Evercore survey shows Meta and Google lead digital ad spending

Investing.com -- Evercore hosted calls with seven advertising agency executives who manage client budgets ranging from over $10 million to more than $3 billion across performance marketing and brand advertising.

The survey results showed the most positive near-term revenue trends for Meta Platforms (NASDAQ: META) and Alphabet (NASDAQ: GOOGL). Amazon (NASDAQ: AMZN), Netflix (NASDAQ: NFLX) and Reddit (NYSE: RDDT) received incrementally positive assessments.

AppLovin (NASDAQ: APP) and Pinterest (NYSE: PINS) faced more cautious views, while Snap (NYSE: SNAP) and The Trade Desk (NASDAQ: TTD) received negative assessments.

Digital advertising remains resilient, with advertisers choosing better-performing platforms rather than expanding budgets broadly, according to the survey.

Google Search continues to perform well as artificial intelligence and higher query volumes support spending. YouTube benefits from premium content and automated buying tools.

Meta stands out for improving returns and performance-driven market share gains. The company's Business Agents feature shows encouraging but early signs of potential growth.

ChatGPT attracts substantial testing but limited recurring spending due to immature tools, limited inventory and weak renewal rates.

Amazon shows stabilization in Sponsored Products growth, strength in its demand-side platform and video offerings, and broader adoption from non-endemic advertisers.

Reddit increasingly earns recurring budget allocations through better targeting and advertiser support, though audience scale remains a constraint.

Netflix sees strong demand for premium inventory and improving targeting capabilities, but elevated cost per thousand impressions may weaken advertiser returns.

Pinterest faces slowing spending growth, uneven returns and limited category breadth despite product improvements.

Snap remains weak as labor-intensive campaign management limits competitiveness despite better pricing.

AppLovin's expansion beyond gaming progresses, but inconsistent returns and verification gaps limit recurring adoption.

The Trade Desk loses budgets primarily to Amazon within the limited client sample surveyed.

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