Zinger Key Points
- Meta, The Trade Desk, and Amazon receive strong third quarter advertiser feedback, signaling bullish growth for 2025.
- The Trade Desk stands out with accelerating ad spending, with advertisers set to boost spending by 10% or more next year.
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Digital advertising’s heavy hitters are entering the fourth quarter with positive momentum, according to Wedbush Securities’ analyst Dan Ives.
In Wedbush Securities’ latest survey of over 200 U.S.-based marketers, advertisers expressed bullish sentiments for Meta Platforms Inc META, The Trade Desk Inc TTD, and Amazon.com Inc AMZN as the sector prepares for 2025 and beyond.
Meta: Bucking The Slowdown Trend?
Meta is getting encouraging marks from advertisers, with only a slight deceleration in growth reported between the second and third quarter. More importantly, spending intent for 2025 looks bright.
"Advertisers we reached are planning to accelerate their Meta ad spending in 2025 versus 2H24," Ives notes.
This upbeat sentiment counters market models that expect a slowdown, and Meta is projected to outperform consensus estimates for next year.
The Trade Desk: Accelerating Growth
For The Trade Desk, it's more good news.
Growth appears to be picking up speed, with advertisers reporting stronger numbers for the third quarter compared to second.
"Our survey showed accelerating growth for TTD in 3Q versus 2Q," Ives observed. While consensus expects stable growth, the sentiment from advertisers implies a stronger performance as we head into the final quarter of 2024 and beyond.
Read Also: Tesla Stock Plunges 3% Despite Q3 Deliveries Exceeding Consensus And Growing Year-Over-Year
Amazon: Stronger Ad Spending Growth
Amazon's advertising game is also on the rise, with advertisers noting a sequential improvement in the third quarter. "Our survey suggests a sequential improvement in Amazon's ad business in 3Q," according to Wedbush.
While analysts expect Amazon's ad revenue growth to slow slightly, Wedbush estimates still show a healthy increase of more than 19% year over year.
A Bullish Future?
With strong feedback across Meta, Trade Desk, and Amazon, Wedbush’s survey points to a robust future for digital advertising.
As marketers ramp up spending into 2025, these tech giants could see their ad revenue growth exceed expectations, reinforcing their dominant positions in the digital landscape.
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