Can I Get Your Attention?
With a world of information at our fingertips, attention is at a premium. At the same time, digital interfaces, e.g., computers, tablets and smartphones, are cutting out the middleman, allowing brands to communicate directly with consumers in unprecedented ways. The result is increased digital advertising spending.

  • Internet advertising spending has grown 20% annually since 2011, increasing from about $77 billion to an estimated $277 billion. Simultaneously, time spent with digital media has been growing double digits and now accounts for half of media consumption. 

  • As consumers visit brick and mortar stores less and shop from their couches and beds more, old beacons of marketing via the retail store give way to direct digital advertising such as social media displays and messages. This is driving the economy to become more dependent on advertising. 

  • Digital advertising growth still has a long way to go as it is only now being integrated into the physical world. For example, with mobile phones and location-based technology, companies can now measure the conversion of digital advertising into foot traffic in stores. This strengthens the return on investment (ROI) of digital advertising and likely will spur increased business adoption of digital marketing. 

  • Companies that facilitate the direct conversation between brands and consumers, such as social media companies, search engines and e-commerce companies, are not only contributing to the proliferation of targeted advertising but may also be well positioned for future gains.

The views expressed are the views of Fred Alger Management, Inc. as of September 2018. These views are subject to change at any time and they do not guarantee the future performance of the markets, any security or any funds managed by Fred Alger Management, Inc. These views are not meant to provide investment advice and should not be considered a recommendation to purchase or sell securities.

This material must be accompanied by the most recent fund fact sheet(s) if used in connection with the sale of mutual fund shares. 

Risk Disclosure: 
Investing in the stock market involves gains and losses and may not be suitable for all investors. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Many technology companies have limited operating histories and prices of these companies' securities have historically been more volatile than other securities, especially over the short term. Technology companies may also face increased competition, government regulation, and risk of obsolescence due to progress in technological developments. 

Fred Alger & Company, Incorporated 
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