New York, NY – The Interactive Advertising Bureau (IAB) has become more bullish on the U.S. advertising market, raising its 2026 growth forecast to 12.3% after a stronger-than-expected first half, with podcasts expected to remain one of the faster-growing media channels. The update lifts the full-year ad spending forecast by 2.8 percentage points from the 9.5% growth projected in January. The findings are based on insights from more than 200 brands and ad agency decision-makers, showing that the Winter Olympics and World Cup helped deliver a strong first half while advertisers have become less concerned about economic headwinds.
“For audio, podcasts continue to be a bright spot,” the IAB stated. The bureau projects podcast ad spending will increase 8.7% this year, slightly above the 8.6% growth forecast in January. That puts podcasts ahead of other digital audio, as well as paid search, digital out-of-home, digital display, and gaming advertising. Digital audio excluding podcasts is forecast to grow 3.6% versus 2025. Social media remains the fastest-growing channel at 16.5%, followed by connected TV at 15.6%, commerce media at 13.6%, and digital video excluding CTV at 9.4%.
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“The first half was strong, major live events delivered, and advertisers have increasingly powerful tools in their arsenal to find and engage customers,” said CEO David Cohen. Traditional media faces a tougher forecast, with print, traditional out-of-home, and direct mail expected to decline 2.3%, while linear television is projected to decline 1.5%. Meanwhile, AI is emerging as one of the biggest forces changing how advertisers find consumers, with 44% of buyers citing adapting to AI-driven search as their top media investment challenge. “Marketers have spent a lot of time asking, ‘How can I use AI?’ Now the question is becoming, ‘How do I reach a consumer who uses AI?'” said IAB VP Chris Bruderle.
