Global entertainment and media industry set to expand, fueled by AI-driven ad initiatives, predicts PwC.
The global entertainment and media industry is set to expand significantly over the next few years, reaching an impressive $3.5 trillion by 2029, according to a recent report by PwC. This growth, with a compound annual growth rate (CAGR) of about 3.7%, will be supported by both digital and non-digital categories, including live events.
One of the key factors driving this growth is the increasing use of artificial intelligence (AI) in advertising. AI-driven advertising enables hyper-personalised, data-driven marketing campaigns that better resonate with consumers and maximise engagement. This tailored approach helps companies capture market share despite economic pressures that reduce discretionary consumer spending on streaming, movies, and digital content.
AI leverages consumer data and preference analysis to deliver more relevant and effective ads across digital platforms, improving brand-consumer engagement and increasing advertising efficiency. Innovations such as AI-powered analytics, generative AI content creation, and AI avatars contribute to personalised messaging and campaign automation, further boosting advertising impact.
Ad revenue from connected TV is forecast to reach $51 billion in 2029, with digital formats projected to account for 80% of overall ad revenue by 2029. New technologies such as AI and hyper-personalization are expected to drive more end-market uptake in digital formats.
However, the report does not provide details on the impact of the COVID-19 pandemic on the industry's growth projections, nor does it specify the growth rate for specific regions or countries, live events, or non-digital categories.
Bart Spiegel, global entertainment and media leader at PwC U.S., noted that macroeconomic pressures may lead to advertising subsidising consumer spending. He also emphasised that the industry's future success will be rewarding creativity and tailored content. Spiegel further stated that the industry needs to remain nimble and proactive to embrace technological innovation and satisfy consumers.
The rapid expansion of the AI in branding market itself is another significant factor. From $2.86 billion in 2024, the market is expected to grow to $5.64 billion in 2029, with a CAGR of around 14.5%. This growth is driven by increased digital advertising spend, better customer data access, and the adoption of AI-powered marketing tools that enable large-scale, hyper-personalised campaigns.
In summary, artificial intelligence is enhancing advertising effectiveness through personalised, automated, and data-rich approaches, contributing significantly to revenue growth and poised to drive the entertainment and media industry to $3.5 trillion by 2029 despite economic challenges. The report, published on Thursday, predicts this growth will be supported by both digital and non-digital categories. However, it does not specify the growth rate for non-digital categories or the impact of the COVID-19 pandemic on the industry's growth projections.
The integration of artificial intelligence in advertising contributes to the growth of the entertainment and media industry by enabling hyper-personalized, data-driven marketing campaigns, boosting advertising efficiency and brand-consumer engagement. This development, alongside new technologies like AI, is expected to drive an increase in digital ad revenue, with connected TV ad revenue forecast to reach $51 billion by 2029. Furthermore, the AI in branding market is projected to grow rapidly, from $2.86 billion in 2024 to $5.64 billion in 2029, fueled by increased digital advertising spend and the adoption of AI-powered marketing tools.
