The $1 Trillion Ad Opportunity

Motley Fool Money

The Motley Fool

Business, Investing

4.4 • 3K Ratings

🗓️ 9 December 2024

⏱️ 31 minutes

🔗️ Recording | iTunes | RSS

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Summary

Global advertising spend is growing faster than expected and beginning to eat into other ways businesses have historically put budget to use – who are the unexpected winners? (00:14) David Meier and Dylan Lewis discuss: - The global ad market eclipsing $1T in 2024, what’s driving the spend, and the lesser known stocks to watch in the industry. - Reddit’s new “Reddit Answers” tool, the company’s latest foray into AI, and how the online community continues to lead publishers in AI efforts. - How the market continues to give investors a discount on small caps, and why one ETF might be better than another for exposure. (17:41) Analyst Asit Sharma joins Mary Long for a look at LVMH’s Bernard Arnault and what he shares with Warren Buffett Companies discussed: GOOG, GOOGL, META, AMZN, CART, TTD, IAS, RDDT, IJR Host: Dylan Lewis Guests: David Meier, Asit Sharma, Mary Long Producer: Ricky Mulvey Engineers: Rick Engdahl Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	The advertising market hits 12 zeros. Motleyful money starts now.
0:13.7	I'm Dylan Lewis, and I'm joined over the airwaves by Motleyful analyst David Meyer.
0:17.3	David, thanks for joining me. Thanks for having me.
0:20.3	Today we're going to be checking in on the ad market.
0:22.9	We're going to be looking at a corner of the stock market that you've been paying attention
0:25.5	to and also looking at Reddit's AI ambitions.
0:30.0	Let's start with the ad market.
0:31.6	The year is not quite over yet, but it is looking like a milestone year for advertising.
0:37.3	Ad spend worldwide, expected to pass $1 trillion in 2024, according to media investment organization, Group M.
0:44.6	And David, I feel like this time of year, a number like that isn't all that surprising,
0:48.4	given all of the holiday hats we're seeing, but it is still a massive, massive number.
0:53.2	Oh, it's enormous.
1:00.0	So I can literally remember years ago, right, when I was first starting to follow this trend, it was huge when it crossed 500 billion. And here we are with three
1:06.0	more zeros.
1:07.0	One of the amazing things is Group M, they are an organization that follows these things.
1:12.6	They're looking at media investment.
1:13.9	They had originally predicted this would happen in 2026, revised it to 2025, and then revised
1:19.6	it to 2024.
1:21.0	So they have seen an acceleration on that spend.
1:22.8	I have to imagine that that means that advertisers are seeing a return on their spend.
1:32.3	Always, because that is literally the only reason that you do advertise. You wouldn't keep doing something if you were just going to keep losing money at it.
1:36.3	So yes, you know, digital, especially as you continue to move from analog, which are still out there,
	...

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