Marketers must wrestle with vanishing middle class in 2026: WARC

"Optimism among marketers is falling due to economic volatility, with only 54% of industry professionals believing 2026 will be better than this year, according to WARC's annual Marketer's Toolkit report. That figure marks an 11 percentage-point drop from 2024. WARC identified five areas in focus for marketers: a vanishing middle class, gambles on creator marketing, delivering escapism through in-person and digital experiences, a shift away from SEO and changing consumer milestones that are affecting audience segmentation."

"For marketers planning for 2026, the only thing certain is uncertainty as tariffs, geopolitical strife and softer consumer spending continue to roil the business, according to WARC's latest industry assessment. The research underpins a widening wealth divide that is affecting marketing fundamentals as well as the embrace of emergent but riskier media channels, such as creators and generative engine optimization (GEO) for search."

"Nearly three-quarters (73%) of marketers agree that the term "middle class" is effectively meaningless as income growth slows, costs rise and job security is threatened. As brands are faced with engaging either a high or low end of the market, WARC recommended they help guide consumers through "affordability tension," or understanding the gap between what people want and what is realistically within their means."

Only 54% of marketers expect 2026 to be better than the current year, an 11 percentage-point drop from 2024. Marketing priorities cluster around five areas: a shrinking or ill-defined middle class, increased investment in creator-led strategies, designing escapist in-person and digital experiences, a move away from traditional SEO toward generative search approaches, and changing consumer milestones that complicate audience segmentation. A widening wealth divide forces brands to address affordability tension by aligning offerings with what consumers can realistically afford while also building stronger emotional connections to retain and attract polarized customer groups.

Read at Marketing Dive