Global advertising spend is projected to surpass the $1 trillion milestone for the first time in 2026, reaching $1.04 trillion with 5.1% growth, down from 5.9% in 2025, according to Dentsu's Global Ad Spend Forecast.
Asia-Pacific remains the fastest growing region, driving +5.4% growth to $376.4 billion in 2026, outpacing the Americas (+5.2%) and Europe, the Middle East, and Africa (+4.2%). This regional momentum reflects emerging markets expanding ad spend at more than twice the pace of advanced economies. APAC's strong performance stems from rapid digitalisation, policy support, and cultural events, positioning it as the key contributor to the global trillion-dollar threshold.
China is set to rise 6.1% in 2026 following a robust 7.6% increase in 2025. Government subsidy policies stimulating consumption have seen double-digit expansions in cinema, social, and retail media, while 2026 growth will hinge on larger investments in short-form video and lifestyle platforms. These channels, dominant in China's super-app ecosystem, demonstrate the algorithmic precision that APAC brands leverage for hyper-targeted engagement.
India is set to speed up even more, with ad market expansion hitting 8.6% in 2026 after 7.8% in 2025, bolstered by major events like the ICC Men's T20 Cricket World Cup and Indian Premier League (IPL) 2026. Digital spend surges 19.2%, propelled by retail media and short-form video, as brands capitalise on India's youthful demographic and e-commerce boom. This positions India not just as APAC's fastest grower but a blueprint for how sporting mega-events and platform innovations can supercharge ad revenues amid economic tailwinds.
More developed markets show mixed results. Australia grew 4.5% in 2025 thanks to the federal election, easing to 4.1% next year with a lift from events like the Olympic Winter Games and FIFA World Cup. Japan rose 3.7% this year on digital, out-of-home (OOH), radio, search across ages, and social videos. It dips to 2.9% in 2026 in its steady market.
Algorithmic era redefines growth
The 'Algorithmic Era' is taking centre stage, with algorithm-powered ads making up 71.6% of global spend in 2026 and rising to 76% by 2028. APAC is ahead, thanks to super-apps, retail media, and closed systems in China, India, and Southeast Asia. These shape how people find products or viral hits, giving local brands a real advantage.
Digital leads at 6.7% growth to 68.7% of total spend. Retail media shines with 14.1% uptick, using shopper data and direct measurement, especially strong in APAC e-commerce. Online video hits 11.5%, social 11.4%, and programmatic takes over 80% of digital.
Traditional channels grow modestly: TV 2.4%, OOH 4.1%, cinema 2.2%. Print drops 3%, showing the switch to targeted options. APAC highlights the gap: Japan's OOH holds firm against China's retail surge, while India's event-driven TV holds firm alongside digital surges.
CMOs are focusing AI efforts on media. Priorities include understanding generative AI use cases, opportunities, and risks (34%); developing AI agents and technologies (31%); and harnessing AI for data analysis and reporting (31%). For APAC marketers, this translates to mastering platform-specific algorithms, be it Douyin's short-form feeds or Instagram Reels in India, to design campaigns that thrive in closed environments rather than open-web fragmentation.
Tech sector surges
Technology emerges as the fastest-growing sector at +10.3% in 2026, propelled by AI-led product launches and innovations in connected ecosystems, a narrative tailor-made for APAC's tech hubs from Shenzhen to Bengaluru. Government, social, political, and organisational categories follow closely at +10.1%, amplified by election cycles in India and Australia, alongside policy-driven comms in China. Beverages round out the podium at +10.1%, leveraging sponsorships and lifestyle integrations.
Major 2026 events supercharge these dynamics: the Olympic Winter Games, FIFA World Cup, and extensive election calendars promise cross-channel audience spikes. Yet consumer habits extend beyond live sports, 40% of global audiences watched a sports docuseries in the past month, while Japanese anime commands weekly viewership from half of Gen Z worldwide, surpassing US Gen Z allegiance to major leagues. APAC's J-content export prowess opens sponsorship avenues from K-dramas to cricket docuseries, with 42% of CMOs planning boosts to original content production.
This cultural canvas empowers brands to meet audiences in emergent moments, blending live events with shoulder programming. In APAC, where Gen Z drives trends, anime's global pull, rooted in Japanese production, pairs with IPL docu-series and short-form sports clips to diversify beyond traditional broadcasts.
"Crossing the trillion-dollar threshold signals a structural shift in how growth is created. Media is now the front door to every brand and the most powerful system for driving relevance, creativity, and value at scale," says Will Swayne, Dentsu’s global practice president, media and integrated solutions. "In the Algorithmic Era, the brands that win will be those that understand how discovery and decision-making are shaped by algorithms and use media as a strategic engine to earn attention and build long-term advantage. 2026 rewards marketers who innovate with intent, design for outcomes, and meet people in the moments that matter."
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