Global advertising expenditure is projected to reach $1.34 trillion in 2026, representing an 11.9 per cent increase from the previous year, as corporate investment in artificial intelligence and major sporting and political events fuel spending despite rising living costs and geopolitical uncertainty.
The latest forecast from WARC Media points to continued expansion in the global advertising market, following growth of 10 per cent in both 2024 and 2025. However, the organisation warned that an escalation in international tensions could threaten the outlook.
The Brandspur Brand News Desk reports that social media is expected to record the strongest growth among major advertising channels in 2026, reflecting the increasing importance of digital platforms to companies seeking to reach consumers. Spending on social media advertising is projected to climb by 21.3 per cent to $394.6 billion.
Video-on-demand advertising is expected to grow by 15.1 per cent to $48.4 billion, while retail media spending is forecast to rise by 14.3 per cent to $202.1 billion. Search advertising is projected to increase by 14.2 per cent to $295.7 billion, with digital out-of-home advertising expected to grow by 13.7 per cent to $21.7 billion.
Together, social media, search and retail media are forecast to account for 66.4 per cent of worldwide advertising expenditure in 2026. Their combined share could rise to 70 per cent by 2028, underscoring the growing concentration of advertising budgets in digital channels.
Technology and electronics are expected to lead growth among product categories, with advertising expenditure projected to increase by 20.7 per cent in 2026. Travel and transport follows with an anticipated rise of 19.3 per cent, while automotive advertising is forecast to expand by 17.8 per cent.
Artificial intelligence is playing a growing role in the market, both as a source of advertising demand and as a tool for campaign development. Technology companies are investing heavily to attract customers to AI products, while other businesses are using AI to improve audience targeting, generate creative content and optimise advertising campaigns.
The rise of generative search tools and AI assistants could also change how consumers discover products and brands, potentially influencing where companies allocate future advertising budgets.
The market remains heavily concentrated among major technology platforms. Alphabet, Amazon and Meta are forecast to capture a combined 59.7 per cent of global advertising expenditure outside China in 2026, equivalent to $659.6 billion. Their combined share is projected to reach 61.5 per cent, or $804.1 billion, by 2028.
Despite the strong outlook for 2026, WARC expects growth to moderate to 8.4 per cent in 2027, when global advertising spending is projected to reach $1.46 trillion. A further 7.9 per cent increase in 2028 would take the market to $1.57 trillion, more than twice its 2019 size.
The expansion is unfolding against an uneven economic backdrop. While businesses benefiting from the AI boom are increasing their advertising budgets, many consumers continue to face cost-of-living pressures and are becoming more cautious about spending.
For Nigerian businesses, the global figures offer insight into where advertising investment is heading, particularly towards social media and other digital channels. However, the international forecast does not establish how much Nigeria’s own advertising market will grow, leaving local spending trends to be assessed separately.
