The technology sector is fast moving, and, in terms of advertising, is a high spender. Ad spend has risen by 12% in 2025 and will rise by a further 10.3% in 2026 and 7.3% in 2027. In this article we look at the different factors that are driving this growth.
New and better products and services to sell
AI is advancing quickly with new seemingly daily innovations from major players like OpenAI and Perplexity, and the advances in what is possible are affecting all areas of tech including new and enhanced devices, new services, consolidation of the major players, and a greater need for brands to differentiate their offerings.
In hardware, new devices like smartphones have new features including enhanced photography, editing, translation and productivity, creating a greater incentive to upgrade and buy new kit. AI is also introducing new devices to the mainstream, including smart glasses, like the new Ray-Ban Meta glasses with features like voice control and AI powered assistance. Millions of pairs have been sold and there is a strong incentive to advertise these to consumers, especially in the run up to gifting season.
In services, AI gives users a greater need to have a fast connection and to have lots of storage, both of which are found in crowded markets with many providers all needing to spend across different media to differentiate themselves and sell the benefits of their features. Other digital services like virtual private networks (VPNs) are also becoming more mainstream, with users able to protect their data more effectively and retain privacy. Again, there are many providers and a strong incentive to advertise.
AI also brings more powerful shopping tools to consumers, making it easier for them to get recommendations based on their circumstances and requirements. It also drives the need for marketers to spend to ensure that they appear in the new platforms and stay in consumers’ consideration sets.
More sophisticated advertising
At the same time, marketing is becoming more sophisticated, with greater understanding of audiences and targeting, more visibility of the true impact of campaigns, and enhanced ability to measure the real impact of both longer-term metrics like brand strength and shorter-term metrics like social media sales.
Finally, the industry is seeing a period of consolidation with mergers and takeovers, for example, smaller mobile networks are being absorbed into bigger ones. This creates a need to both educate consumers on the benefits of the changes, and to fight to grow market share.
From changing consumer behaviors to the impact of AI, 2026 is set to be a growth year for advertising in the technology category. To find out more about ad spend trends across industries, download the dentsu Global Ad Spend Forecasts today.
