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3 Stocks to Watch From the Advertising & Marketing Industry
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Artificial intelligence (AI), evolving consumer behavior and increasing demand for measurable advertising returns are transforming the Zacks Advertising and Marketing industry. The growing adoption of connected TV (CTV), retail media, digital out-of-home advertising and AI-powered consumer intelligence is creating opportunities for companies offering targeted, data-driven and integrated marketing solutions.
Nexxen International (NEXN - Free Report) stands to benefit from expanding programmatic advertising, CTV adoption and AI-driven campaign optimization. NIQ Global Intelligence (NIQ - Free Report) is strengthening its position in consumer intelligence through advanced analytics, AI-powered commerce solutions and strategic technology partnerships. Meanwhile, National CineMedia (NCMI - Free Report) is diversifying beyond cinema advertising through its acquisition of Captivate, expanding into office and residential digital advertising networks. These developments position the companies to capitalize on advertisers' increasing emphasis on audience engagement, cross-channel reach and measurable campaign effectiveness. However, macroeconomic uncertainty, intense competition, shifting advertising budgets and structural challenges facing traditional media remain significant industry headwinds.
About the Industry
The Advertising and Marketing industry encompasses digital advertising technology, consumer intelligence, media planning and buying, branding, content creation, market research, public relations, cinema advertising, digital out-of-home media and traditional marketing services. Industry participants include global advertising agencies, programmatic advertising platforms, analytics providers and specialized media networks.
Digital video, CTV, retail media, AI-powered marketing and audience measurement are increasingly driving growth as advertisers seek greater precision, engagement, and accountability. AI is reshaping campaign development, consumer insights, media optimization and commerce-related decision-making. Meanwhile, cinema and digital out-of-home platforms are creating additional opportunities to reach audiences beyond conventional digital channels.
What's Shaping the Future of the Industry?
AI and Proprietary Data Are Transforming Advertising Effectiveness: AI increasingly influences advertising strategies by improving audience targeting, campaign optimization, content development, consumer intelligence, and performance measurement. Advertisers are prioritizing proprietary data and analytics that deliver actionable insights and measurable returns, creating opportunities for companies integrating AI into their marketing solutions.
NEXN is advancing its nexAI capabilities and strengthening automation across its advertising technology platform. Its growing enterprise adoption and integration of AI-enabled workflows support more efficient campaign execution. NIQ is expanding AI-powered consumer intelligence through its October 2026 collaboration with Google to advance agentic commerce, combining retail and product intelligence with AI-driven discovery and measurement. Its work with Similarweb also seeks to connect AI-influenced product discovery with purchasing outcomes. Meanwhile, OMC and WPP continue investing in AI-enabled marketing capabilities to improve campaign effectiveness and operational efficiency. However, increasing automation could intensify competition and pressure pricing across conventional advertising services.
Digital, CTV and Retail Media Continue Attracting Advertising Spending: Advertisers are increasingly directing budgets toward CTV, digital video, social platforms and retail media, where advanced targeting and measurement can deliver more efficient customer engagement. WPP Media's June 2026 forecast projects global advertising revenues, excluding U.S. political advertising, to increase 8.9% to approximately $1.3 trillion in 2026, reflecting continued industry expansion.
NEXN is benefiting from growing demand for programmatic advertising and CTV solutions. Its second-quarter 2026 results featured record quarterly CTV revenues and an 11% increase in contribution excluding traffic acquisition costs. NIQ is positioned to benefit from the expansion of retail media and commerce intelligence as brands increasingly rely on consumer purchase data to refine advertising and merchandising strategies. Its growing Activation business and advanced analytics capabilities support deeper relationships with retailers and advertisers. FLNT, DRCT, STGW, OMC and WPP are also pursuing opportunities across digital advertising, commerce and integrated marketing services. However, rapid technological changes and competitive pricing could constrain profitability.
Cinema and Digital Out-of-Home Advertising Offer Diversification Opportunities: Although traditional media continues to face structural challenges, premium video and digital out-of-home advertising are creating opportunities for brands to engage audiences across physical environments. Cinema advertising offers access to attentive moviegoers, while digital screens in offices and residential properties provide additional opportunities to reach consumers outside conventional online channels.
