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