AI-Powered Advertising Projects to Propel Global Entertainment Revenue to $3.5 Trillion by 2029

A recent report by PwC indicates that the global entertainment and media (E&M) industry is on track to reach $3.5 trillion by 2029, fueled primarily by advancements in artificial intelligence (AI) and a substantial push towards digital advertising. The expected compound annual growth rate (CAGR) stands at 3.7%, marking a significant recovery trajectory post-pandemic despite current economic challenges.

According to the report, the digital advertising landscape is anticipated to expand from 72% to 80% of total ad revenues over the next several years. Bart Spiegel, PwC’s global leader in entertainment and media, emphasized the critical role of AI in driving innovations that ensure companies can meet evolving consumer demands amid economic pressures. Spiegel pointed out, "In times of economic uncertainty, advertising becomes a vital revenue stream that helps businesses navigate financial hurdles."

Moreover, the report highlights the expected increase in connected TV advertising revenues, which are projected to soar to $51 billion by 2029, illustrating the growing importance of streaming platforms. The video game sector is also set for significant growth, with projections indicating revenues could reach approximately $300 billion, further solidifying its stature as a principal driver in the overall E&M landscape.

Additionally, while the focus is on digital advancements, traditional sectors such as cinema are also expected to see revenue increases, with global cinema revenues projected to rise from $33 billion in 2024 to $42 billion by 2029. Non-digital sectors, including music, cinema, and live events, accounted for 61% of spending in 2024, demonstrating their ongoing relevance in a rapidly evolving industry.

The shift towards hyper-personalized advertising powered by AI technology is expected to result in a 6.1% growth in advertising expenditures by 2029, reflecting a broader trend of personalization in consumer engagement strategies. Overall, PwC’s report paints a picture of a dynamic entertainment industry where innovation through technology remains a key focus for future growth.