Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
WARNING - AI STOCK MARKET CRASH / BEAR SWITCH TRIGGERED! - 19th Jan 22
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22
How to Profit from 2022’s Biggest Trend Reversal - 11th Jan 22
Stock Market Sentiment Speaks: Are We Ready To Drop To 4400SPX? - 11th Jan 22
What's the Role of an Affiliate Marketer? - 11th Jan 22
Essential Things To Know Before You Set Up A Limited Liability Company - 11th Jan 22
NVIDIA THE KING OF THE METAVERSE! - 10th Jan 22
Fiscal and Monetary Cliffs Have Arrived - 10th Jan 22
The Meteoric Rise of Investing in Trading Cards - 10th Jan 22
IBM The REAL Quantum Metaverse STOCK! - 9th Jan 22
WARNING Failing NVME2 M2 SSD Drives Can Prevent Systems From Booting - Corsair MP600 - 9th Jan 22
The Fed’s inflated cake and a ‘quant’ of history - 9th Jan 22
NVME M2 SSD FAILURE WARNING Signs - Corsair MP600 1tb Drive - 9th Jan 22
Meadowhall Sheffield Christmas Lights 2021 Shopping - Before the Switch on - 9th Jan 22
How Does Insurance Work In Europe? Find Out Here - 9th Jan 22
MATTERPORT (MTTR) - DIGITIZING THE REAL WORLD - METAVERSE INVESTING 2022 - 7th Jan 22
Effect of Deflation On The Gold Price - 7th Jan 22
Stock Market 2022 Requires Different Strategies For Traders/Investors - 7th Jan 22
Old Man Winter Will Stimulate Natural Gas and Heating Oil Demand - 7th Jan 22
Is The Lazy Stock Market Bull Strategy Worth Considering? - 7th Jan 22
METAVERSE - NEW LIFE FOR SONY AGEING GAMING GIANT? - 6th Jan 2022
What Elliott Waves Show for Asia Pacific Stock and Financial Markets 2022 - 6th Jan 2022
Why You Should Register Your Company - 6th Jan 2022
4 Ways to Invest in Silver for 2022 - 6th Jan 2022
UNITY (U) - Metaverse Stock Analysis Investing for 2022 and Beyond - 5th Jan 2022
Stock Market Staving Off Risk-Off - 5th Jan 2022
Gold and Silver Still Hungover After New Year’s Eve - 5th Jan 2022
S&P 500 In an Uncharted Territory, But Is Sky the Limit? - 5th Jan 2022

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Thanks to Netflix, the Biggest Advertising Revolution Has Begun

Companies / Tech Stocks Dec 21, 2019 - 06:13 PM GMT

By: Stephen_McBride

Companies

Let me tell you a secret about the world’s most powerful stocks… ones that made early investors very, very rich.

Alphabet (GOOGL)… one of the world’s most influential tech companies… has handed investors 2,000%+ gains.

Facebook (FB)... a social media dominator and the sixth-biggest company in the world... has handed investors 400%+ gains.

Amazon (AMZN)... the king of online shopping… has handed investors 10,000%+ gains.

These three stocks all have one secret trait that drove their stock prices to the moon.



It’s not that they’re tech companies. It’s that they’re advertising companies in disguise.

When you think of Facebook, Google, and Amazon… you see a social network, search engine, and online store.

But in truth, all three are in the business of amassing millions of eyeballs… which they can later sell to advertisers for hundreds of millions of dollars.

While it’s too late to get in on those stocks for quick triple-digit gains, there’s one up-and-coming advertising giant, thanks to Netflix.

There’s a good chance you have its technology in your living room… but may not know it’s quietly infiltrating the advertising industry. 

In fact, this stock has set out to flip the most expensive ad industry on its head and rake in billions in the process.

TV Is Not Dead, It’s Just Different

Remember sitting down to watch Everybody Loves Raymond at prime time on Monday nights?

For half a century, that was TV as we knew it…

But in 2007, Netflix introduced a new concept to TV: video streaming. Fast forward to today and dozens of streaming services have sprung up.

Apple launched Apple TV… Disney launched Disney+...HBO launched HBO Now… just to name a few.

