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%.
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