AI-Powered Advertising to Fuel Global E&M Growth to $3.5 Trillion by 2029: PwC reports

Artificial intelligence is reshaping the global media landscape. Reuters reported that, according to PwC, the use of AI-powered ads in E&M growth will boost the industry’s revenue growth to $3.5 trillion by 2029. At the Global Entertainment & Media Outlook 2025-29, the consulting firm estimated a CAGR of 3.7% till 2029 for the industry.

The report outlines how AI-driven ad technology is helping brands connect more effectively with audiences, personalize content delivery, and optimize campaign performance in real time.

AI Is Changing How the Industry Works

As traditional ad formats lose their edge, more companies are turning to intelligent solutions. The report shows that AI ads boosted global media by helping platforms serve relevant content faster, improve targeting accuracy, and increase viewer engagement.

The report noted that digital media made up 72% of total ad revenue in 2024 and is expected to climb to 80% by 2029. This growth will be driven by new technologies like AI and hyper-personalization, which are helping to increase adoption across end markets.

PwC analysts highlight that smart ad models with machine learning can analyze user behavior, preferences, and past interactions in seconds. Due to increased digital engagement, PwC projects that connected TV ad revenue will be $51 billion in 2029. The subsequent resilience of the video games industry is also brought up in the report as the industry is likely to increase revenues to approximately 300 billion within the same period.

Bart Spiegel, global entertainment and media leader at PwC U.S., “There’s certain general macroeconomic pressures on individuals, families and advertising starts to subsidize a lot of that.”

Entertainment and Media Sectors Feel the Push

The demand for dynamic ad placements is strongest in video streaming, social media, and music apps. These platforms are increasingly relying on AI not just to provide ads, but also to generate creative assets automatically, such as personalized banners or video intros.

This AI-first approach is expected to boost global E&M revenue through advertising in markets like the US, India, and China. Analysts also believe that smaller markets will follow, as the tools become more affordable and integrated into existing platforms.

As companies pivot towards automation and personalization, the report concludes that E&M growth via AI-powered ads will be a key differentiator over the next five years.