AI Ads to Fuel $3.5T Growth in Media & Entertainment PwC

AI Ads to Fuel $3.5T Growth in Media & Entertainment: PwC

Key Highlights from PwC’s Global Entertainment & Media Outlook 2025–29

  • Market Growth Projection:
    • Global entertainment & media (E&M) revenue is expected to reach $3.5 trillion by 2029.
    • The industry will grow at a CAGR of 3.7% until 2029.
  • Growth Drivers:
    • AI in advertising and hyper-personalization are major forces behind the projected growth.
    • Digital advertising is booming, despite economic pressure on consumer spending.
  • AI’s Role:
    • AI technologies are being used to optimize ad delivery, enhance targeting, and create personalized content.
    • AI-led ads will help businesses cut through noise and increase ROI.
  • Digital Ad Surge:
    • Digital formats made up 72% of ad revenue in 2024, projected to hit 80% by 2029.
    • Connected TV ad revenue is expected to reach $51 billion in 2029.
  • Other Revenue Streams:
    • Video games revenue will soar to $300 billion by 2029.
    • Non-digital formats like live events will also play a crucial role in growth.

Context:

  • Inflation and global trade uncertainties are pushing consumers to trim discretionary spending (e.g., subscriptions, cinema, digital).
  • Advertising is stepping up to subsidize content access and maintain business viability.

Expert Insight:

Bart Spiegel, PwC US:


“The industry has always been at the forefront of technological innovation… Companies will need to stay nimble to satisfy consumers in an ecosystem that rewards creativity and tailored content.”

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