Global ad spend set to surpass US$1 trillion in 2026, APAC leads growth

Global advertising spend is on track to pass US$1 trillion for the first time in 2026, according to dentsu’s December 2025 Global Ad Spend Forecast. The projected 5.1% rise outpaces the expected 3.1% expansion of the global economy, underscoring the continued strategic importance of media investment despite ongoing macroeconomic volatility.

Dentsu reports that 86% of CMOs expect their budgets to increase over the next 12 months, with most viewing media as a direct driver of business growth. The optimism reflects steady resilience across both advanced and emerging markets, supported by easing inflation, accelerating AI adoption and ongoing investment in digital infrastructure.

Next year’s major global events - including the Olympic Winter Games, FIFA World Cup and the US midterm elections - are expected to deliver further incremental spend, creating strong conditions for brands looking to capture attention and build momentum in a high-demand media environment.

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APAC remains the growth engine

Asia Pacific region remains the fastest-growing advertising market, forecast to reach $376.4 billion in 2026, up 5.4% from 2025.

China’s ad spend is projected to grow 6.1%, driven by short-form video and lifestyle platforms, while India accelerates at 8.6%, fuelled by retail media and major sporting events such as the ICC Men’s T20 Cricket World Cup and IPL 2026. Australia is set for 4.1% growth, and Japan slows to 2.9%, yet APAC overall continues to expand its global share - expected to reach nearly 40% by 2028.

In the Americas, the US ad market is projected to reach $460.5 billion in 2026, with digital channels (particularly search, social, and streaming) driving double-digit growth. Brazil emerges as the most dynamic top-12 market, with 9.1% growth, supported by presidential elections and FIFA World Cup spending. EMEA markets are also on the rise, with the UK leading Europe at 5.7% growth, while Italy, France, and Germany see moderate acceleration through digital adoption and event-driven opportunities.

Digital and algorithm-driven advertising dominate

Digital advertising remains the primary growth engine, expected to account for 68.7% of total spend in 2026. Retail media is the fastest-growing digital segment for the fifth consecutive year, expanding 14.1% as brands leverage first-party shopper data and closed-loop measurement.

Online video and social media advertising continue to see strong acceleration at 11.5% and 11.4% respectively. Programmatic trading dominates digital, with 81.4% of digital spend expected to be programmatically traded.

Artificial intelligence is central to the advertising landscape. dentsu forecasts that 71.6% of ad spend will be algorithm-driven by 2026, rising to 76% by 2028. CMOs are prioritising AI to enhance efficiency, data analysis, and campaign performance, while also exploring the opportunities and risks of generative AI and agentic AI deployment.

Evolving channels and consumer engagement

Brands are increasingly engaging consumers through emerging content formats and channels. Sports docuseries, Japanese anime, microdramas, and influencer-led social commerce are capturing attention across demographics, particularly Gen Z. Business messaging platforms are gaining traction in Western markets, enabling brands to deliver integrated, conversational experiences across media, commerce, and customer service.

Television remains a powerful channel, with connected TV and sports programming driving both scale and precision. Meanwhile, print continues to decline, and out-of-home and audio advertising grow modestly, with digital formats expanding steadily.

In this “algorithmic era,” dentsu advises CMOs to adopt holistic strategies that integrate AI, programmatic media, data-driven measurement, and evolving content formats to capture consumer attention, drive engagement, and maintain competitive advantage.

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