the algorithmic era accelerates market transformation

Although the global economy is facing a slowdown, demand for media remains strong, driven by changes in consumer behavior, accelerated digitalization, and the transition into what dentsu calls the algorithmic era – a period in which media are becoming not only a channel, but also a key driver of brand growth.

As algorithms increasingly determine what people see, follow, and buy, brands are entering a market in which attention is an ever more valuable resource and every interaction an opportunity for connection. Crossing the trillion-dollar threshold marks a new phase in the market’s development. “Today, media function as the gateway for every brand and are the primary mechanism for creating relevance and long-term value,” emphasized Will Swayne, Global Practice President, Media and Integrated Solutions, dentsu International.

He added that in the upcoming algorithmic era, the most successful brands will be those that understand how algorithms shape content discovery and decision-making, and that use media as a strategic engine of growth.

The coming year will also be marked by a series of major global events – from the Winter Olympic Games to the World Cup and important election cycles – which will further stimulate audience engagement across different media environments. However, audience interests continue to expand beyond traditional formats. Sports docuseries are becoming increasingly popular, almost half of Generation Z follows Japanese anime on a weekly basis, and in the United States more young people identify as anime fans than as supporters of major sports leagues. In such an environment, a growing number of marketing leaders plan to invest in original content and sponsorships, further expanding creative opportunities for brands.

From a regional perspective, the market remains strong and balanced. In 2026, the Americas are expected to record growth of 5.2%, with the United States achieving steady progress driven by sports and political events, while Brazil leads among major markets. Asia-Pacific remains the most dynamic region, with growth of 5.4%, with China and India showing particularly strong momentum. In the EMEA region, growth of 4.2% is expected, and the United Kingdom remains the fastest-growing market.

Digital advertising remains the dominant force in the market and will account for nearly 69% of total global spending. Retail media, online video, and social media are seeing particularly strong growth, while programmatic advertising is entering a phase in which it will account for more than four-fifths of all digital investment. Traditional media are also showing resilience – television advertising is recording a slight recovery, out-of-home continues to grow steadily thanks to the digitalization of spaces, while print is the only segment in decline, although niche magazines have shown signs of revitalization in recent years.

Among advertiser sectors, the technology industry is growing the fastest, driven by the development of artificial intelligence and innovation across the connected ecosystem, while strong growth is also being recorded by political, social, and governmental entities, as well as the beverages industry, preparing for a major sports year.

“On the Croatian market in 2026, we expect slightly higher growth than at the global level, primarily because new advertisers are entering the market, but also due to increased investment by existing ones,” said Andreja Jakšić, Planning Director at dentsu Croatia, and continued:

“The strongest growth is expected in the retail, food, and beverage sectors, especially ahead of the upcoming FIFA Men’s World Cup. We expect continued growth in investment in television and digital advertising, with somewhat more moderate growth in out-of-home and radio advertising. In the recent period, we have seen that advertisers are willing to invest in sponsorships and sponsorship packages, allowing them to connect more strongly with specific content in which audiences spend more time, which increases attention levels and overall effectiveness. This is another channel in which we expect growth in the year ahead.”

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