Emerging from a year of contrasting economic narratives, WPP Media’s This Year Next Year (TYNY) Global End-of-Year advertising forecast paints a clear picture of a global advertising market defying initial concerns, showcasing remarkable resilience and an upwardly revised outlook for 2026.
This is largely attributed to trade tariff outcomes proving more favorable than expected and the AI investment boom. The report underscores the advertising industry's resilience amidst economic and technological shifts, projecting robust growth.
The updated forecast projects global advertising revenue will grow 8.8% (excluding U.S. political advertising) in 2025, reaching $1.14 trillion. This momentum is set to continue into 2026, with an anticipated 7.1% growth (excluding U.S. political advertising). Over a five-year period, a compound annual growth rate (CAGR) of 6.3% is expected, reflecting sustained expansion.
Forces of creative destruction
The report highlights a period of significant transformation within the industry, characterized by Joseph Schumpeter’s "creative destruction." Streaming video continues to gain ground on linear television, retail media captures budget from traditional digital channels, and AI-powered answer engines are beginning to reshape search behavior. Concurrently, creator-driven content consistently displaces professionally produced media, forcing a re-evaluation of established models.
AI stands as a primary catalyst for this disruption, influencing content creation, media planning, measurement, and consumer interaction. The advertising industry, with its prior integration of machine learning, is well-positioned to adapt to these changes.
The report builds on the introduction of "Intelligence" as a new category for what was previously "search” and introduces new forecast categories. These include gaming, financial services media networks, and travel media networks, acknowledging the broadening landscape of advertising sellers and platforms. This reflects a continuous adaptation to an industry where a diverse range of global companies now engage in advertising sales.
