These three tech stocks may reap the rewards of a brand advertising rebound

A man wearing a face mask walks past a Twitter logo outside their New York City headquarters. Facebook and Twitter took steps to limit the spread of a controversial New York Post article critical of Joe Biden, sparking outrage among conservatives and stoking debate over how social media platforms should tackle misinformation ahead of the US election.

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As brand advertising spending makes its comeback after the broader industry took a major hit earlier this year due to the pandemic, some companies are set to see a particular benefit by the return of those dollars.

While advertising in the area of “direct-response,” or ads that encourage consumers to take immediate action like download an app or buy something from an e-commerce site, has remained more resilient this year, spend for brand campaigns have shown a different trajectory; UBS analysts commented in a recent note that while direct-response has led the recovery, brand advertising has been slower to return. 

A slew of companies are likely to benefit as advertisers start to ramp up brand advertising, like media companies that receive revenue from TV advertising and advertising holding companies whose agencies make the campaigns and buy advertising on behalf of their brand clients.


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