Advertising Penny Stocks Ready To Rise
Retailers are gearing up for what they hope will be a profitable holiday shopping season. To get the ball rolling, many retailers are running advertising campaigns earlier in the season. And a good number of retailers are running their ad campaigns more frequently.
The plan is to get more consumers into stores now. Retailers believe earlier shopping will drive higher sales for the holiday season.
You may recall I talked about this in my article from last week, Holiday Shopping Set To Benefit Retail Penny Stocks.
But retailers arent the only ones poised to profit from this strategy
Advertising companies are poised to cash in as well.
Let me explain
Retailers typically boost spending on advertising during the holidays. In fact, some companies will spend a large chunk of their annual advertising budget in the fourth quarter.
Heres a great example
Kohls department store is ramping up ad spending this holiday season. Advertising Age reports Kohls will be adding over $30 million to their 2011 holiday budget.
Kevin Mansell, Kohls CEO, recently said the holiday season will be competitive and promotional, and increased marketing investment is a big part of the brand’s strategy to attract consumers.
Whats really interesting is how Kohls is spending their ad dollars
The department store chain is looking to stay ahead of the digital curve. As a result, theyre planning nine homepage takeovers on sites such as Yahoo, AOL, and MSN.
Whats more, Kohls is boosting paid-advertising efforts with Facebook. And they plan to use targeted online ads as well. When a massive brick and mortar retailer like Kohls steps up digital advertising, its usually a great sign for the advertising industry.
And Kohls isnt the only one
Were seeing a major shift in how retailers spend their ad dollars. Walmart, Target, and JCPenney are all advertising more online this holiday season.
So how can we profit from this trend?
The good news is were still early in the digital advertising trend. That means nows a great time to buy penny stocks set to cash in on digital advertising.
And the best part is, theres more than one place to look for these companies
First, take a look at the technology innovators. There are several small, cutting edge companies who make digital ads work. DexOne (DEXO) and SuperMedia (SPMD) are two hot digital tech penny stocks.
Of course, you can always buy the specialty ad agencies themselves. These are the companies using the technology to sell ad space. Two good places to start are ReachLocal (RLOC) and QuinStreet (QNST).
With the 2011 retail shopping season just underway, nows a great time to buy advertising penny stocks. Give yourself the gift that keeps on giving. Add one or two of these stocks to your portfolio today.
Until next time,
Brian Walker
Category: Penny Stocks to Buy, Penny Stocks to Watch, Retail Stocks
