Digital ad market shows signs of sharp rebound as Meta, Amazon point to growth

▤ Summary

A year ago, Meta finance chief Susan Li offered chilling commentary about the state of the digital ad market, telling analysts that the struggling industry would remain in a slump. Speaking to analysts on the companys fourth-quarter earnings call, Li said at the time that Facebooks revenue "remained under pressure from weak advertising demand" and that sales would continue "to be impacted by the uncertain and volatile macroeconomic landscape." Debra Aho Williamson, principal analyst at Insider Intelligence, told CNBC that big advertiser events like the Summer Olympics in Paris and the upcoming presidential elections will contribute to higher spending. Regarding Metas China business, Li told analysts last week that "the level of growth in 2023 will probably be hard to replicate, but well just keep watching this and see how it plays out." Analysts at Bank of America Global Research warned in a note on Friday that investors shouldnt look past the conflict in the Red Sea, which is causing supply chain bottlenecks and could lead ecommerce companies to reduce their ad spending.

▦ Linked Companies

Amazon

$1B+