Advertising revenues to drive global E&M Industry towards $3.5 Trillion by 2029: Report

The global entertainment and media (E&M) industry is expected to reach US $3.5 trillion in revenue by 2029, up from nearly $3 trillion in 2024, according to PwC’s Annual Global Entertainment & Media Outlook 2025–29 released on July 24. The report attributes the growth primarily to rising advertising spending across platforms.

The industry is projected to grow at a compound annual growth rate (CAGR) of 3.7% until 2029. However, growth remains lower than pre-pandemic levels, with economic uncertainty and slow consumer spending likely to affect expansion through the forecast period.

Bart Spiegel, Global Entertainment and Media leader at PwC US said, “As the E&M industry continues to be impacted by broader economic uncertainty and constrained consumer spending, advertising is emerging as the leading powerhouse of the global entertainment and media industry’s revenues – a transformation expected to continue as AI transforms delivery models, democratises content production, serves highly curated content experiences, and reduces barriers to entry. The E&M 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.”

Advertising identified as primary growth driver

As subscription based revenue slows due to increased competition and limited consumer spending, advertising is expected to be the main contributor to E&M revenue growth. Among the three major E&M categories (connectivity, advertising, and consumer) advertising is projected to grow the fastest at a CAGR of 6.1%, compared to 2% for consumer spending.

Retail advertising and digital ad formats such as social and mobile video and connected TV are among the fastest-growing segments, each expected to grow at 14–15% CAGR over the next five years. Digital formats made up 72% of all ad revenue in 2024 and are forecast to rise to 80% by 2029. Retail search advertising is projected to grow from 32.7% in 2020 to 45.5% in 2029, and advertising in video games from 32.8% in 2024 to 38.5% in 2029.

Connected TV advertising is also increasing in significance. In 2020, it represented 5.9% of traditional broadcast TV ad revenue, growing to 22% in 2024. This figure is expected to reach $51 billion by 2029, equivalent to 45% of traditional broadcast TV advertising.

Connectivity 

Connectivity continues to be the largest category, with spending reaching US$1.3 trillion in 2029, growing at CAGR of 2.8% and driven mainly by mobile internet service revenue. However, the faster growth rate in advertising is expected to reduce the gap between connectivity and advertising spend.

Non-digital spending

Despite increased time spent online, non-digital formats continue to lead in consumer spending. In 2024, they accounted for 61% of consumer revenue, a trend expected to remain stable through 2029. Cinema box office revenue is forecast to rise from $33 billion in 2024 to $41.5 billion in 2029, though the market share of the top five U.S. studios has dropped from over 60% pre-pandemic to 51% in 2024, reflecting growing interest in locally produced films.

Commenting on the report, Wilson Chow,Global Technology, Media and Telecommunications (TMT) leader at PwC China said, “Consumers have never had as numerous or diverse choices of entertainment services on offer, but this competition, paired with economic uncertainty and rising costs, is seeing consumer spend growth stagnate. If entertainment and media businesses are to capture new audiences and generate growth, they must be thinking about the connected ecosystems in which they operate, leveraging the power of advertising and AI, the combination of which is allowing for far more cost-effective and personalised content creation and engagement models.”

Video gaming 

The global video gaming sector generated $224 billion in revenue in 2024, surpassing the movie and music industries combined. It is expected to reach nearly $300 billion in 2029 at a CAGR of 5.7%.

Developing markets 

Excluding connectivity revenues, the U.S. remains the largest E&M market, with a projected CAGR of 3.8% through 2029, below the global average of 4.2%. China, the second-largest market, is expected to grow at a CAGR of 6.1%, mainly driven by internet advertising (8.9% CAGR). Markets such as India and Indonesia are forecast to grow at over 7.5% CAGR. In India, internet advertising is expected to grow at 15.9% CAGR, supported by higher internet access, 5G rollout, and increased use of social media and short-form videos.