NCMI is capitalizing on this trend through its September 2026 acquisition of Captivate, expanding its advertising platform beyond theaters into office and residential buildings. The combined network comprises more than 48,000 digital screens across 185 designated market areas, including all 100 of the largest U.S. markets. In October, the company also announced 12 new and renewed exhibitor agreements covering more than 680 screens, strengthening its cinema advertising footprint. NCMI's second-quarter revenues increased 12.7% year over year to $58.4 million, supported by box-office momentum and advertising execution. The expanded network offers opportunities for broader advertiser relationships, cross-selling and integrated video campaigns. However, box-office fluctuations, advertiser demand and acquisition integration risks remain important challenges.
Macroeconomic Uncertainty and Changing Consumer Behavior Demand Greater Accountability: Economic uncertainty, geopolitical tensions, tariffs and changing consumer spending patterns continue to influence advertising budgets. Marketers are becoming more selective about campaign investments, emphasizing measurable returns, efficient customer acquisition and flexible media strategies. These conditions favor companies providing reliable consumer intelligence, performance measurement and diversified advertising channels.
NIQ's research highlights growing consumer adoption of AI-assisted shopping, reinforcing the importance of understanding evolving purchasing behavior. Its consumer intelligence solutions can help brands adjust marketing and commercial strategies in response to changing demand. NEXN's data-driven advertising platform supports campaign optimization across increasingly fragmented media channels. NCMI's expanded premium video network provides adver
Zacks Industry Rank Indicates Strong Near-Term Prospects
The Zacks Advertising and Marketing industry, housed within the broader Zacks Business Services sector, currently carries a Zacks Industry Rank #191. This rank places it in the bottom 23% of 246 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates underperformance in the near term. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock market performance and current valuation:
Industry's Price Performance
Over the past year, the Zacks Advertising and Marketing industry has outperformed the S&P 500 composite and the broader sector. The industry has gained 37.4% compared with the S&P 500 composite’s growth of 12.4% and against the broader sector’s decline of 8.9%.
One-Year Price Performance
Industry's Current Valuation
Based on the forward 12-month price-to-earnings (P/E) ratio, which is commonly used for valuing advertising and marketing stocks, the industry is currently trading at 7.3X compared with the S&P 500’s 18.55X and the sector’s 18.02X.
Over the past five years, the industry has traded as high as 11.7 and as low as 5.68X, with the median being 8.78X, as the charts below show.
Price-to-Forward 12-Month P/E Ratio
3 Advertising Stocks to Consider
Here, we have presented three stocks that are well-positioned for near-term growth:
NIQ Global Intelligence: Headquartered in Chicago, NIQ Global Intelligence is a consumer intelligence and market research company operating in more than 90 countries. Its offerings include The Full View, NIQ Discover and GfK solutions, combining consumer and retail data with AI-powered analytics.
The company delivered a strong second quarter of 2026, marking its fifth consecutive period of outperforming the high end of guidance across key metrics. Organic constant-currency revenue growth accelerated to 5.8%, while adjusted EBITDA increased nearly 22%, driving a 270-basis-point expansion in adjusted EBITDA margin to 23.3%. Strong earnings, positive levered free cash flow of $74.1 million, and lower leverage further highlight improving financial health.
Management’s decision to raise full-year 2026 guidance reflects confidence in the business outlook. Consistent organic growth, healthy customer retention, expanding margins, rising profitability, and emerging AI opportunities provide multiple avenues for sustained growth. With adjusted EBITDA expected to exceed $1 billion, cash flow projected at $245-$255 million, and leverage moving toward the sub-3x target, the company appears well positioned for continued financial improvement.
Nexxen International: Headquartered in Tel Aviv-Yafo, Israel, Nexxen International provides an end-to-end, video-first advertising technology platform for brands, agencies and digital publishers. Its key offerings include Nexxen DSP, Nexxen Data Platform, Nexxen SSP, Nexxen Discovery, Nexxen Studio and the VoterMatch political advertising platform.
