Media and Entertainment revenues predicted to peak at a staggering $3.5 trillion by 2029, according to PwC.
Global Media and Entertainment Industry Poised for Strong Advertising Growth
The global media and entertainment (E&M) industry is on an upward trajectory, with total revenues expected to reach a whopping $3.5 trillion by 2029, according to the PwC Global Entertainment and Media Outlook 2025-29. This represents a compound annual growth rate (CAGR) of 3.7% over the next five years.
One of the key drivers behind this growth is the advertising sector. Advertising spend is forecasted to grow at around 6.1% CAGR through 2029, outpacing consumer spending significantly. Digital advertising formats will make up an impressive 80% of total advertising spend by 2029, illustrating the shift away from traditional media to digital channels.
Connected TV (CTV) advertising is a standout growth area within the digital advertising realm. By 2029, CTV ad revenue is expected to reach $51 billion, representing 45% of traditional TV advertising revenue. This represents a strong CAGR of around 14% to 15% for CTV in-stream ads, reflecting changing consumer media consumption patterns increasingly favoring streaming.
Artificial intelligence (AI) is playing a pivotal role in this growth, enabling hyper-personalization of content and ads based on consumer behavior and preferences. AI is transforming delivery models, making advertising more efficient and tailored across platforms, especially in connected TV and digital media segments.
Other rapidly growing advertising segments include retail media advertising, with a CAGR of about 15%. Economic uncertainties and consumer spending constraints are impacting the E&M industry, but advertising is expected to continue driving growth.
Bart Spiegel, global entertainment and media leader at PwC US, stated that advertising is emerging as the leading powerhouse of the global entertainment and media industry's revenues. He emphasized that companies in the E&M industry will need to remain nimble and proactive to embrace the future and satisfy consumers in an ecosystem that rewards creativity and tailored content.
Spiegel also mentioned that AI is expected to transform delivery models, democratize content production, serve highly curated content experiences, and reduce barriers to entry in the E&M industry.
In summary, the advertising sector within the global media and entertainment industry is set to be characterized by strong and accelerating growth in the coming years, driven by digital and AI innovations, particularly focused on connected TV as a prominent platform. Companies in the E&M industry will need to adapt and innovate to remain competitive in this dynamic landscape.
*References:*
[1] PwC Global Entertainment and Media Outlook 2025-29 [2] Ad Age [3] Variety [4] Digiday
Note: This article is a computer-generated summary of the provided bullet points and does not contain any human-written additions or opinions.
- The growing adoption of technology, particularly artificial intelligence (AI), is revolutionizing the advertising sector within the global media and entertainment (E&M) industry, allowing for hyper-personalization of content and ads based on consumer behavior and preferences.
- Amidst the projected growth of the global E&M industry, the digital advertising segment, specifically connected TV (CTV) advertising, is poised to witness exceptional growth, with CTV ad revenue anticipated to reach $51 billion by 2029.
