AI-Driven Advertising Fuels Media Growth

PwC predicts the global entertainment and media industry will reach $3.5 trillion by 2029, with AI-powered advertising serving as a major growth engine.

According to a new report from PwC, the global entertainment and media industry is on track for significant growth, with revenues projected to hit $3.5 trillion by 2029. This growth is being driven primarily by the expanding role of advertising, particularly with the integration of artificial intelligence (AI). The consulting firm’s “Global Entertainment & Media Outlook 2025-29” reveals that the industry is expected to achieve a compound annual growth rate of 3.7% over the next five years. This upward trend is also supported by the strong performance of non-digital categories like live events, which continue to attract significant consumer spending despite broader economic pressures.

Advertising’s Expanding Role

Economic uncertainty has made advertising a critical revenue driver for the entertainment and media industry. Inflationary pressures and evolving trade policies have led many consumers to reduce non-essential spending on things like subscriptions and movie tickets. In this climate, advertising has emerged as a powerhouse for revenue growth, offering a way for companies to monetize content and services. The PwC report highlights that digital formats, which made up 72% of total ad revenue in 2024, are expected to grow to 80% by 2029. New technologies such as AI and hyper-personalization are anticipated to be key factors in this expansion, enabling more targeted and effective ad campaigns.

The report also forecasts a substantial rise in ad revenue from connected TV (CTV), predicting it will reach $51 billion by 2029. This growth is directly linked to increased digital engagement and the ability of AI to deliver highly personalized ad experiences. Another sector contributing significantly is video games, with revenues forecast to grow to approximately $300 billion in 2029. Bart Spiegel, the global entertainment and media leader at PwC U.S., noted that advertising is increasingly subsidizing consumer costs, which is crucial during times of economic constraint for families.

The Future is Personalized and Proactive

The industry’s success hinges on its ability to embrace technological innovation. Spiegel emphasized that companies must remain “nimble and proactive” to satisfy consumers in an ecosystem that values tailored content and creative experiences. AI is transforming delivery models and democratizing content creation, allowing for more cost-effective and personalized content. This shift is not just about adopting a new tool; it’s a strategic imperative for businesses to remain competitive. By leveraging AI to create more intelligent, efficient, and personalized engagement, media companies can capture new audiences and drive sustained growth in a fragmented attention economy.

Interesting fact

PwC’s report also projects that advertising spending will outpace consumer spending growth by a significant margin. Advertising is expected to grow at a compound annual growth rate of 6.1%, while consumer spending is projected to grow at a much slower rate of just 2%. This highlights advertising’s role as the primary engine for the industry’s future expansion, rather than relying solely on direct consumer payments.