With rising demand for online marketplaces, companies have been increasing their digital footprints. The trend is also driving an increased focus on digital marketing. As a result, we think Adobe (NASDAQ:ADBE), América Móvil (AMX), Interpublic Group (IPG), and TEGNA (NYSE:TGNA), which facilitate digital marketing, could be big winners. Let’s look closer at these names.Digital advertising has been gaining traction since the onset of the COVID-19 pandemic last year because businesses have been focusing on establishing or increasing their digital presence. The rapid transformation from traditional advertising to digital marketing has caught the attention of investors worldwide. This is evidenced by iShares Evolved U.S. Media and Entertainment ETF’s (IEME) 60.9% returns over the past year versus SPDR S&P 500 ETF Trust’s (SPY) 45.1% gains.
Businesses will likely invest heavily in digital marketing platforms in the future as online shopping becomes the preferred option over traditional brick-and-mortar stores. This s why the global digital marketing market is expected to grow at a 17.6% CAGR over the next five years to reach $807 billion by 2026.
Given the industry’s solid growth prospects, we think digital marketing facilitators Adobe Inc. (ADBE), América Móvil, S.A.B. de C.V. (AMX), The Interpublic Group of Companies, Inc. (NYSE:IPG), and TEGNA Inc. (TGNA) have the potential to deliver solid returns this year.