Global advertising expenditure is forecast to grow by 11.9% to $1.34 trillion in 2026, despite mounting cost-of-living pressures and cautious consumer spending, according to the latest WARC Media Global Ad Spend Forecast.
The forecast, released on 8 October 2026, follows consecutive annual growth of 10.0% in 2024 and 2025. Advertising investment continues to rise amid geopolitical uncertainty, supported by substantial corporate investment in artificial intelligence (AI) and major events, including the Olympics, FIFA World Cup and US mid-term elections.
However, WARC warned that further escalations in global tensions could pose downside risks to the advertising market, despite the economy's resilience so far.
Suzy Young, Head of WARC Media Data, says: "These are unusual times for advertising. Investment is accelerating even as many consumers face cost-of-living pressures and become more cautious with spending. This apparent contradiction reflects an increasingly uneven economy, where growth – particularly from the AI boom – is benefiting some companies, sectors and consumers more than others."
Social Media Leads Global Advertising Growth
Social media is expected to record the strongest growth among major advertising channels in 2026, with spending projected to increase by 21.3% to $394.6 billion. The channel is on course to surpass $500 billion in advertising expenditure by 2028.
Social media, search and retail media remain among the largest destinations for advertising investment. Combined, the three channels are expected to account for 66.4% of global advertising spend in 2026, rising to 70.0% by 2028.
Other digital advertising channels are also projected to record double-digit growth this year. Video-on-demand (VOD) advertising is forecast to rise by 15.1% to $48.4 billion, while retail media spending is expected to increase by 14.3% to $202.1 billion.
Search advertising is projected to grow by 14.2% to $295.7 billion, while digital out-of-home (OOH) advertising is expected to increase by 13.7% to $21.7 billion.
According to WARC, performance-driven advertising channels continue to benefit from their ability to respond quickly to changing market conditions as businesses adapt to persistent economic uncertainty.
Technology, Travel and Automotive Drive Advertising Growth
Technology and electronics is forecast to be the fastest-growing product category for advertising in 2026, with spending expected to rise by 20.7% compared with 2025.
Travel and transport follows with projected growth of 19.3%, while automotive advertising expenditure is expected to increase by 17.8%.
Social media is expected to capture 40.2% of total advertising spending by technology and electronics companies in 2026, underlining the channel's growing importance to brands competing for consumer attention.
Global Advertising Growth to Moderate in 2027
WARC expects global advertising expenditure growth to slow to 8.4% in 2027, taking total spending to $1.46 trillion. The moderation reflects tougher year-on-year comparisons and a return towards more normal growth following the exceptionally strong performance of recent years.
The market is forecast to expand by a further 7.9% in 2028, reaching $1.57 trillion. This would make global advertising expenditure approximately 2.3 times its 2019 level.
Artificial Intelligence Creates New Advertising Opportunities
Artificial intelligence is increasingly shaping global advertising growth, both as a driver of corporate investment and as a tool for improving campaign performance.
New technology businesses are spending heavily on advertising to acquire customers and establish their brands, while established companies are increasing investment to remain competitive in an increasingly crowded marketplace.
At the same time, AI-powered tools are improving audience targeting, creative asset production and campaign optimisation, helping advertisers enhance returns on investment and supporting further spending.
Generative search and AI assistants are also creating new opportunities for advertising. As consumers increasingly use these technologies to discover products and make purchasing decisions, advertising investment is expected to follow, potentially reshaping how audiences encounter brands and how businesses allocate their marketing budgets.
Alphabet, Amazon and Meta Strengthen Advertising Dominance
Alphabet, Amazon and Meta are expected to account for a combined 59.7% of global advertising expenditure outside China in 2026, equivalent to $659.6 billion.
Their combined share is projected to increase to 61.5% in 2028, when their advertising revenues are expected to reach $804.1 billion.
The forecast highlights the growing concentration of advertising investment among major digital platforms, as businesses continue to prioritise channels that offer extensive audience reach, targeted advertising and measurable campaign performance.
Advertising Spending Highlights Global Market Differences
Advertising expenditure per capita continues to vary significantly across global markets, reflecting differences in economic development, consumer spending power and advertising investment.
The United States is forecast to record the highest spending among the markets highlighted by WARC, at $1,395 per capita in 2026. The United Kingdom follows at $935, while Austria and Switzerland are projected to record $850 and $825 per capita, respectively.
By comparison, advertising expenditure per capita is forecast at $170 in China, $110 in Brazil and just $13 in India.
Despite their lower per-capita spending, China, Brazil and India have substantial consumer populations, presenting considerable opportunities for advertising growth as their economies and consumer markets develop.
The projections point to an advertising industry undergoing significant transformation, with digital platforms, artificial intelligence and performance-led marketing continuing to shape investment decisions even as economic pressures influence consumer behaviour.
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