Nexxen continues to benefit from strong enterprise engagement and rising platform utilization, supported by growing demand for its CTV, mobile in-app and data-driven advertising solutions. Its CTV business remains a key growth driver, with quarterly revenues reaching an all-time high and increasing 33% year over year in the second quarter. The company has also raised its full-year Contribution ex-TAC and programmatic revenue guidance for the third time this year, reflecting confidence in sustained business momentum.
Nexxen is further strengthening its competitive positioning through continued AI innovation, with nexAI designed to integrate into customers' AI infrastructure and provide access to its proprietary data, intelligence and activation capabilities. Growing traction for Nexxen TV Home Screen and investments in an open, interoperable technology ecosystem could create additional growth opportunities and help the company capture a larger share of the expanding programmatic advertising market.
The Zacks Consensus Estimate for Nexxen’s 2026 bottom line has remained unchanged over the past 60 days at $1.02. It currently carries a Zacks Rank #3 (Hold).
Price & Consensus: NEXN
National CineMedia: Headquartered in Centennial, CO, National CineMedia operates one of the largest cinema advertising networks in the United States, connecting advertisers with moviegoers through on-screen advertising and promotional campaigns. The company is expanding its presence in digital out-of-home advertising, particularly through its acquisition of Captivate.
National CineMedia continues to demonstrate business resilience, delivering meaningful growth amid a competitive advertising environment and benefiting from a strong domestic box office. The company is also strengthening its operating model by expanding its local advertising business and improving efficiencies through its operational transformation initiatives, supporting better execution and long-term profitability.
A key growth catalyst is its agreement to acquire Captivate, a leading digital video advertising operator across office buildings and residential properties in North America. The acquisition is expected to expand and diversify NCM's premium advertising platform beyond movie theaters, providing access to highly engaged audiences across multiple high-attention locations. The combined platform could enhance its appeal to advertisers, create cross-selling opportunities and strengthen its competitive position in the digital out-of-home advertising market.
The Zacks Consensus Estimate for Nexxen’s 2026 bottom line has remained unchanged over the past 60 days at 17 cents. It currently carries a Zacks Rank #3.
View the Zacks #1 Rank List
Image: Bigstock
3 Stocks to Watch From the Advertising & Marketing Industry
Artificial intelligence (AI), evolving consumer behavior and increasing demand for measurable advertising returns are transforming the Zacks Advertising and Marketing industry. The growing adoption of connected TV (CTV), retail media, digital out-of-home advertising and AI-powered consumer intelligence is creating opportunities for companies offering targeted, data-driven and integrated marketing solutions.
Nexxen International (NEXN - Free Report) stands to benefit from expanding programmatic advertising, CTV adoption and AI-driven campaign optimization. NIQ Global Intelligence (NIQ - Free Report) is strengthening its position in consumer intelligence through advanced analytics, AI-powered commerce solutions and strategic technology partnerships. Meanwhile, National CineMedia (NCMI - Free Report) is diversifying beyond cinema advertising through its acquisition of Captivate, expanding into office and residential digital advertising networks. These developments position the companies to capitalize on advertisers' increasing emphasis on audience engagement, cross-channel reach and measurable campaign effectiveness.
However, macroeconomic uncertainty, intense competition, shifting advertising budgets and structural challenges facing traditional media remain significant industry headwinds.
About the Industry
The Advertising and Marketing industry encompasses digital advertising technology, consumer intelligence, media planning and buying, branding, content creation, market research, public relations, cinema advertising, digital out-of-home media and traditional marketing services. Industry participants include global advertising agencies, programmatic advertising platforms, analytics providers and specialized media networks.
Digital video, CTV, retail media, AI-powered marketing and audience measurement are increasingly driving growth as advertisers seek greater precision, engagement, and accountability. AI is reshaping campaign development, consumer insights, media optimization and commerce-related decision-making. Meanwhile, cinema and digital out-of-home platforms are creating additional opportunities to reach audiences beyond conventional digital channels.
What's Shaping the Future of the Industry?
AI and Proprietary Data Are Transforming Advertising Effectiveness: AI increasingly influences advertising strategies by improving audience targeting, campaign optimization, content development, consumer intelligence, and performance measurement. Advertisers are prioritizing proprietary data and analytics that deliver actionable insights and measurable returns, creating opportunities for companies integrating AI into their marketing solutions.
