AI-assisted shopping and advertising will surge as the Gulf states support innovation, but a creator content boom will cause tensions around censorship.

Meta’s global ad marketplace is splitting into two distinct cost curves. According to new Emplifi data, retail CPCs nearly doubled from $0.16 to $0.32 over the past year, while ecommerce CPCs fell from $0.23 to $0.19 as Meta’s AI optimization drove sharper efficiencies. The overall median CPC declined from $0.19 to $0.15, indicating advertisers aren’t cutting spend—they’re reallocating as automation improves returns. Retail’s mixed online–offline goals make optimization harder, while ecommerce benefits from clearer conversion signals. With Q4 competition intensifying and holiday ecommerce projected to grow 7%, marketers should expect sharper CPC swings and plan for agile bidding, creative iteration, and real-time budget shifts.

New York has enacted the first US laws requiring disclosure and consent for AI-generated performers and posthumous likenesses in advertising and entertainment. The measures mandate clear labeling when synthetic or digitally altered performers appear onscreen and require approval from estates before deceased individuals’ likenesses are used commercially. The laws sharpen a state–federal divide: President Trump has warned states against AI rules that could hinder US competitiveness, favoring a single national framework instead. For media companies, New York’s move creates immediate compliance obligations—and a preview of regulatory uncertainty ahead.

In 2026, AI will reshape advertiser workflows and behaviors, while rising video consumption will boost CTV and YouTube.

Meta has rolled out major upgrades to partnership ads on Facebook and Instagram, introducing new AI-enabled tools, broader creator discovery surfaces, and an API that lets advertisers programmatically convert UGC and creator posts into paid ads at scale. Partnership ads already outperform standard formats—19% lower CPAs and 13% higher CTRs—and with Gen Z more receptive to creator messaging and most consumers taking action quickly after seeing creator content, Meta is formalizing the path from organic influence to paid performance. For marketers, the message is clear: creator content is now a foundational performance lever, not an experimental add-on.

Social networks will claim close to 32% of US digital ad spending in 2026, as powerful AI systems and improved video monetization help push social past a plateau in time spent among US consumers.

Disney will invest $1 billion in OpenAI and allow Sora users to create short-form videos featuring more than 200 Disney, Pixar, Marvel, and Star Wars characters. User-generated material opens a new potential spigot of low-cost content for Disney+, which is under increased pressure to compete with YouTube. The move marks a major shift for a conglomerate that has historically held its IP close to the chest.

AI enters 2026 facing energy bottlenecks, regulatory battles, and a gap between promise and performance. From market corrections to voice assistant limits and physical AI’s unreadiness, hype is meeting reality.

Attention metrics (AUs) in the social media video landscape are gradually fragmenting as audiences shift to platforms with interest-driven feeds, per our industry KPI data provided by Adelaide. Consumer attention fragmenting across platforms means that advertisers who are already struggling to reach target audiences on social media are facing an uphill battle. Focusing on interest-driven platforms like Reddit and Pinterest as they gain AUs can help drive stronger results, while maintaining investment in leaders like YouTube will remain essential.

For social platforms, AI hype is colliding with user fatigue and rising regulations. In the US, they face stalled engagement and tougher rules as people demand more control and more human experiences.

Canada’s digital economy is entering a faster, more competitive phase in 2026 as ad spending accelerates, short video surges, ecommerce climbs, and AI-driven search reshapes how audiences discover content.

WPP, once the top advertising group globally, will be retired from the FTSE 100 after almost 30 years as its market value has fallen dramatically in recent years. Removal from the FTSE 100 and a plummeting market value indicates that WPP’s struggles are deep-rooted and unlikely to vanish in the near future. For advertisers, the current imperative is to rethink partnerships, explore alternatives, and increase diligence.

Marketing professionals see AI leading to several shifts in consumer behavior that will greatly impact the fundamentals of digital advertising in the next 2 to 3 years, per a Funnel and Ravn Research study of in-house marketers and agency professionals. As AI reshapes digital and search advertising, the brands that thrive will be those who seize the opportunities presented by AI-driven changes.

Shifts in what consumers watch, how they search, and where they shop are reshaping Latin America’s digital economy—and how brands will reach audiences in 2026. Explore the five trends to watch in the year ahead.

This is the second installment of our “UK Ad Spending Benchmarks” series, which helps ad buyers and sellers calibrate their spending and revenue mix against the market.

The Omnicom-IPG merger has cleared its last obstacle after the European Commission—the last market whose approval was needed—officially granted greenlit the acquisition. Omnicom and IPG overcoming the final barrier to merge offers the potential for more comprehensive and efficient services—but also introduces new risks related to talent retention and creative diversity.

Shoppers are spending about 10% more on gifts this year, even if they’re feeling less confident. New insights from PMG show how that mix of caution and momentum is shaping a holiday season built on smart pacing and steady engagement.

Amazon is going all-in on AI-powered advertising solutions for small- and mid-sized businesses (SMBs). SMBs can now create high-quality campaigns without requiring costly resources, giving SMBs access to creative capabilities that were once out of reach.

Less than 3% of consumers in India recall digital ads they see despite spending an average of 2.17 hours daily consuming videos on mobile devices, per a report from RK Swamy Centre for Study of Indian Markets. Digital advertising is an essential part of a well-rounded campaign strategy in the digital-first era. But with ad effectiveness low, advertisers must carefully tailor strategies to drive the best outcomes.