MAM
Humans hesitate, bots decide: 2026 to reset the rules of marketing
MUMBAI: Performance marketing is entering a harder, sharper, more automated era. Inflation is cooling, consumers are still bruised, AI is everywhere and trust is scarce. The result: fewer vanity metrics, more machine-led buying and a ruthless focus on returns. That is the thrust of a 2026 trends report by affect, a growth marketing agency, which synthesises more than 100 industry studies into 70 “trend facts” spanning the economy, media, technology and business.
The macro mood is cautiously steadier but fragile. Global inflation is forecast to ease from 4.2 per cent in 2025 to 3.6 per cent in 2026, yet consumers feel an “inflation echo” from cumulative price rises. Seventy-three per cent of those who feel worse off blame living costs. A basket that cost $100 in 2023 will cost $106 in 2026. Healthcare prices are up 5.4 per cent, snacks and confectionery 4.9 per cent and non-alcoholic drinks 3.6 per cent. Seventy-four per cent worldwide worry about everyday costs, now a bigger concern than climate change or unemployment.
Growth continues but nerves linger. Global GDP is seen expanding 3.1 per cent. Conflicts have jumped from the fifth to the second biggest global worry, up 9 per cent year on year; political instability ranks seventh. In America, 42 per cent say finances have improved or stabilised and the financially insecure share has fallen to 17 per cent. Only 8.5 per cent say they are “much worse” off than a year ago. Still, nearly half of households have nothing left after essentials. Seventy-eight per cent plan to boost emergency savings, 60 per cent seek extra income and 36 per cent aim to clear credit-card debt. Yet 36 per cent are willing to take short-term debt for pleasure, a nod to “Treatonomics”. Meanwhile, 77 per cent in North America expect unemployment to rise.
Age holds the money. Over-65s control 50 per cent of American household wealth. Gen Z is the richest young cohort yet: the average 25-year-old Gen Z household earns $40,000, but its spending is rising twice as fast as predecessors.
In the aisles, trust and value rule. Tariffs have pushed U.S. import prices 5.4 per cent above trend. The average American FMCG basket is $36, up 4 per cent. Sixty-two per cent cite trust as the decisive brand factor, versus 56 per cent in 2024; 75 per cent want brands to respond faster. Physical retail still delivers 77 per cent of FMCG sales. Households make 294 store visits a year, spend $8,222 in-store and $2,737 online. Food and beverage leads budgets at $7,127 a year.
Consumers still trade down: 79 per cent globally do so, often cutting basics to fund treats. Thirty-two per cent switch to cheaper brands. Thirty per cent buy private label; U.S. private labels are growing 5.5 per cent versus 6 per cent for national brands. Speed increasingly trumps price: food delivery’s share of foodservice spend has leapt from 9 per cent in 2019 to 21 per cent in 2024. More than half of U.S. households now seek financial advice, the highest since 2008, and 44 per cent turn to social media for it.
Authenticity is fraying. Over half of consumers question online content because of AI. Seventy-six per cent struggle to tell real from synthetic images; a third have faced deepfakes or AI fraud. Real-world contact is regaining allure: 42 per cent say physical events are the week’s highlight versus 15 per cent for digital; 79 per cent of Gen Z prefer in-person dating. Sixty-eight per cent stress self-reliance in health and finance. While 64 per cent like personalisation, 32 per cent are uneasy about data use. Seventy per cent track health via apps or wearables.
Discovery is social and omnichannel. Half of adults find brands via social platforms; Instagram leads research. Sixty-three per cent of Gen Z say social ads drive purchases. The average buyer uses 3.6 channels to buy food. People have three extra free hours a week, but spend 90 per cent of it alone. Daily time online averages six hours and 38 minutes. Fifty-five per cent prefer fast solutions and lean on “collective intelligence” online, even for health and money. Social commerce keeps rising, though Western markets fret about payments.
