Cramer's 'Mad Money' Recap: Bullish on Billboards

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Billboards are making a comeback, said Jim Cramer on "Mad Money" Tuesday, and he wants viewers to buy Lamar Advertising (LAMR).

Lamar has ad space on billboards, buses, bus shelters and benches -- all places you can't miss, Cramer noted. Because of the increase in the use of digital video recorders such as TiVo (TIVO), advertisers are moving away from TV advertising. Other forms of advertising, such as the Internet and billboards, are gaining share.

"You can't TiVo a billboard," he said.

Lamar is adding digital billboards, which allow it to show multiple ads on one space and should increase sales. And Nielson is coming out with a rating system for billboard advertising, Cramer said, which should make advertisers more comfortable as the can quantify the effectiveness of their ads.

In response to a question about fellow advertiser Clear Channel Outdoor (CCO), which went public last month, Cramer said the IPO pricing was disappointing, and he would avoid the stock. He would look to buy the shares around $16 or $17. Clear Channel Outdoor closed Tuesday at $18.87.

Commenting on Yahoo! (YHOO) and Google (GOOG), Cramer said both companies are seeing unwavering secular growth in advertising.

Marching Toward Marchex

Cramer is bullish on Marchex (MCHX) as a play on local Internet search. Marchex helps draw traffic to local businesses' Web sites by helping their ads appear at the top of search results. It also owns Web properties, including 98% of all U.S. zip codes with a dot-com or dot-net suffix.

Cramer is also a fan of Marchex's CEO, Russell Horowitz, who Cramer said is one of the early pioneers of the Internet.

Marchex' stock is expensive, trading at 10 times sales. But Cramer noted that TheStreet.com Internet Review author James Altucher believes Marchex could have triple-digit earnings growth in the next several years.