WARC’s 2026 outlook shows marketers navigating tariffs, shaky consumers, “crapification,” creator risks, and the rise of GEO as AI reshapes the fundamentals.
Marketers planning for 2026 must grapple with a business environment characterized by pervasive uncertainty, according to the latest industry assessment from WARC. The report cites escalating tariffs, geopolitical strife, and softening consumer spending as factors continuing to roil the market. This instability is accelerating two key trends: a widening wealth divide and the necessity of embracing emergent, yet potentially riskier, media channels, such as creators and Generative Engine Optimization (GEO).
The End of the Middle Class and Affordability Tension
WARC’s research underscores a significant shift in consumer demographics. Nearly three-quarters (73%) of marketers agree that the term “middle class” is effectively meaningless due to slow income growth, rising costs, and threatened job security.
With brands increasingly faced with targeting either the high or low end of the market, WARC recommends marketers help guide consumers through “affordability tension”—the gap between what people desire and what they can realistically afford.
- Segment Reassessment: Traditional consumer milestones are in flux. 59% of marketers believe that audience segmentation based on factors such as age, income, and social class is less effective, while 57% note changes in traditional family structures and gender roles, including a rise in childless households.
- New Resonance: To establish emotional resonance amid this fractured consumer picture, WARC advises emphasizing unity and stability in messaging and developing “emotionally immersive experiences.” Tapping into “cultural and ideological values” is another key route.
Also Read: GenAI Search Is Rewriting the Shopper’s Playbook
Combating ‘Crapification’ and Elevating Brand Experience
WARC argues that brands must act as a counterforce to “crapification,” a term referring to the deterioration of the user experience caused by online platforms prioritizing monetization and engagement. Digital advertising practices and the use of generative AI have notably exacerbated this trend.
Moving beyond conventional ads:
- 78% of marketers are investing in digital channels.
- 74% are betting on in-person activations to create enhanced brand experiences that offer consumers a form of escapism in 2026.
The Creator Economy and the AI Threat
Marketers are increasing their spending on the creator economy, with 61% expected to allocate more resources to the category next year. However, WARC cautions that there is an inherent tension between a creator’s reach and measurable results, suggesting that ad spend can often be ineffective. The firm urges marketers to align internally on Key Performance Indicators (KPIs) for creator campaigns and utilize levers like paid media to ensure success.
Furthermore, generative AI poses both a threat and an opportunity that “hovers over many aspects of marketing.”
- Search Disruption: Only 11% of marketers are unconcerned about AI’s impact on search, a foundational digital channel.
- Strategic Pivot: 24% are pivoting their SEO strategies to focus on Generative Engine Optimization (GEO).
To cut through the AI noise, WARC encouraged marketers to prioritize testing that yields measurable outcomes on customer journeys and to avoid letting experiments with new technology distract from strategies that have already proven effective.
