30% ad budget cuts, 20% rise in AI-driven privacy lawsuits, and 1 in 3 consumers going offline - 2026 set for marketing reality check

2026 will mark a turning point for consumer marketing and digital strategy, with Forrester predicting a sharp correction across advertising, AI, and customer experience (CX). The research firm’s Predictions 2026: B2C Marketing, CX & Digital report warns that the AI hype bubble will finally burst - exposing fragmented ecosystems, data misuse, and growing consumer distrust.

As inflated expectations give way to realism, leaders will be forced to abandon surface-level efforts and focus on substance, transparency, and measurable impact.

Traditional adex under pressure as TV grows by 1%, print down by 3% in 2025: WPP Media

“Disconnected strategies and performative personalization will no longer earn loyalty,” Forrester cautioned, adding that only brands delivering real value will stay ahead in an era defined by scrutiny and accountability.

Among the key forecasts:

Ad budgets to shrink: Display ad spending is expected to fall by 30% as consumers drift away from the open web and toward generative AI platforms, streaming audio, and social video. Marketers will have to realign media mixes with where audiences actually spend their time.

AI-driven privacy lawsuits to surge: Legal action around data misuse and AI-enabled breaches is projected to rise 20%, with class-action suits increasingly targeting brands and platforms that fail to protect consumer information.

Offline resurgence: Roughly one in three consumers will opt for offline experiences over digital ones. Brands are already responding - with companies like Coach, TikTok, and Starbucks betting big on in-person connections.

CX teams rethink their playbook: Two-thirds of CX departments will drop traditional journey mapping, long dismissed as cosmetic, to focus instead on journey management that ties customer goals directly to business results.

Agentic commerce consolidation: Major brands such as Nestlé are developing their own conversational AI ecosystems to unify shopping, service, and promotions, signaling a broader shift toward integrated, brand-owned digital experiences.

Agency world in flux: Following Omnicom’s acquisition of IPG, another holding group shake-up looms. Forrester predicts a major consolidation move - possibly Havas acquiring Dentsu’s international business - triggering a fresh wave of global media account reviews.

"We predict that Havas will acquire dentsu's international operations. The Tokyo-based company secured M&A partners to identify potential buyers," the report added.

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A second scenario is that WPP restructures to ready itself for a sale to private equity or Accenture. Either scenario will push marketers to review assignments in three- and five-year contracts; 85% of US B2C marketing executives plan to review their media agencies in 2026. Six major brands reviewed media assignments in 2021, and 20 did so in 2023. CMOs considering an agency review in 2026 can start by identifying the agency operating model that best meets their priorities and budgets.

Ultimately, Forrester’s message is clear: the coming year will reward brands that trade flash for function. Those that rebuild on the pillars of trust, transparency, and tangible value will emerge as the true leaders in a post-hype marketplace.