As the coronavirus epidemic spread from nation to nation and continent to continent, people were encouraged and eventually legally forced to live in lockdowns. Outdoor activities fell as the year progressed, but internet user engagement climbed significantly in an already technologically obsessed age. What else has risen? The global need for precise virtual advertising technology and the capacity to reach out to specific audiences.
This tendency was evident in the stock market, with technology stocks soaring while almost every other industry plummeted. This, together with the ‘work from home’ mandate, resulted further in the reinvention of business models all across the globe.
This trend is still in its early stages, but business development is increasingly focused on digital campaigns. As a result, there are still attractive investment prospects in this industry.
4 Canadian Ad-Tech Stocks You Should Invest In
Here are 4 Ad-Tech stocks with the most promising growth potential for Canadian investors who want to get ahead of the curve.
Zoomd Technologies Ltd. (TSXV:ZOMD)
Zoomd was founded in 2012 by Amit Bohensky, Ofer Eitan, Omri Argaman, and Niv Sharoni, a group of Israeli businessmen and mobile technology and marketing experts, and listed on the TSX Venture Exchange in September 2019. It provides a search engine to publishers and a mobile app user-acquisition platform connected with the bulk of global digital media to advertisers.
The platform combines over 600 media sources into a single dashboard providing marketers with a user acquisition control center to manage all new customer acquisition efforts on a single platform. Zoomd saves marketers enormous resources that they would otherwise spend aggregating data sources by integrating all of these media sources into a single platform, boosting data collecting and data insights while minimizing the resources spent on the process.
Zoomd actively collaborates with Google Ads, Quora, Reddit, Apple Search Ads, Verizon Media, and other leading worldwide social media platforms and publishers and device manufacturers and operators, including Samsung, Microsoft, Amazon, and Adobe. Zoomd’s structured and systematic platform, according to the business, attracts over half a billion daily events across 600 media channels and sources.
Zoomd currently holds a market capitalization of 49,727,960 and is growing at a breakneck speed. So despite it being a penny stock, trading at a stock price of $0.52, the long-term prospects of this ad-tech company seem bright.
Magnite Inc. (NASDAQ:MGNI)
Magnite is the world’s biggest autonomous sell-side marketing platform that combines the algorithmic skills of Rubicon Project with Telaria’s competence in CTV. Publishers use its system to monetize their content across all devices and formats, including CTV, internet video, display, and audio. In addition, the firm offers a technological solution for automating the buying and selling of digital advertising inventory, enabling clients to access brand-safe, high-quality ad inventory and complete billions of advertising transactions.
Magnite has offices in North America, EMEA, LATAM, and APAC, with headquarters in busy New York City, sunny Los Angeles, mile-high Denver, ancient London, and down under in Sydney. It has a total market capitalization of 1,301,953,161.
The most recent acquisition of SpotX, a framework for CTV and advertising from RTL Group, increased Magnite’s overall CTV income to two-thirds of the total in the last months of 2020. In addition, with the merger of Magnite and SpotX, certain high-profile clients, like Disney’s Hulu, Roku, ViacomCBS, and fuboTV, shifted to Magnite for their marketing and advertising needs.
Many American homes are abandoning cable and satellite TV and preferring to connect their televisions directly to the internet. As a result, advertisers should anticipate their expenditure to transfer to platforms like Magnite and SpotX as watching patterns change, making it a lucrative investment opportunity.
PubMatic Inc. (NASDAQ:PUBM)
PubMatic is an innovative technology firm that maximizes client value by supplying the future supply chain for digital advertising. The sell-side platform of PubMatic offers a customized cloud infrastructure platform that allows for real-time algorithmic advertising operations. As a result, even the world’s largest digital content providers can govern access to their inventory and boost monetization by enabling advertisers to drive return on investment and target targeted audiences across ad formats and devices.
Since 2006, PubMatic’s infrastructure-driven methodology has enabled effective real-time data processing and use. PubMatic increases consumer results while advocating a robust and transparent digital advertising supply chain by providing scalable and flexible programmatic innovation without sacrificing the user experience. The platform enables entrepreneurial app owners and developers to manage and grow their digital advertising businesses.
PubMatic runs an ad network that handles around 134 billion impressions each day. It is multichannel, supporting both web and mobile devices. There are already roughly 1,100 publishers and app developers on the platform, including major corporations such as Verizon (NYSE: VZ). PubMatic has a billion-dollar market cap of 1,125,821,341. Although the current share price is at $21.63, the P/E ratio stands at 21.40, hinting at the stability of this Canadian tech stock.
The Trade Desk Inc. (NASDAQ:TTD)
The Trade Desk Inc operates a technological platform for ad purchasers. Ad buyers may use its cloud-based platform to develop, monitor, and analyze data-driven digital marketing campaigns across a multitude of ad formats and channels, including display, video, audio, in-app, native, and social, on a variety of devices. Data Management Platform, Cross-Device Targeting, Video Advertising, Mobile Advertising, and other solutions are among its offerings.
The firm is one of the world’s largest autonomous demand-side platforms (DSPs), employing 1,967 employees across the globe. It offers marketers real-time ad pricing and placement. Furthermore, Trade Desk’s service software platform functions as a conduit for data, inventory, and publisher partners.
