The global advertising market is regaining strength faster than earlier projections, as new insights from WPP show a more resilient industry shaped by evolving consumer behaviour, expanding digital formats and accelerating artificial intelligence adoption.

Moreover, the company’s updated analysis indicates that despite tariff-related disruptions and wavering economic sentiment, brands continue to pour resources into emerging channels that deliver sharper, more targeted engagement.

Upward Revisions for 2025 and 2026

WPP now projects that global advertising revenue will rise 8.8 percent to 1.14 trillion dollars this year, ahead of its earlier 6 percent estimate.

Furthermore, this renewed momentum also extends into 2026, when the company expects a further 7.1 percent increase, supported by the Winter Olympics and the FIFA World Cup, two events that traditionally stimulate substantial marketing activity.

Shifting Budget Priorities

WPP’s analysis shows clear shifts in where budgets are flowing. Ad-supported streaming, retail media, creator platforms and AI-driven intelligence tools have moved to the centre of brand strategy.

Consequently, reflecting these changes, the company broadened its category definitions to capture how marketers are allocating spend across entertainment, commerce and technology-driven ecosystems.

Alignment With Global Forecasts

The revised outlook aligns with other global forecasters who have reported fewer tariff-related setbacks than many feared.

Although trade policies have created a more cautious spending climate, brands are still directing investment toward fast-growing channels such as retail media and gaming to reach value-conscious consumers who increasingly favour digital environments over traditional options.

AI at the Core of  Transformation

Artificial intelligence remains at the heart of this transformation.

According to WPP, AI is reshaping content creation, media planning, measurement and consumer experience design.

In fact, in recognition of its expanding influence, the company replaced its “search” category with “intelligence,” reflecting AI’s deeper integration across the digital economy.

WPP has also embedded AI into its own long-term strategic agenda.

Content-Led Advertising Dominates Global Spend

Content-led advertising continues to dominate global spending, generating an estimated 663.5 billion dollars in 2025, or 58 percent of the total market.

Within this landscape, gaming stands out as the fastest-growing segment, expected to jump nearly 30 percent to 8.5 billion dollars.

While still a small portion of the content category, its rapid rise signals increasing commercial relevance for brands seeking diversified engagement channels.

Commerce-Driven Advertising Surges Past TV

WPP also highlights a major shift for 2025: commerce-driven advertising, propelled by rapid growth in retail media, is on track to surpass traditional TV for the first time, reaching 178.2 billion dollars worldwide.

Notably, China leads this expansion with projected revenue of 76.3 billion dollars, followed by the United States at roughly 58 billion dollars.

However, WPP cautions that retail media could soon confront consolidation and competitive pressure from AI-enhanced alternatives, especially as financial services and travel media networks adopt similar models.

Outlook for 2026 and Beyond

Looking beyond this year, WPP expects 2026 to sustain much of the market’s current strength, although growth will soften by nearly two percentage points.

Even so, even with major global sporting events and a heated U.S. midterm election cycle ahead, the company excludes American political advertising from its top-line forecasts.

Conclusion: A Market Steadying Through Change

Overall, WPP’s updated projections reveal a market holding steady through economic uncertainty while embracing new technologies and shifting consumer pathways.

With this in mind, with AI-powered platforms, gaming and retail media accelerating global investment flows, the advertising industry enters its next cycle with renewed energy and widening opportunities.