Jianna Caronan, contributor to IAB US News, reports that the Interactive Advertising Bureau (IAB) raised its 2026 U.S. advertising spend forecast to 12.3% year-over-year growth. This figure reflects a 2.8 percentage point increase from the 9.5% projection issued in January 2026.
A robust first half of the year drove this update. High-profile events like the Winter Olympics and the FIFA World Cup fueled the momentum. The IAB 2026 Outlook Study, based on a survey of over 200 brand and agency investment decision-makers, indicates that easing macroeconomic concerns bolstered market confidence.
Growth Strategies Overtake Retention
Advertiser priorities have shifted toward aggressive growth. Customer acquisition became the top priority for 63% of respondents, marking a nine-point jump since January 2026. While retention dominated previous years, the current market now favors new customer capture.
Changing consumer behavior drives this shift. Persistent inflation makes shoppers more selective and willing to trade down to private-label brands. Chris Bruderle, Vice President at IAB, noted that while consumer discernment creates challenges, it allows brands to capture undecided customers willing to switch loyalty for better value.
AI-Driven Search Reshapes Brand Discovery
Artificial Intelligence now alters how consumers find products rather than just optimizing backend processes. The study highlights that 44% of buyers consider adapting to AI-driven search their primary investment challenge.
When consumers are considering their next purchase, the brands that win will be connecting with them at the right time, in the right context, and with a compelling message.
Advertisers expressed concern regarding "AI slop"—low-quality, AI-generated content that can dilute brand safety. Despite these risks, 76% of buyers prioritize optimizing content for AI-generated answers. This trend signals a transition from traditional SEO toward Large Language Model (LLM) visibility.
Budget Flows Toward Acquisition Partners
Digital channels remain the primary engine for growth despite economic uncertainty. Brand equity regained importance for 43% of respondents as companies protect market share against AI discovery platforms.
For the affiliate and performance industry, these figures indicate that budgets will flow toward partners who demonstrate high-value customer acquisition. Success now depends on navigating the emerging AI-search ecosystem. The IAB concludes that while growth persists, the competitive landscape has become more complex.
Affilitizer Editorial Team
This article was created with AI assistance and editorially reviewed.
