{"id":21128,"date":"2026-10-28T01:17:00","date_gmt":"2026-10-28T05:17:00","guid":{"rendered":"https:\/\/advertisingweek.com\/aw360\/?p=21128"},"modified":"2026-10-25T22:23:13","modified_gmt":"2026-10-26T02:23:13","slug":"navigating-a-1-34-trillion-market-scale-automation-and-sourcing-real-value","status":"publish","type":"post","link":"https:\/\/advertisingweek.com\/aw360\/news\/navigating-a-1-34-trillion-market-scale-automation-and-sourcing-real-value\/21128\/","title":{"rendered":"Navigating a $1.34 Trillion Market: Scale, Automation, and Sourcing Real Value"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><em>By Linda Cureton<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The latest <a href=\"https:\/\/www.warc.com\/en\/feed\/global-advertising-spend-surges-119-to-134trn-this-year-amid-consumer-caution-1f888471277f4ee2898fc6c7c0a2bc7f\">WARC Media Global Ad Spend report<\/a> forecasts a global advertising market of $1.34 trillion, up 11.9%. Yet, as social media spending approaches $394.6 billion and performance channels account for two-thirds of global investment, advertisers face mounting pressure to demonstrate returns amid squeezed household budgets.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The challenge is no longer simply securing reach, but understanding its value. As AI accelerates media buying and optimisation, industry leaders highlight the importance of balancing short-term results with brand building, contextual intelligence and reliable measurement.<\/p>\n\n\n\n<h2 id=\"h-balancing-performance-and-brand-building\" class=\"wp-block-heading\"><strong>Balancing performance and brand building<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Performance remains a priority, but marketers must also consider how channels contribute to longer-term demand. <strong>Alistair Hill, co-founder and CEO of On Device<\/strong>, argues that advertisers should take a broader view of the customer journey.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIn an uncertain trading environment, the focus on performance channels isn\u2019t going away, especially as AI tools make activations and optimisation faster and simpler. The shift towards programmatic buying of \u2018traditional\u2019 media has created a similar opportunity for brand campaigns, with brand lift signals being passed into systems alongside performance data. Smart advertisers should be paying attention to how different channels contribute at each stage of the funnel, rather than expecting one channel to do all the heavy lifting.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That wider perspective may help explain why investment is extending beyond major digital platforms. <strong>Christoph Berg, co-founder and CEO of MINT Square<\/strong>, points to growing interest in digital out-of-home (DOOH) as evidence of advertisers looking beyond immediate conversions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIt\u2019s no surprise that brands are investing in the big three, social, search and retail media, where measurable outcomes and flexibility are particularly attractive in uncertain times. What\u2019s more interesting is the growth of DOOH. Performance in lower-funnel channels often depends on awareness and consideration built earlier, so growing investment in DOOH may suggest advertisers are looking beyond immediate conversions and recognising the value of sustained brand visibility. Maintaining that balance between building demand and converting it into sales should put brands in a stronger position as advertising growth is expected to moderate next year.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Hill also challenges the assumption that out-of-home (OOH) delivers awareness alone, highlighting its potential contribution to purchase intent.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cOOH is still often seen as a broad-reach awareness channel, but our benchmark brand lift data shows it can play a much bigger role in driving intent than many media planners and buyers assume. Bringing together scalable digital channels with TV and OOH could therefore be a stronger approach to delivering full-funnel impact going forward.\u201d<\/p>\n\n\n\n<h2 id=\"h-beyond-reach-the-importance-of-context\" class=\"wp-block-heading\"><a><\/a><strong>Beyond reach: the importance of context<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A broader channel mix is only part of the equation. Advertisers must also distinguish between impressions that generate exposure and those that genuinely engage audiences, especially during economically challenging times for consumers. <strong>Juliet McCutcheon, Country Manager UK<\/strong> <strong>at Channel Factory,<\/strong> believes contextual intelligence is key to making that distinction.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cAdvertisers are growing budgets 11.9% while consumers tighten theirs, so every dollar has to prove its worth. With social set to reach $394.6bn, the question is no longer how much reach you can buy, but what that reach is worth.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">McCutcheon identifies the signals and safeguards that can help advertisers evaluate media quality, particularly as AI increases the volume of available content.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe answer is contextual intelligence: knowing which content environments actually move audiences, and putting budget there. Signals such as attention and VTR, can help advertisers identify the environments that perform for their audience, not just contextually relevant in the moment, rather than paying for scale that never converts into attention.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThat matters most on YouTube, where people actively choose what they watch and context counts as much as the audience. And as AI floods platforms with content, suitability becomes the safeguard, keeping brands in environments that reflect their values and build trust. Efficiency and suitability aren&#8217;t a trade-off. Together, they redefine the impression by what it&#8217;s worth, not what it costs.