Media habits are splitting by age. Gen Z spends 50 more minutes on social media and 44 fewer minutes on TV and film than the average consumer. Subscription fatigue is biting: four streaming services now cost $69 a month, up 13 per cent. Nearly half feel they overpay; 39 per cent cancelled at least one service in six months, over half among young cohorts. Cable penetration has slid from 63 per cent to 49 per cent in three years. Yet linear TV still claims 57 per cent of viewing time, anchored by older audiences, news and sport.
Search remains the top discovery channel at 32.8 per cent, but among 16–34s social ads lead. YouTube dominates time spent, TikTok leads engagement at roughly 35 hours a month per Android user. Facebook still counts 2.3bn users but with falling engagement; Instagram beats TikTok in ad reach. Social ads and reviews sway 63 per cent of Gen Z and 49 per cent of Millennials; streaming ads far less. Half of young users feel closer to creators than TV celebrities. Social media is deemed least trustworthy, yet 29 per cent still buy from it. As platforms hoard attention, news outlets lose revenue and rely more on algorithms, a risk to quality.
AI is the backbone. Fifty-three per cent of Americans already use generative AI. ChatGPT counts 800m weekly users, about 10 per cent of humanity. Forty per cent of brands plan to deploy GenAI; 70 per cent of marketers budget for it expecting revenue gains. Twenty-four per cent of AI users shop with assistants. Seventy-four per cent of B2B and B2B2C firms use AI agents; by end-2026, 40 per cent of enterprise apps will embed them. By 2029, AI may handle 80 per cent of routine customer service.
Amazon has rolled out one million AI-driven robots, lifting warehouse efficiency 10 per cent. Algorithmic systems will manage 71.6 per cent of global ad spend. Trust in neobanks lags at 30 per cent versus 67 per cent for regional banks; Gen Z prefers debit. A quarter plan crypto investments, often peer-led. Discomfort persists: 58 per cent feel uneasy dealing with AI brands, 86 per cent still value humans, yet 80 per cent want AI in service. “AI shoppers” or digital twins are expected to buy autonomously.
For marketers, the playbook is being rewritten. Retail media networks are becoming the prime performance channel, forecast to grow 14.1 per cent and absorb over 20 per cent of digital ad spend, expanding off-site into CTV and the open web. Generative AI is turning video into mass-customised production; 42 per cent already use AI for personalisation. SEO is giving way to GEO—generative engine optimisation—as AI agents choose products. One-fifth of B2B vendors may negotiate with bots by 2026.
Budgets are tilting to hard returns. Programmatic buying is moving to curated private marketplaces, now taking 66 per cent of open-market spend. Everything is becoming shoppable, from social feeds to CTV, where 60 per cent of buyers expect interactive commerce. Mobile will command 66 per cent of digital budgets. As privacy dents attribution, marketers are reviving marketing-mix modelling to tie spend to revenue, margins and lifetime value. Influencer marketing is being judged on ROI; 61 per cent of marketers plan to spend more on creators. With 79 per cent of consumers hunting value and 55 per cent ready to switch brands, “smart frugality” is the tone.
At the corporate level, 68.7 per cent of global ad spend will be digital in 2026. Firms report 5–10x ROI on AI agents. Eighty-six per cent of advertisers plan to use GenAI for video; 40 per cent of video ads will be AI-made or enhanced. Unilever alone aims to work with 300,000 creators, 20 times more than now. Linear TV is set to fall 4.2 per cent and then flatline; CTV ad spend will jump 13.6 per cent past $37bn. Fifty-four per cent of buyers will raise performance budgets versus 22 per cent for brands. ROI is the top criterion for 84 per cent of CMOs. Support from CEOs and CFOs for long-term brand building has slipped to 69 per cent, though 83 per cent of CMOs still see brand as a core asset. Meanwhile, 60 per cent of employees fear GenAI will raise stress and burnout.
