A Jefferies survey of 30 advertisers in the second quarter shows AppLovin (NASDAQ:APP) expanded its slice of e-commerce ad budgets during 2026, rising to 11% of total spend. The firm recorded a 169 basis point increase for AppLovin between the fourth quarter of 2025 and full year 2026, the largest gain among the advertising networks included in the poll.
The data indicate AppLovin remained among the top three networks both by share of advertiser dollars and by reported return on ad spend. TikTok also registered gains, climbing 147 basis points to constitute 10% of surveyed advertisers' budgets.
Respondents attributed the shifts in platform mix to allocation decisions rather than outright cuts to major incumbents. The survey reported that Meta and Google lost share, a change Jefferies said reflected advertisers spreading budgets across more channels rather than a decline in total spend on those platforms.
Jefferies noted that the Q2 survey included a larger cohort of advertisers who began using AppLovin in the fourth quarter of 2025. Specifically, 23% of respondents said they started using AppLovin in that period, compared with 7% who reported the same in the first quarter survey. Those newer users increased their spending on AppLovin across 2026.
Adoption of AppLovin's AI-driven creative tools was notable among respondents. Half of surveyed advertisers tested the company’s generative AI end cards and AI video features, and 33% trialed full campaign setup. Six advertisers reported improved return on ad spend tied to the AI video creative tool, while four advertisers said performance rose after testing AI end cards.
On broader budget trends, the surveyed advertisers expect total direct-to-consumer advertising spend to grow 15% year-over-year in 2026. That outlook is an upward revision from the 8% growth expectation recorded in the first quarter survey. In practice, advertisers reported 12% spend growth in the second quarter and anticipate roughly the same level of expansion in the third quarter.
Survey respondents also reported higher effectiveness on specific campaign objectives. For prospecting campaigns aimed at new customers, 73% of participants said new-customer revenue increased, up from 60% in the first quarter poll. For discovery campaigns, 60% reported gains, compared with 50% in the earlier survey.
Context and implications
The Jefferies poll captures shifting allocations among digital ad networks in 2026, with AppLovin and TikTok taking measurable share as advertisers test emergent AI creative formats. The responses also reflect stronger-than-expected growth plans among direct-to-consumer advertisers, who reported mid-teens budget increases for the year.
While the survey sample is limited to 30 advertisers, the results highlight platform-level share changes and advertiser experimentation with AI tools that some respondents linked to improved campaign performance.