The internet is now everywhere. It’s in our homes. It’s in our hands. It is even in our cars, on our wrists, and built into our appliances.

This widespread emergence of the internet has had a profound impact on advertising stocks. The name of the game in advertising is to put your product in front of as many eyeballs as possible, and hope that increased mind-share results in increased sales.

But all the eyeballs have shifted from traditional advertising channels (newspaper, magazines, and televisions) to digital advertising channels. All the ad dollars have followed the eyeballs, and digital advertising stocks have consequently roared higher.

This transition is far from over. Digital ad growth actually accelerated in 2017, implying that big growth is here to stay into the foreseeable future. That means that digital advertising stocks will keep rising.

But which types of advertising stocks will be the biggest winners over the next several years? Let’s take a deeper look at the 3 types of advertising stocks that have monster growth potential in the foreseeable future:

Advertising Stocks to Buy 1: America’s Digital Ad Giants

When it comes to advertising stocks with the biggest growth potential, the conversation unarguably begins with the titans of the secular growth digital ad industry: Facebook, Inc. (NASDAQ:FB) and Alphabet Inc (NASDAQ:GOOG).

As eyeballs have shifted from the traditional channel to the digital channel, most of those eyeballs have gone towards Facebook and Google. Facebook has 2.2 billion users on its main Facebook platform, and another 1.5 billion users on WhatsApp, 1.3 billion users on Messenger, and 800 million users on Instagram. Meanwhile, Google’s search engine processes 3.5 billion searches per day, Google-owned YouTube has 1.8 billion logged-in users, and Google-owned Gmail has more than a billion users.

Clearly, these two digital behemoths have all the eyeballs. And ad dollars follow the eyeballs. Consequently, all the ad dollars are flowing into Facebook and Google.

It is estimated that the two control between 60% and 75% of the U.S. digital advertising market, and between 25% and 40% of the global digital advertising market.

This growth isn’t going anywhere any time soon. Not only do Facebook and Google have the most reach in the digital advertising space, but they also have the most robust data-sets in the space. They subsequently leverage those data-sets to create the highest-quality targeted advertising solutions. Thus, by putting money into Facebook and Google, advertisers are not only getting the most reach, but the best targeting, too.

This is why advertisers hardly care about Facebook’s recent data-privacy concerns. Users haven’t left the platform, and the regulators haven’t cracked down. Thus, the digital landscape hasn’t changed at all, and money will keep flowing into Facebook and Google.

At present levels, Facebook and Google are both reasonably valued at just 26-times forward earnings. Google has some ongoing margin concerns which make the stock slightly less attractive, but both stocks look good in a multi-year window.

Advertising Stocks to Buy 2: China’s Red-Hot Digital Ad Players

Outside of Facebook and Google, the other place to find winning digital advertising stocks is across the Pacific Ocean.

China has been at the center of a huge boom in consumerism. The country’s middle-class is finally urbanizing en masse, and that is creating huge growth in things like commerce, technology, and travel. The end result is that China’s consumer landscape is starting look more and more America-like everyday.

One of the best ways to invest in the boom is by putting money to work in China’s digital advertising giants. But which ones are the best? China makes it easy because the country has its own version of each American-based tech company.

Google? China has Baidu Inc (ADR) (NASDAQ:BIDU).

Facebook? China has TENCENT HOLDING/ADR (OTCMKTS:TCEHY).

Twitter Inc (NYSE:TWTR)? Snap Inc (NYSE:SNAP)? Amazon.com, Inc. (NASDAQ:AMZN)? Match Group Inc (NASDAQ:MTCH)?

China has Weibo Corp (ADR) (NASDAQ:WB), Momo Inc (ADR) (NASDAQ:MOMO), Alibaba Group Holding Ltd (NYSE:BABA), and more.

Each of these companies has robust exposure to the secular growth narrative that is China’s digital advertising market. While this market is quite big, the consumerism boom in China is relatively nascent (China per capita spend is a fraction of America’s per capita spend). Thus, as consumerism continues to grow in China, the digital advertising market will grow, too.

The valuations on these China digital advertising stocks are quite reasonable. BABA trades at 30-times forward earnings, while revenue growth last quarter was over 60%. BIDU stock trades at 24-times forward earnings for revenue growth that was over 30% last quarter.

This “big growth, relatively discounted valuation” is a consistent theme across China advertising stocks. As such, considering growth will remain big into the foreseeable future, these digital ad stocks should be big winners over the next several years. 

Advertising Stocks to Buy 3: Traditional Ad-Supported Companies Making A Big Pivot

Digital ad companies won’t be the the only advertising winners over the next several years. Indeed, some traditional ad-supported companies are pivoting into the digital advertising space, and will make a big comeback over the next several years.

In saying this, the two companies that come to mind are Walt Disney Co (NYSE:DIS) and AT&T Inc (NYSE:T).

Disney has been killed by cord-cutting. A big part of the company’s business comes from advertising revenues through its media channels, like ABC, ESPN, and Disney Channel. But there has been a mass exodus of viewership from those channels recently. As such, Disney’s Media Networks business has been adversely impacted.

But that isn’t the end of the story.

Disney is prepping a huge pivot into streaming. The first part of the pivot came this past spring, with the launch of ESPN+, a paid streaming version of ESPN. The second part of the streaming pivot will come next year, with the launch of a Disney streaming service.

Considering Disney’s robust slate of content from Marvel to Pixar to LucasArts, this streaming service will likely have huge demand. This huge demand will flip the cord-cutting narrative at Disney on its head, and turn it into a streaming growth narrative. When that happens, the cheaply-valued Disney stock (14-times forward earnings) could soar.

AT&T is undergoing a similar transition. The company continues to get killed in its linear television and wireless businesses due to cord-cutting. But AT&T’s DirecTV Now streaming service continues to gain traction.

Over time, more and more resources will be dedicated to DirecTV Now, and money flowing out of the company’s traditional television business will flow into DirecTV Now. At present levels (<10-times forward earnings and >6% dividend yield), AT&T stock isn’t priced for this transition to play out favorably. As such, the upside opportunity looks compelling.

As of this writing, Luke Lango was long FB, GOOG, BIDU, TCEHY, AMZN, MOMO, BABA, DIS, and T.