Mumbai: Global advertising expenditure is set to cross the $1 trillion mark for the first time in 2026, driven by accelerating digital transformation, AI-powered media, and event-led spending, according to the latest Dentsu Global Ad Spend Forecasts. The report signals a defining shift toward what the agency calls the Algorithmic Era, where artificial intelligence and platform-driven automation increasingly determine consumer attention and brand visibility.
Despite geopolitical tensions, trade disruptions, and economic uncertainty, global ad spend is projected to grow 5.1% in 2026, outpacing the 3.1% global GDP growth anticipated for the year. Major global events—including the Olympic Winter Games, FIFA World Cup, and US midterm elections—will inject significant momentum into media investment cycles.
APAC and Americas Lead Growth as India, Brazil Surge Ahead
Regionally, Asia-Pacific (APAC) remains the fastest-growing market with a projected 5.4% increase, fuelled by China’s digital expansion and India’s robust media marketplace. India is forecast to grow a striking 8.6%, led by retail media and short-form video, while China is expected to maintain a healthy 6.1% increase driven by lifestyle platforms and short-form video consumption.
The Americas will reach $460.5 billion in spend (+5.2%), anchored by the United States’ sizeable digital ecosystem, strong CTV penetration, and heightened political advertising. Brazil emerges as the fastest-growing major market globally with an impressive 9.1% jump, powered by TV, search, and social media investment uplifted by electoral and sports-led spending.
In EMEA, advertising is set to rise 4.2%, with the UK remaining Europe’s standout performer at 5.7% growth amid surging BVOD and digital channels. Italy and France are expected to benefit from global sports events hosted in the region.
Digital Ad Spend Nears 70% Share as Retail Media Outpaces All Channels
Digital media continues to dominate global advertising strategies, forecast to grow 6.7% in 2026 and capture 68.7% of global spend. The expansion aligns with an industry-wide pivot toward automation, data-led buying, and algorithmic optimization.
Retail media is set to be the standout performer—growing 14.1% and on track to overtake paid search by 2028 as the world’s second-largest digital channel. Brands are increasingly drawn to retailers’ high-quality shopper data and closed-loop measurement capabilities, a model that has made advertising Amazon’s fastest-growing business line.
Online video (+11.5%) and social media (+11.4%) will see accelerated demand amid the global boom in short-form video engagement and influencer-driven commerce. With 49% of CMOs planning to increase influencer marketing spend, creators are becoming central to modern media planning.
Paid search growth moderates to 3.1% as generative AI reshapes search behaviours. The report notes that AI-augmented search and LLM assistants may soon become the next major digital ad frontier, pushing brands toward Search Experience Optimization (SXO) as a new competitive discipline.
CTV Expands as Broadcast TV Stabilizes Before Renewed Declines
Television remains a key driver of collective cultural moments, but its internal dynamics are shifting. CTV is forecast to grow 9.5%, powered by ad-supported streaming tiers and integrated programmatic buying environments, including Amazon DSP’s expanded access to Disney, Netflix, and Roku inventory.
Broadcast TV, after a 4.2% decline in 2025, is expected to temporarily stabilise at 0% growth in 2026 due to the Olympics and FIFA World Cup. However, structural pressures are expected to return, with the medium projected to decline again from 2027 onwards.
OOH, Audio and Cinema Find Growth Through Digitization and Cultural Fandoms
Beyond digital, several traditional channels are quietly reinventing themselves.
- OOH is forecast to grow 4.1%, led by 7.2% growth in digital OOH, which benefits from programmatic trading and data-driven contextual targeting.
- Audio advertising will see modest growth of 0.7%, though digital audio—which includes podcasts and streaming—will rise 5.5% as dynamic ad insertion becomes more sophisticated.
- Cinema, buoyed by the post-pandemic resurgence in moviegoing and the rise of video game–based franchises, is projected to grow 2.2% in 2026.
Meanwhile, print continues its long-term decline (-3.0%), even as digital print formats gain incremental traction.
AI and Agentic Workflows Become Central to Marketing Strategy
A central theme of the Dentsu report is the industry’s accelerating adoption of agentic AI—autonomous, multi-step AI systems designed to streamline workflows, optimize performance, and personalize content at scale.
With 71.6% of all ad spend expected to be algorithm-driven in 2026, CMOs are prioritizing:
- Understanding generative AI use cases
- Deploying AI agents for media and operational tasks
- Using AI for analytics and measurement
- Ensuring strong governance and human oversight
Dentsu warns that unchecked proliferation of siloed AI agents could lead to operational inefficiencies, urging brands to adopt structured frameworks for AI deployment.
Messaging Platforms: The Next Frontier for Media, Commerce and Service
A major emerging opportunity highlighted is business messaging, especially in Western markets where platforms like WhatsApp are introducing new ad formats. As messaging apps evolve toward “super app” functionality, brands are expected to unify media, commerce, and customer service through conversational journeys that are more integrated and frictionless.
From in-store QR-to-chat experiences to AI-enabled product finders, messaging is poised to become a central interface for consumer engagement in 2026 and beyond.
Dentsu’s December 2025 forecast ultimately positions 2026 as a pivotal year where technology, data, and cultural attention collide to reshape the advertising economy. With total ad spend heading toward $1.15 trillion by 2028, the industry’s growth trajectory is increasingly tied to its ability to adopt AI, navigate platform ecosystems, and deliver relevance in an algorithmically mediated world.
