• After a year of massive volatility in 2020 momentum stocks have dominated the pandemic’s bull market since the steep correction in March. Have markets got ahead of themselves in pricing a return to growth? Listen here.

The new post-pandemic world of marketing

01122020_Online Shopping

The new post-pandemic world of marketing

In the space of five months, consumer online buying in the United States grew from around 15 per cent to 45 per cent for most categories. This is an extraordinary acceleration in consumer behaviour towards digital channels – and one that is likely here to stay. For those in the business of marketing to consumers, this new reality has significant implications, as McKinsey points out in their recent note on the subject.

In this new post-pandemic world, Chief Marketing Officers (CMOs) need to make sure they are  not only spending the right amount of money on media; but also that they have the real-time analytics in place to be able to measure the effectiveness of marketing spend and fine-tune when necessary.

The net result of consumers accelerating their adoption of online channels, combined with digital media offering CMOs the ability to analyse efficacy of spend in real-time, is that marketing budgets are accelerating their shift away from traditional (non-digital) media, towards various forms of digital media. These include search, social, video and even new forms of digital marketing like podcast advertising.

01122020_Chart 1

Beneficiaries of this acceleration will naturally include Alphabet, Facebook, Amazon, Spotify as well as Tencent and Alibaba in China. These are all businesses included in the Montaka portfolios today.

You can access the McKinsey article here: Five questions to answer before you finalize your media plan

The Montgomery Global Funds and Montaka Funds own shares in Alphabet, Facebook, Amazon, Spotify, Tencent and Alibaba. This article was prepared 27 November with the information we have today, and our view may change. It does not constitute formal advice or professional investment advice. If you wish to trade any of these stocks you should seek financial advice.

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Andrew Macken is the Chief Investment Officer of the Montaka funds and the Montgomery Global funds. He established MGIM in 2015 in partnership with Montgomery.

This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.

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