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Oracle (ORCL) Aids Reddit Advertisers to Avoid Unsafe Content

Zacks Equity Research

Oracle’s ORCL Data Cloud capabilities were recently selected by Reddit to empower its advertisers with brand safety control tools on a real-time basis.

Primarily, Oracle’s Contextual Intelligence will be integrated into the Reddit platform. The solution will enable Reddit’s advertisers to analyze and review the dynamic user-generated content (UGC).

Moreover, advertisers can categorize the content to evaluate the scale and scope of the ad campaigns on the platform with Oracle’s solution.

This integration provides advertisers with effective brand safety measures ensuring moderation by avoiding unsafe content and in turn enhancing engagement on the Reddit platform.

Reddit platform offers individuals a platform to build network of communities to share and refer to experiences pertaining to their interests. The platform boasts of approximately 330 million users worldwide on a monthly basis.

Given the strength in users, integration with Reddit platform provides Oracle’s Contextual Intelligence with considerable exposure in the digital advertising and content optimization domains.

Strength in Oracle Data Cloud Services: A Key Catalyst

Automation of ads across Internet platforms is crowding web pages. In this context, there have been instances wherein ads have been wrongly placed, damaging the brand’s reputation.

In a bid to avoid such circumstances, the U.K.-based startup, Grapeshot, designed Contextual Intelligence Platform, to provide marketers with tools to control ad content and target audience effectively.

Oracle acquired Grapeshot in May 2018 with an aim to address the growing need of regulating Internet content amid rising popularity of social media. Post acquisition, Oracle’s Contextual Intelligence suite of solutions form an important part of Oracle Data Cloud. Moreover, the offering is integrated with Moat Measurement to enhance advertising effectiveness.

Notably, eMarketer expects digital ad spending to hit $327.28 billion in 2019, indicating an improvement of 17.1% year over year. The secular growth in digital ad spending enhances the prospects of the Oracle’s Contextual Intelligence offering.

We believe adoption of Oracle Data Cloud services, which offer marketers the required data and tools to strengthen their end-to-end marketing processes, bodes well for the company’s top line. Moreover, synergies from other acquisitions comprising Moat, Crosswise, AddThis, BlueKai, and Datalogix, have strengthened the platform.

Oracle Corporation Revenue (Quarterly)

Oracle Corporation Revenue (Quarterly)

Oracle Corporation revenue-quarterly | Oracle Corporation Quote

Wrapping Up

Oracle is leaving no stone unturned to enhance its Data Cloud platform with innovative capabilities via acquisitions and increasing investments in research and development (R&D). It is benefiting the company to expand its customer base and opening new avenues to enhance business strategically.

However, growing operating expenses are likely to weigh on margins at least in the near term. Moreover, consolidating applications market is fueling competition in the software sector, which is not conducive to the Oracle’s growth prospects.

Zacks Rank & Key Picks

Oracle carries a Zacks Rank #4 (Sell).

A few better-ranked stocks worth considering in the broader sector are eGain Corporation EGAN, Rosetta Stone Inc. RST and j2 Global, Inc. JCOM, each sporting Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for eGain, Rosetta Stone and j2 Global is pegged at 30%, 12.5% and 8%, respectively.

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