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Our Outlook for the Media Sector

We find some compelling investment opportunities among wide-moat media conglomerates.

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Most of the media companies that we cover get a healthy chunk of their revenue from advertising, so we follow trends in ad spending closely. For the most part, that trend wasn't a healthy one during the second quarter. According to data recently released by industry researcher TNS Media Intelligence, which excludes paid search, ad spending slipped 0.2% in the second quarter from the same period a year ago. Overall results were impacted the most by business-to-business magazines and newspapers, down 9% and 7%, respectively. The most significant bright spot was the 19% growth in Internet display advertising, which was even better than the 17% growth achieved during the first quarter of the year.

James Walden does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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