IAB: US Ad Spend Jumps 9.5% in 2026, Fueled by Agentic AI

US ad spending is set to jump 9.5% in 2026, driven mostly by digital ads and smart AI tools. Social media, connected TV, and online shopping ads will see the biggest growth, with budgets rising fast. New types of AI are helping marketers plan and run campaigns much quicker and smarter. Even though some worry about keeping up with AI and changing customer habits, most companies are excited and ready to use these tools in a big way. 2026 will be the year that AI becomes a regular part of how ads are bought and measured.

A new report from the Interactive Advertising Bureau (IAB) forecasts that U.S. ad spend will jump 9.5% in 2026, fueled by agentic AI and strong digital growth. This reverses the post-pandemic slowdown, with the IAB | 2026 Outlook Study identifying agentic AI as the key driver reshaping social media, connected TV (CTV), and commerce media.

Where the Money is Going

Digital channels are capturing the majority of new investment. According to the IAB survey of over 200 U.S. buyers, social media budgets are projected to surge by 14.6%, with CTV close behind at 13.8% and commerce media expected to rise 12.1%.

This growth stems from a combination of factors. Major cyclical events like the Olympics and U.S. elections provide a temporary boost, but the underlying driver is the widespread adoption of agentic AI, which optimizes campaigns across high-performing digital channels for greater efficiency and real-time results.

A key tailwind is the evolution from generative to agentic AI. Two-thirds of advertisers now plan to use these autonomous systems for comprehensive campaign planning, activation, and optimization. These systems coordinate bids, creative, and measurement in real time, enabling faster budget reallocation than is possible through manual workflows.

Buyer Priorities for AI in 2026

The study reveals that five of the top six buyer priorities for 2026 are directly tied to AI infrastructure. Marketers intend to deploy AI agents for:

Media planning and forecasting across channels
Creative versioning and testing for performance
Budget pacing and anomaly alerts
Audience discovery using first-party data
Outcome-based, cross-platform reporting

This focus on efficiency is also reflected in campaign objectives. While customer acquisition remains the top goal at 54%, customer retention and loyalty have nearly doubled as a focus, climbing to 25% as advertisers seek to maximize lifetime value amid higher lead costs.

Key Challenges and Market Dynamics

Despite the optimism, advertisers are aware of significant challenges. Adapting to rapidly shifting consumer behavior is the top concern for 44% of respondents, while 38% acknowledge a need to better understand generative AI to govern it effectively.

Channel-specific trends also provide context. CTV growth, projected at 13.8%, is bolstered by major events and improved targeting capabilities, as analyzed by StreamTV Insider. Meanwhile, social platforms are leveraging AI-guided creator content, and retail media networks tout a 1.8x higher return on ad spend compared to traditional display ads.

Ultimately, the IAB's forecast signals a fundamental shift in the advertising landscape. Autonomous AI systems are graduating from pilot programs to core operational infrastructure. 2026 is poised to be the year marketers fully embrace AI agents, handing over tactical execution to focus on measuring strategic outcomes at scale.

What is driving the 9.5% jump in U.S. ad spend for 2026?

Digital channels plus cyclical events deliver the lift. Core digital growth is 7.1 - 7.8%, but the Winter Olympics, FIFA World Cup, and U.S. elections add roughly two extra percentage points. Behind the scenes, agentic AI is doing the heavy lifting, moving dollars from test budgets into always-on, autonomous campaign execution.

Which media types will grow fastest?

Social media +14.6%, CTV +13.8%, and commerce media +12.1% are all running at double-digit pace, according to the IAB 2026 Outlook Study. Each channel is being rebuilt around AI-optimized targeting and measurement, turning what used to be experimental line items into core performance inventory.

How is "agentic AI" different from the AI we already know?

The first wave automated single tasks (bidding, creative resizing). Agentic AI strings those tasks together, acting as an always-on planner that can set goals, shift budgets, and rewrite creative without daily human sign-off. Five of the six top priorities that buyers cite for 2026 now sit inside this agentic workflow, making it the new operating system rather than a point solution.

Are marketers spending more on acquisition or retention?

A clear pivot is under way. Customer acquisition is still number one at 54%, but that is down 10 points YoY, while repeat purchase/loyalty leapt to 25% from only 13% in 2024. Agentic systems make retention profitable at scale, so lifetime-value campaigns are stealing share from pure reach plays.

What should brands watch out for as they scale AI agents?

Two speed bumps dominate survey responses:
- 44% worry about fast-shifting consumer behavior that agents must keep up with in real time
- 38% admit they still don't understand generative AI well enough to govern it

The IAB roadmap released in January 2026 pushes Agent2Agent protocols and clearer measurement standards, but early adopters are urged to invest as much in governance and talent as they do in the tech itself.