PwC: AI-Powered Ads to Drive $3.5 Trillion Revenue in Global Entertainment & Media by 2029
The global entertainment and media (E&M) industry is on track to reach $3.5 trillion in revenue by 2029, fueled largely by the growing use of AI-powered advertising, according to PwC’s Global Entertainment & Media Outlook 2025–2029, released Thursday.
PwC projects a compound annual growth rate (CAGR) of 3.7% for the sector over the next five years, with artificial intelligence and hyper-personalisation reshaping how brands connect with consumers.
Digital Advertising to Dominate E&M Revenue Growth
According to PwC, advertising will be the key driver of industry growth, particularly digital formats, which made up 72% of total ad revenue in 2024 and are expected to climb to 80% by 2029.
New technologies such as AI, machine learning, and targeted content are enabling hyper-personalised ad experiences, increasing user engagement and boosting advertiser ROI. This shift is especially pronounced in areas such as:
- Connected TV (CTV): Ad revenue from CTV is forecast to hit $51 billion by 2029, driven by digital-first consumer habits.
- Streaming platforms and social media ads: Leveraging AI for dynamic ad insertion and real-time personalisation.
“Advertising is emerging as a significant driver of revenue growth,” PwC stated, noting that ad-supported models are helping offset declines in subscription-based services amid economic headwinds.
Live Events and Non-Digital Categories Also Contribute
While digital dominates, non-digital segments such as live events are also making a comeback and will support industry expansion. As inflation and global economic uncertainty pressure household budgets, consumers are becoming more selective with spending on:
- Streaming subscriptions
- Movie theatre outings
- Paid news and gaming platforms
“There are general macroeconomic pressures on individuals and families, and advertising starts to subsidize a lot of that,” said Bart Spiegel, Global Entertainment & Media Leader at PwC U.S.
The Role of AI in Shaping the Future of Entertainment
PwC’s report emphasises that the entertainment and media industry must remain “nimble and proactive” to capitalise on technological innovation, especially as AI becomes integral to consumer engagement strategies.
From automated content creation to real-time audience targeting, AI is reshaping everything from content production to distribution and monetisation. “The industry has always been at the forefront of technological innovation,” Spiegel added, “but companies must adapt quickly to satisfy consumers in an ecosystem that rewards creativity and tailored content.”
