Coronavirus Forces Companies to Embrace Adtech and Martech; Sector Booms
NetworkNewsWire Editorial Coverage
NEW YORK, May 6, 2021 /PRNewswire/ -- Brands are faced with myriad challenges to stay at the top of their game to capture share in their respective markets. Simple fact is that technology advances so rapidly in today's world that it takes devoting considerable resources and deliberate strategy to effectively reach target demographics. The worldwide outset of the COVID-19 pandemic last March turned the marketing/advertising industry on its head, forcing brands to immediately adopt the latest digital technologies, colloquially known as adtech and martech, which gave a few small companies a big jumpstart to capitalize on the opportunity. A perfect example of this is DGTL Holdings Inc. (TSX.V: DGTL) (OTCQB: DGTHF) (Profile). Major international brands turned to the company for its proprietary artificial intelligence-driven marketing platform to reach potential consumers from an integrated platform. What COVID-19 did to accelerate everyday use of adtech and martech will not be undone as targeted digital is now the preferred solution. The trend is benefitting others active in the space, such as Perion (NASDAQ: PERI), the Trade Desk (TSX: TTD), Acuity Ads Holdings Inc. (TSX: AT) and Kubient (NASDAQ: KBNT).
- DGTL on track to reach cashflow breakeven in just 12 months post-acquisition of Hashoff.
- More than 6 out of every 10 Americans spend more time shopping online due to the COVID-19 pandemic.
- Latest on list of growing international clients is Suntory, the third-largest producer of premium distilled product brands worldwide.
- Similar companies in the adtech space are trading at up to 50x P/E ratio, while DGTL is trading at a mere 3-4x.
Click here to view the custom infographic of the DGTL Holdings Inc. editorial.
Welcome to the New World of Advertising
For more than a year now, businesses around the world have been shuttered and people told to stay home in a bid to shunt viral contagion. In a strange way, it may have been a blessing in disguise for many brands that were forced to take a forensic look at operating expenses to get the most bang for their buck. This was especially true for advertising and marketing budgets, the lifeblood to sales that keep a brand in business. With consumer spending making up the majority of economies, governments aggressively provided financial stimulus to households. To that point, advertisers needed to be more targeted than ever to get into the wallets of consumers, most of which were sheltering, working and shopping at home.