST) should witness substantial improvement in their financials and profit margins in the near terms. So, we think these two stocks could be solid additions to one’s portfolio now.