Digital Marketing to cost more in 2026

If your marketing feels like it’s getting more expensive for the same result, it’s because it is. The data shows that the cost of staying visible is rising.

We’ve moved past the point where digital ads are a "cheap" way to scale.

The reality is that for most UK businesses, Customer Acquisition Cost (CAC) has increased by roughly 50% over the last three years. Reasons why Ad costs rising? Inflation Inflation exists in the digital Ad world. With 5-6% inflation predicted for 2026 by WARC. Which means to keep the same level of visibility you would need an increase of 6% to your ad budget. For better or more visibility you would have to go even higher.

Targeting is harder: 

Privacy control rules mean we can’t find specific buyers as easily as we used to, so we end up paying to show ads to people who will never buy. Broader reach, more waste. This is also reflected through new additions from ad platforms like Google and Meta who have introduced Performance Max and Advantage plus as the default option.

Ad platforms are crowded: 

More businesses are bidding for the same small pool of clicks, which naturally drives the price up. Why are the pool of clicks small? The 95:5 rule explains only a small percent of customers are in Market. Also AI overviews have taken up / replaced some ad space, further limiting what people can bid for.

There is too much Content: 

People are seeing more content than ever and AI has made it easier to generate this content. Which makes it harder for your content to be seen, requiring more effort to stand out in the sea of content. Then there is also some limit to how many hours of content people can consume. (only so many hours in a day)

Organic reach is down: 

Platforms turning into 'pay to play'. Organic reach down by up to 35%. Also a shift in Algorithms showing you less from who you actually follow and more 'suggestions'. Which is a real kick in the teeth for brands that have built large followings. You're forced to spend to get reach.

What can you do?

1) Pick and Choose: If you don't know what channels perform best for your business, now is the time to find out. The increase in costs mean you'll have to pick and choose the platforms you want to advertise on.

Finding out about what platforms your audiences uses and where you get the best ROI from isn't a bad thing. 2) Alternatives: There is a world of marketing outside of digital ads. The cost / effort gap between traditional marketing methods like print, events isn't the same. With hyper targeting also gone, using alternative strategies could give you the edge over competitors limiting themselves to digital ads. 3) Owned Channels: As a channel, The drawback of social media, even SEO to a degree is that you don't own them. An algorithm update, change of terms can wipe out your reach and connection with your customers. Ads of course are pay to play, with costs that you do not control. The introduction of AI overviews has had a huge impact on SEO. Smart marketers have been growing and developing owned channels (like email lists, newsletters. You control quality and have a direct connection with your customer. 3) Build your brand: The one advice from us and the big consulting & ad firms (WARC and McKinsey) is that it more important than ever to invest in BRAND.

With everything else becoming expensive, elusive and out of your hands. There is another thing you own and that is your brand. Whether it is AI / GEO or SEO, Social channels or more. Brand is a constant. People searching for your brand name will find you regardless of platforms, algorithms or changing technology. Strong brand do well across all platforms.