Key Points
- Global advertising is forecast to grow 11.9 percent to $1.34 trillion in 2026, according to WARC Media; the increase follows annual advertising spending growth of 10 percent in both 2024 and 2025.
- Social media advertising will grow 21.3 percent to $394.6 billion, the fastest increase among major advertising channels, while VOD and streaming platform spending is expected to increase 15.1 percent to $48.4 billion.
- Social media, search and retail media will account for 66.4 percent of global advertising spending this year, WARC says.
Global advertising spend is expected to increase nearly 12 percent this year, reaching $1.34 trillion as marketers direct more money toward social media, streaming video and performance-based advertising platforms, according to a new forecast from WARC Media.
In its Global Ad Spending Forecast for the third quarter (Q3) of the year, WARC said worldwide ad investment is expected to grow 11.9 percent in 2026, which follows annual ad spending increases of 10 percent over the past two consecutive years.
WARC attributed the increase partly to significant investment in artificial intelligence, along with advertising tied to the Winter Olympics, FIFA World Cup and U.S. midterm elections. That growth helped offset concerns by some marketers over global economic uncertainty, which had earlier caused some ad buyers to pull back on their spending.
Social media is expected to post the strongest growth among major advertising channels, increasing 21.3 percent to $394.6 billion this year. WARC expects social media advertising spending to exceed $500 billion by 2028. Earlier this week, social video juggernaut TikTok said it was opening its ad network to more third-party buyers in the United States, an aggressive move intended to help the platform better compete against YouTube.
Spending against streaming video platforms and other video on-demand services is projected to increase 15.1 percent to $48.4 billion. Retail media will grow 14.3 percent to $202.1 billion, while search advertising increases 14.2 percent to $295.7 billion. Digital out-of-home advertising is forecast to rise 13.7 percent to $21.7 billion.
Together, social media, search and retail media are expected to account for 66.4 percent of global advertising spending this year, increasing to 70 percent by 2028 — proving out the idea that marketers are increasingly attracted to platforms that offer measurable results and allow buyers to adjust their spending based on changing market conditions.
“These are unusual times for advertising. Investment is accelerating even as many consumers face cost-of-living pressures and become more cautious with spending,” Suzy Young, the Head of WARC Media Data, said in a statement on Thursday.
Technology and electronics companies are expected to increase advertising spending by 20.7 percent this year, the strongest growth among product categories. Travel and transportation spending will rise 19.3 percent, followed by automotive advertising at 17.8 percent.
WARC expects social media to capture 40.2 percent of technology and electronics advertising budgets.
The largest digital advertising companies continue to consolidate their market positions. Alphabet, Amazon and Meta are forecast to account for 59.7 percent of global advertising spending outside China this year, representing $659.6 billion.
Their combined market share is projected to increase to 61.5 percent by 2028, equivalent to $804.1 billion.
WARC identified artificial intelligence as an increasingly important contributor to advertising growth, both through spending by technology companies and the development of new advertising opportunities within AI-powered search and assistant products.
Looking ahead, WARC expects global advertising spending growth to moderate to 8.4 percent in 2027, reaching $1.46 trillion. Spending is forecast to increase another 7.9 percent to $1.57 trillion in 2028. That would make the global advertising market approximately 2.3 times larger than it was in 2019, according to WARC.
