The US advertising industry expects stronger growth in 2026. The Interactive Advertising Bureau (IAB) raised its full year spending growth forecast to 12.3%. The revised projection, announced on September 10, exceeds its January forecast of 9.5% by 2.8 percentage points.
The IAB’s September 2026 Outlook Study points to strong first half performance, major sporting events and improving economic confidence. The research gathered insights from more than 200 brand and agency advertising decision makers.
The updated outlook signals renewed confidence across the advertising sector. However, marketers still face challenges involving consumer spending, campaign performance and changing digital discovery habits.
Major Events and Digital Channels Drive Growth
The Winter Olympics and FIFA World Cup helped boost advertising demand during 2026. These events gave brands opportunities to reach large audiences through television, streaming services, social networks and digital campaigns.
Furthermore, advertisers continue to invest in channels that offer precise audience targeting and measurable results.
The IAB’s updated projections show the following expected year over year growth rates for 2026.
- Social media advertising is projected to grow 16.5%, up from 14.6% in January.
- Connected television advertising could increase 15.6%, compared with the earlier estimate of 13.8%.
- Commerce media spending is expected to rise 13.6%, up from 12.1%.
- Paid search advertising is projected to grow 8.1%.
- Podcast advertising could increase 8.7%.
- Linear television advertising is forecast to decline 1.5%.
These figures highlight the continued shift toward digital platforms. Meanwhile, traditional television faces pressure as advertisers explore streaming services and other digital alternatives.
Artificial Intelligence Changes Advertising Strategies
Artificial intelligence is becoming increasingly important to marketing teams. Consumers now use conversational AI tools to discover products, compare brands and evaluate purchasing options.
The IAB study found that 44% of advertising buyers identified changing consumer behaviour, including AI driven search, as their leading media investment challenge. Additionally, 76% reported a greater focus on optimizing content for AI generated answers. Another 72% increased their attention to large language models.
These developments are changing how companies approach online visibility. Brands must consider their traditional search rankings and their presence in AI generated answers.
Moreover, 86% of surveyed buyers said they had changed or expected to change their media measurement approaches over the following 12 months. They cited conversational AI tools and AI agents as key reasons.
Consequently, businesses may need to combine traditional performance indicators with measures of brand visibility, referral traffic and customer engagement across AI powered discovery platforms.
Customer Acquisition Returns to the Forefront
The stronger spending outlook also reflects advertisers’ renewed focus on attracting new customers.
According to the IAB, customer acquisition ranked as a priority for 63% of surveyed buyers. That figure represents a nine percentage point increase since January. Brand equity ranked as a priority for 43%, up six percentage points over the same period.
These findings suggest that businesses are balancing immediate sales objectives with long term brand building.
However, consumers remain selective about their spending. Price sensitivity and cheaper alternatives can encourage shoppers to switch brands. Advertisers must therefore demonstrate clear value while maintaining customer trust.
Companies reviewing their marketing budgets can use this opportunity to refine audience targeting, improve creative quality and identify channels that generate meaningful business outcomes.
What Businesses Should Know
The revised US ad spend forecast offers useful signals for companies planning their remaining 2026 marketing investments. Social media, connected television and commerce media show stronger projected growth than several other advertising formats.
Nevertheless, market growth does not guarantee better results for every advertiser. Campaign performance depends on audience relevance, competition, creative quality and conversion rates.
Businesses should regularly review advertising costs, customer acquisition expenses and return on investment before increasing spending. They should also examine how search engines and AI tools present their websites, products and digital content.
Additionally, marketing teams can work closely with technology, sales and finance departments. This collaboration helps connect advertising activity with revenue performance and broader business objectives.
As digital platforms evolve, companies need reliable measurement, relevant messaging and strong customer experiences. These priorities can help marketers respond to changing market conditions.
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