Advertising’s relentless growth

The global entertainment and media sector will grow nearly 4% a year through 2029, according to PwC’s Global Entertainment & Media Outlook 2025–2029. That outpaces growth in the global economy and will lead to $577 billion in incremental new revenues in 2029. But one category is providing most of that growth: advertising. 

The other main segments of entertainment and media face headwinds, but for different reasons. Connectivity—what people pay for data or internet connections, either at home or on a mobile device—is projected to grow at slower rates, primarily because data is becoming commodified, and competition is high. Consumer spending on entertainment and media products and services, meanwhile, will grow more slowly because of economic uncertainty and macroeconomic factors, and because many people simply don’t want to pay for digital media experiences. 

Global advertising and consumer revenues (GACR) were roughly at parity in 2023. But advertising spending is growing nearly three times as fast, at a 6.1% CAGR over the forecast period against a mere 2.0% CAGR for consumer spending. By 2029, advertising is forecast to have US$300 billion more in revenues, and it will have nearly caught up to connectivity. 

Here's how marketers can leverage this growth: 

Puts ads in new places. As advertising takes ever more market share overall, the value it generates will be dispersed to new places, driven by technological innovations and shifting consumer behaviour. Advertising itself is becoming increasingly digital, and its targeting more precise, which may enable ad sellers to command higher rates. 

For example, e-commerce platforms in many markets now include ads. Amazon, which pioneered retail media as a category, reported in 2024 that its ad revenue had exceeded US$50 billion for the first time, driven largely by sponsored product searches on the core Amazon e-commerce platform. Retail advertising is shifting as well: Walmart saw its retail media advertising revenue surpass US$4 billion. In Japan, FamilyMart, a convenience store franchise chain with 16,600 outlets, has created an in-store media business using large digital signage.

Don’t underestimate consumers’ tolerance. Over-the-top video streaming services are increasingly shifting from pure subscription plays to ad-supported video-on-demand offerings. And so far, consumers have bought in. Companies like Netflix, Disney+, and Amazon Prime have all taken this approach. 

Similarly, advertising in video games—such as banner and video ads in free-to-play mobile games—is surging from 20% in 2020 to a projected 38.5% in 2029. Consumers are willing to accept their entertainment choices being interrupted by advertising if this results in a lower price—provided the ads are not so intrusive as to outweigh the benefits.

Use AI to reduce costs and target more effectively. Generative AI can drastically reduce cost and development time for ads, enabling small and medium-sized enterprises to produce TV spots on par with those of their larger competitors. At the same time, AI can target ads more effectively, spurring the growth of connected TV advertising, in which marketers target customers on internet-connected televisions and streaming devices based on interest and search histories. In 2020, connected TV advertising revenue represented just 5.9% of total traditional broadcast TV advertising; by 2029, it will reach 44.7%.