AI in Media: PwC Forecasts $3.5 Trillion Global Growth by 2029

The future of entertainment and media isn’t just bright, it’s powered by AI. According to PwC’s Global Entertainment & Media Outlook 2025–2029, the global E&M industry is set to hit $3.5 trillion in revenue by 2029, thanks largely to AI-driven advertising innovations that push personalization into overdrive 

What’s Fueling This Growth?

• Advertising is the turbo engine: While traditional consumer media spending is expected to grow at a modest 2% CAGR, ad revenue is projected to rise at 6.1% annually, more than triple the pace.
  
• Digital formats dominate: Ads placed on mobile, social, retail, and specifically connected TV (CTV) accounted for 72% of ad revenue in 2024, and are expected to reach 80% by 2029
  
• Connected TV shakes things up: CTV ad spend is expected to hit $51 billion by 2029, boosted by AI-powered targeting and content delivery models that make streaming even smarter.
  

 Other Stars of the Show: Gaming & Connectivity

• Gaming is roaring ahead: With revenue improving from $224 billion in 2024 to nearly $300 billion by 2029, video games are now pulling ahead of combined film and music industries, fueled by branded content, in-game ads, and esports monetization
  
• Connectivity stays steady: Mobile and internet services revenue is forecast to reach $1.3 trillion by 2029 but advertising is shrinking that gap fast
  

 Emerging Markets Take Center Stage

While the US remains the largest E&M market, emerging economies, especially India, Indonesia, and Nigeria are racing ahead with CAGRs above 7.5%, thanks to booming internet adoption, mobile penetration, and video content consumption 

How AI Is Changing the Media Playbook

1. Hyper-personalization
   AI enables platforms to tailor experiences like never before, from dynamic ad placement to recommended content that feels handpicked for you.
   
2. Content creation on steroids
   Generative AI is altering the lyrical and visual landscape, automating editing, localization, scriptwriting, and even ideation to cut costs and accelerate production.
   
3. Lower barriers, higher creativity
   AI tools are reducing production overhead and enabling smaller players to produce high-quality content, turning once-expensive campaigns into accessible storytelling
   

As PwC’s Bart Spiegel puts it:

“Advertising is emerging as the leading powerhouse of the global entertainment and media industry’s revenues… as AI transforms delivery models, democratizes content production, serves highly curated content experiences, and reduces barriers to entry.”

What This Means for Brands & Creators

• Brands must get smarter: Not bigger. AI-powered, data-driven campaigns are replacing generic ad spends. Efficiency is now in precision, not volume.
  
• Streaming services evolve or falter:As ad-supported models (like AVOD) grow, differentiation is key. And AI helps keep audience attention locked in longer.
  
• Regional players are rising: global studios are no longer the only experts, local, AI-backed content is grabbing viewers’ hearts and wallets.

Related: African AI Startup, Rwazi secures $12million for AI Powered market intel

TL;DR Table