Markets

Advertising Industry: Investing Essentials

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If you want to understand how pervasive advertising is these days, you needn't do much more than open your eyes and look around. Whether it be on your television or computer, billboards, the radio, park benches, or perhaps the T-shirt you're wearing, advertisements are everywhere.

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The role that content mediums play is constantly evolving and providing advertisers with a number of markets and content mediums that are largely untapped, representing an impressive growth opportunity and industry catalyst.

The largest online advertisers in the world are still in their infancy with regard to understanding how to monetize their mobile advertising platforms. In addition, higher-growth emerging market regions where content is sparse (i.e., where there is little access to Internet or television) presents a multi-decade growth opportunity for advertising expansion.

Perhaps the biggest headwind for advertisers is the sheer cost of innovation: The landscape of advertising is never static. The costs for billboard operators to transition from poster billboards to digital billboards and the adoption of mobile advertising platforms are two examples of the high costs associated with the industry that have the potential to weigh on profits.

In addition to Interpublic, noted above, three other notable pure-play companies you can invest in within the advertising space are Lamar Advertising , Omnicom Group , and CBS Outdoor Americas .

Beyond pure-play advertisers, investors can also gain partial exposure to the sector through content providers such as Google . Google is the dominant player in the PC-advertising market, though Google is by no means wholly reliant on pure advertising revenue for its survival.

The article Advertising Industry: Investing Essentials originally appeared on Fool.com.

Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong , track every pick he makes under the screen name TrackUltraLong , and check him out on Twitter, where he goes by the handle @TMFUltraLong .The Motley Fool owns shares of, and recommends Google (A shares) and Google (C shares). Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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