US marketers are expected to increase ad spending by 9.5% in 2026, driven largely by major events like the midterm elections, Winter Olympics, and FIFA World Cup. Even without these events, growth is projected to be between 7.1% and 7.8%. Social media and connected TV (CTV) will see the most significant growth, with increases of 14.6% and 13.8% year-over-year, respectively. However, challenges loom. A report from the Interactive Advertising Bureau (IAB) highlights concerns about tariffs, with 90% of buyers worried about their impact on ad spend. Despite these fears, the percentage of buyers cutting ad budgets due to tariffs decreased from 45% to 30%. Marketers are shifting focus towards driving repeat purchases rather than solely acquiring new customers, although 54% still list new customer acquisition as a top goal for 2026. The report notes that as consumers face higher prices for essentials, they may cut back on discretionary spending, further complicating the advertising landscape. Technological advancements, particularly in generative and agentic AI, are reshaping marketing strategies. A significant 78% of marketers are focusing on AI applications for media campaigns, while 66% are concentrating on AI for ad buying. However, there's a noted gap between interest and actual deployment. Many marketers still hesitate to use agentic AI for programmatic buying or negotiations. Meanwhile, commerce media is projected to grow by 12.1% in 2026, outpacing overall ad market growth. Shoppable ads and creator partnerships are also gaining traction, with 45% of marketers planning to focus more on these strategies.