European Media Sector Faces Dual Threat from Ad Downturn and AI Disruption
Europe's media landscape is bracing for a turbulent 2026 as advertising revenues decline and artificial intelligence reshapes the industry. Projected earnings growth of 6.9% for media firms lags behind the broader market's expected 10% expansion, according to Bloomberg Intelligence analyst Tom Ward.
The advertising slump has already taken its toll. WPP Plc saw a staggering 60% drop this year after revising its outlook, while ITV Plc struggles to offset £35 million in lost ad revenue. Television networks experienced mid-single-digit percentage declines in ad sales throughout 2025.
Deutsche Bank's Silvia Cuneo notes AI has emerged as an unexpected disruptor, compounding existing challenges from trade disputes and political instability. The sector's future remains uncertain as traditional revenue models erode and technological transformation accelerates.