\u201d<\/p>\n\n\n\n<h2 id=\"h-ai-growth-demands-greater-scrutiny\" class=\"wp-block-heading\"><a><\/a><strong>AI growth demands greater scrutiny<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">AI is also changing how consumers discover brands, creating new opportunities beyond established advertising channels. <strong>Mick Rigby, Founder and CEO of Yodel Mobile<\/strong>, highlights the implications for businesses adapting to these changing behaviours.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cAI is driving much of this growth while changing how people discover brands, with the emergence of AI assistance and generative search offering businesses new opportunities to reach audiences they may have missed through traditional channels.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Discovery, however, is only the beginning. Rigby argues that brands should also consider how their apps can sustain customer relationships beyond the initial interaction.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cApps need to adapt to this new algorithm. Often forgotten by brand marketers, an app is one of the most intimate channels for a brand to interact with customers, returning to and physically interacting with throughout the day. Think of a retailer whose social campaign prompts a first purchase. If it\u2019s on the app, then it makes it easy to track the delivery, collect loyalty rewards and re-order a favourite product; it builds a relationship with the customer and they have a reason to keep using it long after the campaign ends.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Yet increased investment in AI and its associated platforms should not automatically be interpreted as improved advertising effectiveness. <strong>Ian Maxwell, CEO at Converge<\/strong>, questions whether the market&#8217;s expansion reflects better outcomes or the growing financial power of major technology companies.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cAI is driving advertising growth through tech companies spending more, better campaign tools and new advertising destinations but these are different drivers. More spend from AI companies doesn\u2019t itself mean advertising is becoming more effective.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cGenerative search and AI assistants create new opportunities but how will we compare their contribution with channels and platforms already in the plan?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe growing share going to Alphabet, Amazon and Meta raises the same question. How much reflects better results, and how much reflects scale and ease of buying?\u201d<\/p>\n\n\n\n<h2 id=\"h-automation-needs-reliable-measurement\" class=\"wp-block-heading\"><a><\/a><strong>Automation needs reliable measurement<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Maxwell&#8217;s concerns extend to the systems that are becoming more responsible for allocating advertising budgets. Automation can speed up decisions, but inconsistent platform reporting makes it difficult to establish whether those decisions deliver meaningful business outcomes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cAs more media becomes addressable and measurable, machines can increasingly trade it in real time. But an autonomous agent can only make good decisions if the measurement and infrastructure underneath it are reliable.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cComparing apples with apples remains difficult when platforms measure and attribute success differently. The risk is that automation reinforces what looks good in platform reporting, without establishing what it contributes to the business.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cAgencies and brands need comparable evidence across channels and platforms. There\u2019s room to test new opportunities, but the questions remain around who are we reaching, what is it delivering, and is it worth the spend? Automation makes getting those answers right more important. Bigger budgets make that scrutiny more important too.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ultimately, advertising effectiveness must be judged beyond the initial conversion. Rigby argues that brands should connect AI-driven discovery with experiences that encourage customers to return.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cMarketers need to understand which customers return and what keeps them coming back, rather than judging success on the first transaction alone.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cAs advertising investment grows and AI increasingly dictates discovery, apps deserve a place at the planning table. If you can master AI-driven discovery with the app experience, brands have a much better chance of turning that first spark of interest into a long-term relationship.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In the current growing global advertising market, the priority shouldn&#8217;tsimply be to buy more reach or automate more activity. The aim now is to combine effective channel planning, relevant content environments and comparable measurement to ensure that rising expenditure translates into lasting business value.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The latest WARC Media Global Ad Spend report forecasts a global advertising market of $1.34 trillion, up 11.9%.<\/p>\n","protected":false},"author":26,"featured_media":21129,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","editor_notices":[],"footnotes":""},"categories":[1],"tags":[3],"topics":[2],"class_list":["post-21128","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-brands-marketers","topics-editorial"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.5 (Yoast SEO v28.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Navigating a 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