NEXN is advancing its nexAI capabilities and strengthening automation across its advertising technology platform. Its growing enterprise adoption and integration of AI-enabled workflows support more efficient campaign execution. NIQ is expanding AI-powered consumer intelligence through its October 2026 collaboration with Google to advance agentic commerce, combining retail and product intelligence with AI-driven discovery and measurement. Its work with Similarweb also seeks to connect AI-influenced product discovery with purchasing outcomes. Meanwhile, OMC and WPP continue investing in AI-enabled marketing capabilities to improve campaign effectiveness and operational efficiency. However, increasing automation could intensify competition and pressure pricing across conventional advertising services.
Digital, CTV and Retail Media Continue Attracting Advertising Spending: Advertisers are increasingly directing budgets toward CTV, digital video, social platforms and retail media, where advanced targeting and measurement can deliver more efficient customer engagement. WPP Media's June 2026 forecast projects global advertising revenues, excluding U.S. political advertising, to increase 8.9% to approximately $1.3 trillion in 2026, reflecting continued industry expansion.
NEXN is benefiting from growing demand for programmatic advertising and CTV solutions. Its second-quarter 2026 results featured record quarterly CTV revenues and an 11% increase in contribution excluding traffic acquisition costs. NIQ is positioned to benefit from the expansion of retail media and commerce intelligence as brands increasingly rely on consumer purchase data to refine advertising and merchandising strategies. Its growing Activation business and advanced analytics capabilities support deeper relationships with retailers and advertisers. FLNT, DRCT, STGW, OMC and WPP are also pursuing opportunities across digital advertising, commerce and integrated marketing services. However, rapid technological changes and competitive pricing could constrain profitability.
Cinema and Digital Out-of-Home Advertising Offer Diversification Opportunities: Although traditional media continues to face structural challenges, premium video and digital out-of-home advertising are creating opportunities for brands to engage audiences across physical environments. Cinema advertising offers access to attentive moviegoers, while digital screens in offices and residential properties provide additional opportunities to reach consumers outside conventional online channels.
NCMI is capitalizing on this trend through its September 2026 acquisition of Captivate, expanding its advertising platform beyond theaters into office and residential buildings. The combined network comprises more than 48,000 digital screens across 185 designated market areas, including all 100 of the largest U.S. markets. In October, the company also announced 12 new and renewed exhibitor agreements covering more than 680 screens, strengthening its cinema advertising footprint. NCMI's second-quarter revenues increased 12.7% year over year to $58.4 million, supported by box-office momentum and advertising execution. The expanded network offers opportunities for broader advertiser relationships, cross-selling and integrated video campaigns. However, box-office fluctuations, advertiser demand and acquisition integration risks remain important challenges.
Macroeconomic Uncertainty and Changing Consumer Behavior Demand Greater Accountability: Economic uncertainty, geopolitical tensions, tariffs and changing consumer spending patterns continue to influence advertising budgets. Marketers are becoming more selective about campaign investments, emphasizing measurable returns, efficient customer acquisition and flexible media strategies. These conditions favor companies providing reliable consumer intelligence, performance measurement and diversified advertising channels.
NIQ's research highlights growing consumer adoption of AI-assisted shopping, reinforcing the importance of understanding evolving purchasing behavior. Its consumer intelligence solutions can help brands adjust marketing and commercial strategies in response to changing demand. NEXN's data-driven advertising platform supports campaign optimization across increasingly fragmented media channels. NCMI's expanded premium video network provides adver
Zacks Industry Rank Indicates Strong Near-Term Prospects
The Zacks Advertising and Marketing industry, housed within the broader Zacks Business Services sector, currently carries a Zacks Industry Rank #191. This rank places it in the bottom 23% of 246 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates underperformance in the near term. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock market performance and current valuation:
Industry's Price Performance
Over the past year, the Zacks Advertising and Marketing industry has outperformed the S&P 500 composite and the broader sector. The industry has gained 37.4% compared with the S&P 500 composite’s growth of 12.4% and against the broader sector’s decline of 8.9%.
