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Motley Fool Hidden Gems Investing

Digital Ad Spending and the Power of Weird

Motley Fool Hidden Gems Investing

The Motley Fool

Business, Investing

4.33.1K Ratings

🗓️ 26 June 2020

⏱️ 39 minutes

🧾️ Download transcript

Summary

Google deals with slipping ad sales while Facebook and Amazon gain market share. Amazon buys a new car. McCormick hits a new high. Nike stumbles. And Microsoft pulls the plug on its stores. Motley Fool analysts Andy Cross and Jason Moser discuss those stories and weigh in on the latest from Albertson’s, Chuck E. Cheese, and Darden Restaurants. The guys share two stocks on their radar: Etsy and Houlihan Lokey. Plus, Atlantic writer Olga Khazan shares some insights from her book, Weird: The Power of Being an Outsider in an Insider World. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Everybody needs money. That's why they call it money.

0:07.0

From full global headquarters, this is Motley Fool Money.

0:19.0

It's the Motley Fool Money Radio Show. I'm Chris Hill joining me this week. Andy Cross and Jason Moser. Good to see you guys.

0:25.0

Hey, Chris. We've got the latest headlines from Wall Street. Author Olga Kazan is our guest.

0:31.0

And as always, we've got a couple of stocks on our radar. But we begin with the digital ad wars.

0:37.0

Last year, Google, Facebook and Amazon took in more than 60% of all digital ad spending in the US.

0:44.0

But this year, Google is expected to see a drop in its ad revenue for the first time in more than a decade.

0:51.0

This is according to a report by E-Marketer, a research firm that's been tracking ad spending since 2008.

0:58.0

And Jason, I'll just start with you. Google's expected to bounce back in 2021.

1:03.0

But in the near term, they are giving up market share to their two biggest competitors.

1:08.0

Yeah, I mean, that's certainly a projection. I mean, now, if that actually ends up being the case, I mean, I guess we have to wait and see there.

1:16.0

It does make sense to a degree, though. I mean, when you're the king of the hill for so long, I mean, you kind of, unfortunately, have nowhere to go but down at some point or another.

1:26.0

And this has obviously been a unique circumstance for all advertisers.

1:31.0

I think it was interesting that this projection was made taking into consideration the challenge that Facebook is dealing with right now in this growing boycott of Facebook platforms,

1:44.0

which is based on what they're allowing on their platform and fact checking and whatnot.

1:50.0

We're seeing more brands step up and actually, you know, join this boycott of advertising on Facebook platforms.

1:56.0

Now, how long that ultimately lasts as anyone's guess? I mean, I suspect at some point or another, you know, listen, money talks, right?

2:03.0

So it probably will dictate some of Facebook's policy going forward.

2:07.0

But I think you do make a good point there. Longer haul. I mean, this is something that Google will, this is not something that's indicative of a dwindling platform or platform losing relevance.

2:18.0

Let's remember they have nine different platforms, nine different services that have one billion or more users each.

2:26.0

And given the utility of all of the services that Google and alpha that offer, I tend to feel like that's going to help them come through this relatively unscathed.

2:36.0

But in the near term, there are some question marks no doubt. And Chris, I think this is, this is points a little bit to where Google, the types of clients that Google uses and alphabet uses across their platform.

...

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