Speaking with BNN Bloomberg’s Amber Kanwar on Friday, Barton Crockett, senior research analyst at Rosenblatt Securities, said the average consumer has shifted from consuming entertainment through traditional TV to streaming and internet services. This change has also caused advertisers to shift from spending ad dollars on traditional media to e-commerce and streaming platforms, he added.
Despite this secular shift, Crockett argued that a looming recession will pull ad dollars out of any medium and investors need to plan for this while staying cautious of the trends. “If they do weaken, if the [U.S. Federal Reserve] has to continue to push hard to lower inflation, its’ very bad for advertising potentially and bad for advertising driven internet and media names that are assuming an acceleration and we might get the opposite of that,” he said.