More and more people started ditching cable TV for video streaming services. Last year 69% of homes in America were subscribed to a video streaming service, according to Leichtman Research Group.

But make no mistake, TV didn’t die. It just changed its format.

According to Vox, more than 70% of people watch Netflix on TV. Instead of tuning in to cable channels, folks tune in to Apple TV, Hulu, Netflix, or other streamers.

What you may not know is that these folks need more than a subscription to watch their streaming services on TV.

The King of Modern TV

A month ago, I told you about Roku, an invisible company that powers the entire streaming industry. Since then, it has shot up 40%+!

Roku is now in 31 million TVs and growing. One in three smart TVs sold in the US contains Roku technology. Which means one in three folks watching Netflix or other streamers does that through Roku.

Today, it builds software that makes TVs “smart” and licenses it out to TV makers. In effect, it turns your TV into a computer… which allows it to connect to the internet to access streaming services like Netflix.

Without Roku, most TVs wouldn’t be able to broadcast streaming services.

Roku is now in 31 million TVs and growing. One in three smart TVs sold in the US contains Roku technology. Which means one in three folks watching Netflix or other streamers does that through Roku.

But licensing software to TV makers is not where Roku’s real money-making machine is. Roku has set its sights on disrupting TV advertising… which is going to be a multi-billion-dollar opportunity.

The most expensive... and useless... advertising industry

A 30-second TV spot during the Super Bowl cost an obscene $5.25 million…

Or $175,000 a second.

The Super Bowl is the most expensive in terms of airtime, but TV, in general, is a ridiculously expensive way to advertise.

And most of that money ends up swirling down the drain.

While you can reach millions of people in seconds, you have little control over who sees your advertisement. It’s like throwing spaghetti against the wall to see what sticks.

That’s the opposite of what digital advertisers, like Facebook, Google, or Amazon, offer.

They allow advertisers to pinpoint a very specific group of people to advertise to, based on what they search for on the internet… what Facebook groups they like…  what websites they browse… or what they’ve shopped for in the past.

For example, advertisers can identify women in their 40s who've bought cat-related products in the last six months.

It’s so precise it’s scary.

That’s why this year, for the first time in history, companies will spend more on precision internet advertising than "spaghetti on the wall" ads on TV or in print.

TV Advertising Meets Digital

With 31 million TV viewers under its belt, Roku has now set out to “digitalize” TV advertising and take it to a whole new level.

On one hand, you have TV. TV still has the incredible ability to reach millions of engaged people. But as I explained, it's imprecise.

On the other hand, you have internet ads. Internet ads are precise, but they don't have the same reach. They are often put in front of people who are mindlessly scrolling the internet… whose brains are trained to ignore ads in the margins of the pages.

Imagine if you could combine the two? If you could get precise ads in front of an engaged audience of millions? Gold mine!

And that is Roku’s grand plan with “streaming advertising." You can read my colleague Justin Spittler’s essay on the best way to cash in on streaming advertising here.

Streaming advertising will combine the best of both the TV and digital advertising worlds. This could easily become the most expensive and effective advertising channel on the planet… and a big money-making machine for Roku.

Roku Could Double or Even Triple

The TV advertising industry is now worth over $70 billion.

While one out of every three hours of TV viewing happens via streaming services, streaming advertising still makes up a meager 3% of TV ad budgets, according to Nasdaq.

That’s just $2.1 billion out of $70 billion.

As streaming continues to phase out cable TV, I expect streaming ads to steal a bigger and bigger piece of the $70 billion pie from TV ads. Which means this industry has plenty of room to grow 10X, 20X, or 30X.

While Roku’s ad revenues are growing at an exponential rate, as you can see below…



… we are still in the very early innings of the TV advertising revolution.

For those reasons, I wouldn’t be surprised if Roku’s advertising revenues grew tenfold in the next five years… handing investors triple-digit gains.

Written with the assistance of Dainius Runkevičius.

The Great Disruptors: 3 Breakthrough Stocks Set to Double Your Money"

Get my latest report where I reveal my three favorite stocks that will hand you 100% gains as they disrupt whole industries. Get your free copy here.

By Stephen McBride

http://www.riskhedge.com

© 2019 Copyright Stephen McBride - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in