The global entertainment and media (E&M) industry has been projected to generate $3.5 trillion in revenue by 2029, with advertising, particularly digital formats, emerging as the backbone of that growth.
This projection comes from PwC’s newly released Global Entertainment & Media Outlook 2025–2029, which shows a seismic transition in how the industry earns and evolves, powered heavily by artificial intelligence and changing consumer habits.
At the core of this growth is a gap between consumer spending and advertising revenue. While consumer expenditure across E&M is projected to grow at a modest compound annual growth rate (CAGR) of 2%, advertising is surging at 6.1% CAGR, three times faster.
This shows that the commercial logic of the industry is changing, people may be spending less, but advertisers are spending more to reach them.
AI is driving this growth from several angles. From hyper-personalised targeting across platforms to real-time analytics and automated video editing, artificial intelligence is trimming production costs and enabling producers to deliver content tailored to specific markets in ways that weren’t possible five years ago.
Digital advertising, which made up 72% of the total ad revenue in 2024, is expected to reach 80% by 2029. That growth is being driven by retail media, mobile and social video, and notably, connected TV (CTV) advertising, which is changing traditional broadcast models.
PwC forecasts that CTV ad revenue will climb to $51 billion by 2029, up from a minor share in 2020, thanks largely to AI-powered personalisation that enables precision targeting across streaming services.
Meanwhile, the video gaming sector is proving to be a revenue juggernaut of its own. By 2029, it is projected to pull in nearly $300 billion, surpassing the combined earnings of the global film and music industries. Much of that growth will be fuelled by in-game advertising, branded content, and the meteoric rise of mobile and e-sports markets.
Some of the most explosive growth is happening outside traditional Western strongholds. Emerging markets like India, Indonesia, and Nigeria are overtaking global averages with CAGRs above 7.5%. In India, internet advertising alone is growing at nearly 16% per year, driven by increasing access to 5G and surging demand for short-form video.
Beyond revenue numbers, AI is becoming integral to the creative process. Scriptwriting, localisation, audience analytics, and video editing are all being automated and optimised, reducing turnaround time and enabling production teams to serve highly segmented audiences without ballooning costs.
Bart Spiegel, Global Entertainment and Media Leader at PwC U.S., said: “There’s certain general macroeconomic pressures on individuals, families and advertising starts to subsidize a lot of that.”
He added, “[The industry] has always been at the forefront of technological innovation, but companies will need to remain nimble and proactive to embrace the future and satisfy consumers in an ecosystem that rewards creativity and tailored content.”
