Alphabet Inc

We spend increasing amounts of time online every day. More and more activities in our lives are being done online. With so much traffic, digital marketing has gained tremendously. The race to capture eyeballs and clicks is something that online advertising stocks are competing in.

The most dominant player in the online advertising industry is Alphabet (NASDAQ: GOOGL). It controls 30% of the market share. What makes Alphabet one of the top stocks to buy in digital advertising is the fact that it has apps, a browser, a search engine, etc. that allow it to leverage online traffic and valuable data. Alphabet has greater ambitions in collecting even more data. It is currently awaiting approval for the purchase of health-tech company Fitbit. Alphabet also has the world’s most used mobile operating system Android.

If you are looking to buy advertising stocks, then Alphabet is one of the most attractive candidates. Another promising name among ad stocks to buy is Facebook. Even though Facebook is a social network, it accumulates incredible amounts of data every single day as billions around the world spend anywhere from a few minutes to a few hours on the platform. Over 3 million businesses advertise on Facebook, making it one of the largest advertising platforms in the world.

Alphabet has returned 10.81% since January 2nd, 2020 while Facebook has returned 24.56% during the same period. Compare that with the S&P500’s return of 3.55% year-to-date. Both digital advertising stocks have significantly outperformed the broader market. Given that the pandemic has led to disruptions in traditional industries and sectors, the tech players are expected to continue performing strongly in the near term.