Unlike some other advertising firms, the Trade Desk solely works with ad purchasers. Although it does not have its own content platforms, it has created a reputation for openness, creating excellent client connections. As a result, the Trade Desk is the third most popular DSP, trailing only tech heavyweights Amazon and Google. In addition, it holds a total market capitalization of 23,776,392,801, leading the stock market as an e-commerce company.
Why You Should Invest in Ad-Tech Stocks in Canada
The multibillion-dollar giants such as Google (Alphabet Inc.) and Facebook have their business models based solely on targeted ad campaigns. It is enough to understand that the ad-tech industry can easily be a cash cow.
Targeted advertising has shown to be quite effective in reaching its target groups. According to eMarketer, marketers spend more than $70 billion each year on TV, whereas CTV advertising accounts for just 10% of TV ad spending. Top ad tech firms like Roku (NASDAQ: ROKU) will take more and more of the $70 billion pie as CTV continues to phase off the cable. Without a doubt, it is the future of the advertising technology industry.
The Bottom Line
Ad-Tech has shown strong growth in recent years. The exceptional revenue growth of this sector is attracting the attention of bigger investors. Consequently, it occupies more and more of the market share, making it the optimum time to enter this industry.
Canadian Advertising Technology (Ad Tech) Stocks
The company’s share price has risen 156% over the past five years (including dividends), and it is essential to note that Enghouse is constantly working in a pandemic. The company said its second-quarter revenue grew 18% year-over-year, and its market capitalization is $ 4.87 billion. Aritzia shares have doubled since its IPO in 2016 and are valued at a market capitalization of $ 4.4 billion.
It managed to increase revenues in the second, third and fourth quarters of 2020, improving performance by 12%, 12% and 20% over the same period last year and also reported that revenues were $ 118.1 million for the second quarter of 2021, up 24% from the $ 95.6 million recorded in the second quarter of 2020.
The company is expected to increase adolescents’ revenue and profits over the next couple of years. Although, despite an impressive performance in recent years, the company has one of the lowest expected growth rates on this list, shares that have traded about 10.5 times their 12-month sales look like long-term value as they continue to post double-digit percentage growth in revenue thanks to their leading position as a software technician.
The share price of PubMatics has nearly doubled since its debut on December 9 on Nasdaq, and ad technology providers have a market capitalization of $ 2.2 billion. It is understood that management tried to soften expectations about the company’s first quarterly earnings report and shares in Pubmatics rose 22% the day after the publication of the profit.
As you can see, the absence of Tech companies listed on TSX has negatively impacted the overall performance of Canadian markets. As a result, the market for Canadian tech companies is experiencing a particular setback. One explanation is that the stock market doesn’t have much to do with the economy.
Although the most famous companies are such giants as Apple Inc. (AAPL) and Microsoft Inc. (MSFT), tech companies are classified as penny stocks: Companies listed on our list include small-cap companies on Canadian exchanges and larger Canadian companies on US exchanges.
Trade Desk, Inc. is a technology company that provides a self-service platform that allows customers to purchase and manage digital advertising campaigns in various ad formats, including display, video and social media, and across multiple devices, including computers, mobile devices, and connected TV. Rocket Fuel Inc. is a technology company that provides digital media solutions that enable advertisers to communicate with their audience through online ads, videos, social and mobile campaigns.
Tremor Video, Inc. is an advertising technology company that offers software to improve the effectiveness of video ads. Sharethrough Inc is a Canadian omnichannel and unbundled advertising exchange poised to enter equity markets using its traditional Initial Public Offering (IPO) path.
The company was founded by Amit Bohensky, Ofer Eitan, Omri Argaman and Niv Sharoni, a joint team of Israeli entrepreneurs, marketing and mobile technology professionals. Zoomd has launched a SaaS platform at full speed, allowing advertisers and publishers to design and build their digital marketing campaigns to improve the usability and efficiency of the Coronavirus Year.
Open Texts ended the first quarter (Q1) of the company on June 30, 2021, and reports showed $ 56.5 million of transaction revenue, up 453% over the same period in 2020.
AcuityAds, a small Canadian advertising technology provider, declined 3% year-on-year to $ 26.1 million in its latest quarter, but inventories increased nearly 1,000% at the end of 2020. As a result, Canadian tech stocks have remained relatively undetectable but have solid potential to grow your investment over time.
Here are the top five technology companies on TSX Venture 50: Loop Insights is an IoT technology company with its own Artificial Intelligence (AI) platform. Technology companies can also provide information technology services such as cloud computing.
We only include companies that generate most of their revenues from ad technology and related services. For example, walled Gardens are excluded even though they have significant advertising technology business2. Finally, proprietary technologies should primarily drive gains, such as licensing that technology and any services associated with its management. They are mainly generated from services related to the use of third-party technologies.
Companies required a market capitalization of over C $ 5 million, a closing price of C $ 0.25 at the end of 2020, and a minimum closing price of 0.10 to make the list of the best / best tech stocks for 2021. Canadian dollars, starting from the last day of 2019. Companies that met these criteria were then ranked using a weighted formula that takes stock price changes, trading volume and market capitalization into account.
Investors looking for the best tech stocks should look out for the TSX Venture 50. The AdProfs AdTech Index (TM) is designed to track the stock performance of publicly traded advertising software and services companies.
In the digital era, highly effective marketing technologies are critical to gaining access to and engaging Internet users worldwide. The challenge for effective marketers is to generate leads, conversions and revenue from their marketing money and have every chance to increase profits much quicker than profits.