For many companies, advertising is very necessary to attract new customers and growth. However, the advertisement can also be enormous expenses. For example, in the past 12 months, Coca-Cola New York: Co It spent approximately $ 5 billion on ads, which equals about 11 % of the company’s total revenue. However, some companies are able to provide this cost significantly.
This can be due to the nature of its products and customer base. Some products can be used from oral advertising, as the word products are spread naturally through the users who participate with them. Below are two arrows that excel in this field. Over the past 12 months, their advertising spending has been less than 1 % of total revenue. All scales depend on data as of the closure of March 19 unless otherwise mentioned.
Reddit: Network effects keep a decrease in advertising with the growth of users
I replied today
- 52 weeks
- $ 37.35
▼
230.41 dollars
- The target price
- 162.68 dollars
First Up is a company that completely embodies the idea of the word mouth, reddit Nyse: rddt. The online discussion plate uses a form of collective outsourcing, relying on its users to spread and discuss interesting content. Over the past 12 months, Reddit only spent 9 million dollars on the advertisementOnly 0.7 % of its revenue of $ 1.3 billion during this period. As the statute grows, the value of users has increased, which made users be attracted to it by nature.
This phenomenon is often called the effect of the network. Show the effect of the network is the fact that although the company spends a relatively little ads, it was able to increase its daily active uniqueness (Dauq) by 39 %. Dauq are Faridon users who visited the Reddit page at least once a day.
Reddit stock expectations today
162.68 dollars
40.90 % upHold
Based on 23 analyst classifications
| The current price | 115.46 dollars |
|---|---|
| High expectations | $ 220.00 |
| Average expectations | 162.68 dollars |
| Low expectations | $ 54.00 |
Details of Reddit stocks
Additional proof of the effect of the company’s network is that the user’s growth rate has already increased during the decline in ads. In 2022, the Dauq company grew only 7 % despite the spending of more than $ 34 million on the advertisement. Consequently, the company achieved only 0.2 % used growth for per million dollars spent on ads in 2022. In 2024, this number was more than 4.3 %, which is nearly 21 times in the efficiency of advertising spending.
Another example shows how Reddit used ads spending very efficiently in the past. The famous Reddit bought only five seconds in the SUPER BOWL 2021 broadcast. Although the advertisement is very short, ads review at the Kelog Paul Paul School at Northwestern University is one of the most effective. It was ranked first in the first rank made by the Super Bowl AD on Google and Reddit increased by 25 %. This showed the ability of the Reditt advertisement very effective even when they spent much less than other companies.
Nervous axis: Law enforcement cooperation creates a natural declaration
Axon Enterprise today
As of 03/21/2025 04:00 pm
- 52 weeks
- $ 273.52
▼
715.99 dollars
- P/E ratio.
- 144.70
- The target price
- 604.67 dollars
Another company spends a very little advertisement is a nervous axis Nasdak: a nervous axis. Over the past 12 months, industrial shares have been spent Only $ 4.4 million on the advertisementOnly 0.2 % of its total revenue. Nevertheless, the company has grown more than 33 % revenue in 2024. The company’s main customer group, which is to enforce the law, greatly, contribute significantly to its ability to do so.
Law enforcement agencies often work to work closely together in order to capture criminals. Therefore, it is logical that the word popular products such as Axon’s spread naturally. In addition, the Axon program is easy for officers to share evidence with other departments. This publishes the word AXON when other departments see joint evidence using technology.
Axon Enterprise today
604.67 dollars
7.98 % upModerate purchase
Based on 14 analyst classifications
| The current price | 560.00 dollars |
|---|---|
| High expectations | 800.00 dollars |
| Average expectations | 604.67 dollars |
| Low expectations | $ 365.00 |
Axon Enterprise
One of the warnings of advertising spending on AXON is that he still needs to employ important sales staff. One can argue that it works instead of the company’s need to announce. However, the company’s sales and marketing expenses amounted to only $ 109 million, which represents slightly more than 5 % of the revenues. This is relatively low. Axon sells a mixture of programs, weapons and other devices. Thus, it makes sense to compare it with both types of companies.
Software companies can see this sales and marketing costs It constitutes 20 % or more Of their revenues. The software formed 40 % of the total AXON revenue in the last quarter. This makes low sales and marketing low company to be particularly impressive. MCKINSEY & Company states that software companies are highly growing You can see these expenses represent 50 % or more revenues.
Axon still has an advantage over a company that sells weapons and Smith & Wesson Nasdak: Swbi. In the latest annual deposit, Smith & Wesson had the expenses of sales, marketing and distribution equal to about 8 % of the revenues.
Before you think about Reddit, you will want to hear this.
Marketbeat follows the best research analyst at Wall Street, the best performance in Wall Street and the stocks they recommend to their customers on a daily basis. Marketbeat has selected the five shares whom the top analysts quietly whispered to their customers to buy now before wiping the broader market … and it was not Reddit in the list.
While Reddit currently has a suspended classification among analysts, analysts from senior exporters believe that these five stocks buy better.
Show the five stocks here
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