US Digital Ad Q3'26 Preview: Analyzing the Industry Debates & Framing the Operating Environment

Ahead of the Q3 2026 earnings season, Goldman Sachs lays out its industry work and channel checks on the US digital advertising market, drawing on recent company conversations including AdWeek and the September Communacopia + Technology conference. The operating environment is characterized by resilient end demand, solid-to-strong momentum exiting the quarter (especially among larger scaled players in coverage), and an accelerating structural reallocation toward lower-funnel performance channels increasingly driven by AI innovation across ad creative, engagement, placement and measurement. Five broad themes are highlighted: (1) AI is becoming the primary structural mechanism driving digital ad market share; (2) direct-response advertising remains structurally stronger than top-of-funnel brand advertising; (3) vertical trends remain healthy though budget visibility has shortened, with strength in commerce/retail, travel, autos and consumer electronics;