Back to top

Image: Bigstock

AT&T's Xandr Enhances Portfolio With On-Demand Ad Service

Read MoreHide Full Article

AT&T Inc. (T - Free Report) recently announced that its advertising unit, Xandr, introduced an on-demand ad-service — Pause Ads — for enhancing customer experience across various traditional and connected TV channels. The move is likely to boost ad innovation in response to dynamic TV consumption habits.

The New York-based advertising honcho’s innovative step toward ad-viewing ensures premium ad formats across cable and broadcast networks so that the audience can view the advertisement in a brand-safe viewing environment. It leverages the innate functionality of the “pause” button, making advertisements live only when consumers take a break from the content they’re currently watching. Moreover, as Pause Ads are not restricted to a standard 15 to 30 second timing, both established and emerging brands have more avenues to reach audiences in the most non-intruding manner.

Apart from uninterrupted video streaming, advertisers offer unconventional ways to distribute customizable content outside the scope of traditional in-stream commercial breaks to consumers. It also delivers relevant sound-free messages in animated formats. Xandr aims to leverage the integrated platform to deliver effective ad messages to a wider population, allowing advertisers to combine the power of addressable TV with the precision and scale of digital market. Pause Ads are available with emerging advertising partners like AT&T Mobility and EPIX across AT&T TV NOW network.

With an integrated business platform, AT&T aims to promote next-gen advertising with a new dimension to its business model. It also aims to roll out a streaming service in spring 2020 with an unrivaled bouquet of premium and exclusive content for an impressive direct-to-consumer experience across all the age groups. Dubbed HBO Max, the strategic move will equip the company to play catch-up with giant media firms like Netflix Inc. (NFLX - Free Report) and The Walt Disney Company (DIS - Free Report) , and secure the lion’s share of the streaming service market. All these initiatives augur well for top-line growth of the company.

AT&T has long-term earnings growth expectation of 4.4%. Driven by diligent execution of operational strategies, the stock has rallied 30.4% compared with the industry’s growth of 13.6% in the past year.

        

AT&T currently has a Zacks Rank #3 (Hold).

A better-ranked stock in the industry is Verizon Communications Inc. (VZ - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Verizon surpassed estimates in each of the trailing four quarters, the average positive earnings surprise being 2.2%.

The Hottest Tech Mega-Trend of All

Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


The Walt Disney Company (DIS) - free report >>

Netflix, Inc. (NFLX) - free report >>

Verizon Communications Inc. (VZ) - free report >>

ATT Inc. (T) - free report >>