Observed Signal · May 27, 2026 · Industry Forecast · Source: VideoWeek · Impact: 4/5 · Sentiment: Positive
Dentsu: 75% of Ad Spend Algorithm-Driven by 2028
Dentsu published its mid-year global advertising spend forecast on 2026-05-27, cutting its 2026 growth view slightly to 5.0% (from a prior 5.1%) and forecasting 5.5% growth in 2027. The agency says digital channels account for the majority of investment (69% across 56 markets) and expects video growth to match overall ad growth in 2026 (+5.1%), with Connected TV up 11.5% and digital video up 8.7%. Dentsu forecasts that by 2028, 75% of all ad spend will be algorithm-driven, driven by platform modelling and programmatic tools. The report cites economic uncertainty from geopolitical tensions but notes ad growth remains well above the IMF’s 2026 GDP forecast of 3.1%.
Major agency forecast quantifies a large shift toward algorithmic/programmatic spending and provides market growth benchmarks (CTV, digital video, retail media) that influence media planning, platform strategy and vendor roadmaps.
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Key Takeaways & Evidence Grounding
- Dentsu forecasted global ad spend growth of 5.0% in 2026 and 5.5% in 2027 (mid-year forecast).
- Dentsu revised down its 2026 growth estimate from 5.1% (previous December forecast) to 5.0%.
- Dentsu predicts that 75% of all ad spend will be algorithm-driven by 2028.
- Across 56 markets, digital channels account for 69% of total ad investment according to Dentsu.
- Dentsu expects total video ad spend to rise 5.1% in 2026; Connected TV +11.5%, digital video +8.7%, and linear TV to remain flat.
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