AI-Powered Advertising Set to Drive $3.5 Trillion Boom in Global Media Industry by 2029 – PwC Report

Artificial intelligence is emerging as a major growth engine for the global entertainment and media industry, with revenue projected to hit $3.5 trillion by 2029, according to PwC’s latest Global Entertainment & Media Outlook 2025–29. The sector is expected to grow at a compound annual rate of 3.7%, driven not only by digital transformation but also a revival in live, in-person events.

As inflation and economic uncertainty dampen consumer spending on entertainment subscriptions and movie outings, advertising, particularly digital advertising, is filling the gap. PwC emphasized that as household budgets tighten, brands are increasingly turning to targeted, tech-driven ad formats to reach audiences more efficiently, making advertising a key revenue lifeline for the industry.

Digital advertising is expected to make up 80% of total ad revenue by 2029, up from 72% in 2024. The adoption of AI and hyper-personalization tools is fueling this trend, allowing for more tailored content delivery. Connected TV ad revenues alone are forecast to hit $51 billion by the same year, underscoring the rising importance of streaming platforms as ad channels.

Another robust area of growth is the video gaming sector, which is expected to reach $300 billion in global revenue by 2029. This reflects ongoing consumer engagement in immersive digital environments, often fueled by AI-enhanced gaming experiences and personalized interactions.

PwC’s U.S. entertainment and media leader, Bart Spiegel, highlighted that the industry has always been “at the forefront of technological innovation.” However, he cautioned that companies must remain agile and forward-thinking to meet evolving consumer expectations. The report signals that creativity and personalization, powered by AI, will define success in the years ahead.

Source: Reuters