Global advertising investment is set to surpass the historic $1 trillion mark in 2026, signalling a decisive transformation in how brands capture consumer attention in an increasingly automated media environment. According to the latest forecast from Dentsu, the industry is entering what it calls the Algorithmic Era, where artificial intelligence and platform automation actively determine media planning and brand visibility.

Despite ongoing geopolitical tensions, trade disruptions, and economic uncertainty, global ad spend is projected to grow 5.1 percent in 2026, comfortably outpacing the 3.1 percent expected rise in global GDP. Major events, including the Olympic Winter Games, the FIFA World Cup, and the United States midterm elections, will inject significant momentum into media investment cycles.

Regionally, Asia Pacific will lead growth with a 5.4 percent increase, driven by China’s expanding digital ecosystem and India’s dynamic media market. India stands out with 8.6 percent growth, fuelled by retail media expansion and short form video, while China is expected to post a solid 6.1 percent rise supported by lifestyle platforms and video engagement trends.

ALSO WATCH:MAGGI TALES OF RAMADAN

In the Americas, total spend will reach $460.5 billion, rising 5.2 percent, anchored by the United States’ deep digital penetration, strong connected TV adoption, and heightened political advertising. Brazil will emerge as the fastest growing major market globally at 9.1 percent, driven by television, search, and social media investment boosted by election and sports events.

In EMEA, ad spending is projected to increase 4.2 percent, with the United Kingdom leading Europe at 5.7 percent growth thanks to surging broadcaster video on demand and digital channels, while Italy and France gain additional boosts from major regional sports events.

Digital media will dominate global budgets, projected to grow 6.7 percent in 2026 and capture 68.7 percent of total ad spend. Retail media is set to surge 14.1 percent, poised to surpass paid search by 2028 as the second largest digital channel, driven by high quality shopper data and closed loop measurement.

Online video will climb 11.5 percent and social media 11.4 percent, both propelled by short form video and influencer commerce, while 49 percent of CMOs plan to increase influencer marketing investment. Paid search growth moderates to 3.1 percent as generative AI reshapes search behaviour and drives the rise of Search Experience Optimisation.

Television remains central to collective culture, with connected TV projected to grow 9.5 percent thanks to ad-supported streaming and programmatic buying, while broadcast TV stabilises at 0 percent growth in 2026 before expected declines resume.

Traditional channels also evolve: out of home advertising will rise 4.1 percent, led by 7.2 percent growth in digital OOH through programmatic and contextual targeting; audio gains 0.7 percent overall while digital audio expands 5.5 percent with dynamic ad insertion; cinema grows 2.2 percent amid post-pandemic recovery and video game–inspired franchises; print declines 3 percent even as digital formats gain traction.

WATCH ALSO:MARKETING EDGE ONTV

A key theme is agentic artificial intelligence, with 71.6 percent of ad spend expected to be algorithmically driven. CMOs are prioritising generative AI use cases, deploying AI agents across media workflows, strengthening analytics, and maintaining strong human oversight. Dentsu warns that uncoordinated AI adoption could create inefficiencies, urging structured governance.

Business messaging emerges as a major opportunity, particularly on platforms like WhatsApp, where brands can integrate media, commerce, and customer service.

From in-store QR to chat journeys to AI product discovery, messaging platforms are set to become central to consumer engagement in 2026 and beyond.

Overall, Dentsu’s December 2025 forecast positions 2026 as a pivotal year where technology, data, and culture converge to reshape advertising. With global spend projected to approach $1.15 trillion by 2028, the industry’s growth will hinge on its ability to adopt AI, navigate platform ecosystems, and deliver relevance in an increasingly algorithm-driven marketplace.