One-Year Price Performance
Industry's Current Valuation
Based on the forward 12-month price-to-earnings (P/E) ratio, which is commonly used for valuing advertising and marketing stocks, the industry is currently trading at 7.3X compared with the S&P 500’s 18.55X and the sector’s 18.02X.
Over the past five years, the industry has traded as high as 11.7 and as low as 5.68X, with the median being 8.78X, as the charts below show.
Price-to-Forward 12-Month P/E Ratio
3 Advertising Stocks to Consider
Here, we have presented three stocks that are well-positioned for near-term growth:
NIQ Global Intelligence: Headquartered in Chicago, NIQ Global Intelligence is a consumer intelligence and market research company operating in more than 90 countries. Its offerings include The Full View, NIQ Discover and GfK solutions, combining consumer and retail data with AI-powered analytics.
The company delivered a strong second quarter of 2026, marking its fifth consecutive period of outperforming the high end of guidance across key metrics. Organic constant-currency revenue growth accelerated to 5.8%, while adjusted EBITDA increased nearly 22%, driving a 270-basis-point expansion in adjusted EBITDA margin to 23.3%. Strong earnings, positive levered free cash flow of $74.1 million, and lower leverage further highlight improving financial health.
Management’s decision to raise full-year 2026 guidance reflects confidence in the business outlook. Consistent organic growth, healthy customer retention, expanding margins, rising profitability, and emerging AI opportunities provide multiple avenues for sustained growth. With adjusted EBITDA expected to exceed $1 billion, cash flow projected at $245-$255 million, and leverage moving toward the sub-3x target, the company appears well positioned for continued financial improvement.
The Zacks Consensus Estimate for NIQ’s 2026 bottom line has remained unchanged over the past 60 days at $1.09. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price & Consensus: NIQ
Nexxen International: Headquartered in Tel Aviv-Yafo, Israel, Nexxen International provides an end-to-end, video-first advertising technology platform for brands, agencies and digital publishers. Its key offerings include Nexxen DSP, Nexxen Data Platform, Nexxen SSP, Nexxen Discovery, Nexxen Studio and the VoterMatch political advertising platform.
Nexxen continues to benefit from strong enterprise engagement and rising platform utilization, supported by growing demand for its CTV, mobile in-app and data-driven advertising solutions. Its CTV business remains a key growth driver, with quarterly revenues reaching an all-time high and increasing 33% year over year in the second quarter. The company has also raised its full-year Contribution ex-TAC and programmatic revenue guidance for the third time this year, reflecting confidence in sustained business momentum.
Nexxen is further strengthening its competitive positioning through continued AI innovation, with nexAI designed to integrate into customers' AI infrastructure and provide access to its proprietary data, intelligence and activation capabilities. Growing traction for Nexxen TV Home Screen and investments in an open, interoperable technology ecosystem could create additional growth opportunities and help the company capture a larger share of the expanding programmatic advertising market.
The Zacks Consensus Estimate for Nexxen’s 2026 bottom line has remained unchanged over the past 60 days at $1.02. It currently carries a Zacks Rank #3 (Hold).
Price & Consensus: NEXN
National CineMedia: Headquartered in Centennial, CO, National CineMedia operates one of the largest cinema advertising networks in the United States, connecting advertisers with moviegoers through on-screen advertising and promotional campaigns. The company is expanding its presence in digital out-of-home advertising, particularly through its acquisition of Captivate.
National CineMedia continues to demonstrate business resilience, delivering meaningful growth amid a competitive advertising environment and benefiting from a strong domestic box office. The company is also strengthening its operating model by expanding its local advertising business and improving efficiencies through its operational transformation initiatives, supporting better execution and long-term profitability.
A key growth catalyst is its agreement to acquire Captivate, a leading digital video advertising operator across office buildings and residential properties in North America. The acquisition is expected to expand and diversify NCM's premium advertising platform beyond movie theaters, providing access to highly engaged audiences across multiple high-attention locations. The combined platform could enhance its appeal to advertisers, create cross-selling opportunities and strengthen its competitive position in the digital out-of-home advertising market.
The Zacks Consensus Estimate for Nexxen’s 2026 bottom line has remained unchanged over the past 60 days at 17 cents. It currently carries a Zacks Rank #3.
Price & Consensus: NCMI