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Marketers will cut display ad budgets by 30% as AI-powered search and entertainment-first platforms such CTV and social video pull audiences away from the open web, according to analysts at consultancy Forrester.
With a third of consumers opting for offline brand touchpoints and price hikes driving churn for transactional brands, CMOs must rethink engagement across every channel.
“Despite consumers’ scepticism about genAI, they will continue to turn to AI-generated summaries and chat interfaces designed to return answers,” according to Forrester's 2026 predictions.
“This will shrink addressable audiences on the open web and click-through rates will decline
“As a result, leading advertisers will cut display ad budgets by 30% and redirect spending to more entertainment-driven content platforms, such as Connected TV (CTV), streaming audio, and social video.
Forrester says a third of consumers will opt for offline over online brand experiences.
Half ( 52%) of US online adults actively pursue in-person, tactile experiences, driven by a desire for richer, more sensory interactions that digital channels can’t replicate.
Digital experiences aren’t going away, but consumers in 2026 will more intentionally choose to disconnect online to connect offline.
Price hikes will cause transactional brands to lose a third of their customers, according to the predictions.
“Continued price pressure will break the backs of consumers as companies, feeling the tariff heat and margin squeeze, get smarter about using AI to extract higher prices.
As increased prices test the limits of consumers’ willingness to pay, up to a third of customers of transactional brands will walk away.
Forrester says marketers are eager to use AI for customer insights, campaign creation, and optimisation.
In 2026, the race to launch AI-native marketing technology is on, with one major vendor and two startups expected to debut next-generation, AI-native solutions.
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