Affect’s conclusions are blunt. Marketing must address both humans and machines as AI agents start buying. Trust is the new currency in a world of deepfakes. Retail media is the growth engine. SEO must evolve into GEO. Treatonomics rewards small joys. Offline experiences are reviving. Influencer marketing is industrialising. AI adoption must be cultural, not just technical. Older consumers—the “silver economy”—deserve more attention. And with ROI pressure peaking, the era of experimentation is giving way to execution.
In short: the future buyer may be a bot, the future metric a sale, and the future brand one that machines and humans both trust. In 2026, marketing grows up—and the excuses run out.
MAM
India’s experience economy grows as live events market hits Rs 17,000 crore
EY-Parthenon and BookMyShow report finds 78 per cent Indians prefer experiences over products
MUMBAI: India’s live entertainment scene is no longer just about music, comedy or festivals. It is increasingly becoming a powerful stage for brands seeking deeper connections with consumers.
A new report titled Beyond Attention, Into Immersion by EY-Parthenon and BookMyShow suggests that India’s experience economy is entering a strong growth phase, driven by consumers who are choosing memorable moments over material purchases.
According to the study, the country’s live events ecosystem, which includes concerts, comedy tours, festivals and immersive exhibitions, is estimated to reach around Rs 17,000 crore in 2025. The growth reflects a broader cultural shift in how Indians spend their time and money.
The report finds that 78 per cent of Indian consumers now prefer spending on experiences rather than physical products. From attending concerts and festivals to participating in interactive brand installations, audiences are increasingly seeking engagement, community and shareable moments.
This change in consumer behaviour is particularly evident among younger audiences who want to participate rather than simply watch. Instead of passively consuming entertainment, many now look for experiences that allow them to interact, express themselves and connect with like minded communities.
For marketers, this shift has turned experiential marketing into a strategic priority rather than a promotional add on. Brands are moving away from interruption driven advertising and towards immersive formats that allow consumers to discover, test and emotionally connect with products.
The report suggests that experiential marketing now plays a role across the entire consumer journey. It can spark brand discovery, strengthen storytelling, encourage product trials and ultimately influence purchase decisions and loyalty.
The impact is already visible. Post event surveys conducted among 7,450 attendees at major events including Lollapalooza India and concerts by Ed Sheeran and Guns N’ Roses highlight the effectiveness of these experiences.
Around 59 per cent of attendees recalled brands they interacted with during the events, while 55 per cent said those interactions increased their likelihood of purchasing from the brand. A further 63 per cent reported that brand activations actually enhanced their event experience rather than distracting from it. Nearly 29 per cent also said the interaction improved their perception of the brand.
Brands are also changing the way they approach events. Instead of simply putting logos on stages or banners, companies are building experiences into the fabric of the event itself.
Financial services brands, for example, are offering early ticket access, exclusive lounges and curated event experiences for cardholders. Fashion and beauty companies are using festivals to showcase products through pop ups, interactive installations and social media friendly spaces that encourage visitors to share their experiences online.
The scope of experiential marketing now stretches far beyond live entertainment. Retailers are designing experiential stores where customers can explore products in lifelike environments. Entertainment platforms are extending popular intellectual properties into immersive exhibitions and fan events. Technology is also playing a growing role through augmented reality and virtual try on tools that blend digital discovery with physical interaction.
Cultural festivals remain one of the most powerful platforms for such engagement in India. Celebrations such as Navratri and Holi bring together large communities, emotional participation and heightened consumer spending. For brands, these moments offer an opportunity to become part of the celebration rather than simply advertise around it.
Despite the momentum, the report notes that some companies still hesitate to adopt experiential marketing at scale. Budget constraints, limited expertise and uncertainty around measuring return on investment remain common concerns.
However, the growing body of data around consumer engagement and brand impact is gradually addressing these challenges. More marketers are expected to allocate a larger share of their budgets to experiential formats over the coming years.
Taken together, the findings point to a clear trend. As consumers seek meaning, memories and moments worth sharing, live experiences are emerging as one of the most powerful ways for brands to stay relevant in a crowded media landscape.
