How Digital Advertising Impacts Consumer Tech Stocks?
Ads = Fuel for Free Tech
– Ad revenue powers apps, OTTs, gaming, e-commerce
– Personalized targeting = higher conversion, better margins
– Adtech is key to monetizing free users
How It Works Behind the Scenes
– Companies sell space or clicks to brands
– AI used to personalize ad delivery
– Real-time auctions and affiliate revenue common
Stocks That Thrive on Digital Ads
–
Info Edge
(Naukri, Jeevansathi) – Platform ads
–
Zomato
– Promoted listings & delivery ads
Nazara
– In-app ads via games
Risks to Track
– Privacy laws (cookie bans, data limits) hit targeting
– Ad-blockers reduce impressions
– Recession = lower brand ad spends
Investment Insights
– Track ARPU and % of revenue from ads
– Look for firms with first-party user data
– Prefer companies monetizing across multiple ad formats