AI Powered Advertising to Drive Growth in the Global Media and Entertainment Industry
Artificial Intelligence is quickly driving the growth of global media and entertainment. According to PwC’s Global Entertainment & Media Outlook 2025-2029, the sector is set to expand steadily from $2.9 trillion in 2024 to $3.5 trillion in 2029, growing at an annual rate of 3.7%. Despite the economic challenges and less consumer spending, advertising has become the strongest driver of growth for the industry.
PwC highlights that by 2029, advertising revenue will exceed consumer spending on media and entertainment by $300 billion, changing how the industry will make its money. Digital formats have already accounted for 72% of overall ad revenue in 2024 and are forecast to reach 80% by 2029. This surge is due to AI having the ability to deliver personalised data driven campaigns across TV, gaming, streaming and media platforms.
Bart Spigel, PwC’s global Media and Entertainment leader says that 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.’
The global demand for live events remains strong, meanwhile video games which are currently a $224 billion sector is projected to reach approximately $300 billion by 2029 as AI is shaping both production and consumer engagement. Retail platforms are capturing larger shares of paid search, streaming services are embracing ad supported models and gaming is seeing advertising take a bigger share of revenue.
Many are open to advertising if it lowers their costs and their ads feel relevant and not disruptive. Big retailers such as Amazon and Walmart are building their own media business by turning their shopping platforms into powerful places for ads. These changes show a big shift that the growth in media and entertainment is not only about subscriptions and ticket sales but also about building systems supported by ads where shopping, content and technology come together.
Although AI was initially expected to improve efficiency, it is important for businesses to understand how it has now unlocked new ways of working, new business models and experiences. It now has the ability to target and engage audiences in ways that were previously unimaginable.
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