NEW YORK, Dec. 29, 2020 /PRNewswire/ -- As cable TV subscriptions continue plummeting, digital advertising is growing its dominance as the default medium for companies looking to get eyes in front of their products. Online advertising is expected to reach an incredible $1.08 trillion by 2027. Meanwhile, digital advertising companies are getting better and better at reaching targeted audiences for maximum engagement. With new trends in influencer marketing, mobile advertising, programmatic marketing, and more set to gain further momentum in 2021, digital marketing is cementing its place and boosting companies like BBTV Corp. (TSX:BBTV), The Trade Desk Inc (NASDAQ:TTD), AcuityAds Holdings Inc. (TSX:AT) (OTCQX:ACUIF), ViacomCBS Inc. (NASDAQ:VIAC) and IZEA Worldwide (NASDAQ:IZEA).
Digital media technology company BBTV (TSX:BBTV) has built a multi-million dollar business by helping content creators and influencers grow their audiences and generate revenue from their content. The company helps content creators of all sizes, like independent YouTubers and Esports gamers. BBTV also works with media companies like Viacom and Sony Pictures, offering an end-to-end solution that combines content optimization, digital rights management, content collaboration and monetization. In addition to helping content creators, BBTV is able to sell digital advertising through the video views it generates working directly with brands and agencies.
BBTV Continues to Grow Its Revenue and Reach
COVID-19 has accelerated a pre-pandemic shift towards digital media consumption, creating some serious growth for companies on the right side of the change. Throughout 2020, BBTV has demonstrated significant size and scale in its operations given its large and growing base of over 40 billion monthly views. On December 14, the company provided a business update that highlighted a 46% increase in direct advertising revenue year-over-year in the last 12 months ending October 2020. BBTV also experienced a record month in direct advertising in November 2020 with over 50% revenue growth compared to the year before.
The revenue growth adds to an already successful nine months. In November, BBTV reported its Q3 2020 financial results with record quarterly revenues of CA$120.7 million, a 31% increase YoY. According to the release, the increase was driven by growth in views, which jumped 18% to 121.2 billion in Q3, and improved ad revenues. During the third quarter, BBTV also raised CA$172.4 million in proceeds, offering additional cash to execute on the company's growth strategies.
BBTV believes the fourth quarter of 2020 to be its strongest to date and expects to see that upward trend continuing into 2021 as it continues to grow its partnerships and reach.
Digital Advertising and Influencer Marketing See Growth Despite Health Crisis
When the health crisis began this spring, market watchers expected to see a large decline in overall ad spend in the US as businesses slashed their marketing budgets to preserve capital at the height of the outbreak. Luckily, the industry experienced a rapid turnaround in the third quarter, buoyed by digital advertising. The COVID-19 pandemic may have been the last nail in the coffin for traditional media; however, connected TV advertising is estimated to grow 19% YoY, while digital ad spend could rise by 6% in 2020.
AcuityAds Holdings Inc. (TSX:AT) (OTCQX:ACUIF) is another digital media tech company that posted gains in the third quarter. AcuityAds reported Q3 revenue of $26.1 million, which is a modest 3% increase YoY but an encouraging 33% jump from Q2. The company also increased its gross margin to 52% from 48% YoY and increased its adjusted EBITDA by 150%.
Global marketing technology company The Trade Desk Inc (NASDAQ:TTD) has also been faring well this year. Trade Desk took a hit in Q2 along with several other digital advertisers; however, the company has since come back with a bang. In Q3 2020, The Trade Desk reported revenue of $216 million, a 31% increase YoY, and an adjusted EBITDA of US$77 million.
ViacomCBS Inc. (NASDAQ:VIAC), reported in third-quarter earnings that video ad revenues have more than doubled for Pluto TV, which ViacomCBS acquired nearly two years ago. Pluto TV now has 36 million users worldwide, and it appears the company will continue to increase video-advertising revenues as a product of the growth of the ad-supported streaming service as it has announced deals with Sony for Pluto TV distribution on the Sony Playstation platform and LG smart televisions.
Influencer marketing tech company IZEA Worldwide (NASDAQ:IZEA) is another company that is still weathering the COVID-19 storm, but slowly gaining ground. Despite garnering over 15 billion TikTok campaign views during the pandemic, the company reported a 20% decrease in revenue in the second quarter. Luckily, IZEA Worldwide has since announced a surge of new customers in Q4 2020, doubling its managed services customers from the previous quarter.
BBTV has also continued to sign on new content creators at a rapid pace. In early November, the company added four major content creators of note, who together added 267.8 million monthly views and 12.5 million subscribers organically. Weeks later, the company announced the signing of another five international gaming partners who collectively boast over 23 million YouTube subscribers and receive 217 million monthly YouTube views.
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