AI-driven advertising models are forecast to increase revenues in the entertainment and media to $3.5 trillion by 2029, according to PwC’s Global Entertainment & Media Outlook 2025–29.
The report highlights a decisive shift in the industry’s growth engine, with advertising revenues expected to outpace consumer spending threefold, growing at a compound annual growth rate (CAGR) of 6.1% compared to just 2% for consumer revenues.
Much of the predicted growth is being attributed to AI, which is changing how content is created, targeted, and monetised.
Digital formats, which account for 72 % of total advertising revenue in 2024, are forecasted to rise to 80 per cent in 2029, with new technologies, including AI and hyper-personalisation, expected to drive further growth.
“AI is transforming delivery models, democratising content production, and enabling hyper-personalised experiences,” said Bart Spiegel, global entertainment and media leader at PwC US.
“Advertising is emerging as the powerhouse of the industry’s future growth.”
Areas of growth include retail media, mobile video ads, and connected TV, all increasingly shaped by real-time data and AI-driven content personalisation.
Connected TV (televisions that use the internet) advertising is also expected to grow, rising from 22% of traditional broadcast ad spend in 2024 to nearly 45% by 2029, supported by AI’s ability to curate relevant viewing experiences and measure engagement more precisely.
The report claims that as consumer spending growth plateaus, AI is allowing companies to extract more value from existing audiences.
This includes lowering content production costs, improving recommendation engines, and unlocking new ad-based revenue models.
“To compete in today’s fragmented attention economy, media businesses must embrace AI not just as a tool, but as a strategic imperative,” said Wilson Chow, PwC’s global TMT leader.
“It’s the key to unlocking growth through more intelligent, efficient, and personalised engagement.”
