Media and Entertainment sector revenues expected to reach $3.5 trillion by 2029, according to PwC predictions.
Article Title: The Rise of AI-Powered Connected TV Advertising in the Global Media and Entertainment Industry
The global media and entertainment (E&M) industry is on the cusp of a significant transformation, with artificial intelligence (AI) and connected TV (CTV) at the forefront of this revolution. According to PwC's Global Entertainment & Media Outlook, the industry is projected to grow from a staggering $3 trillion in 2024 to an impressive $3.5 trillion by 2029, with advertising leading the charge.
Advertising is expected to expand at a compound annual growth rate (CAGR) of 6.1%, significantly outpacing the overall industry growth rate of 3.7% and the broader global GDP growth. This growth is largely fueled by digital innovation, AI-led personalization, and shifts towards digital-first advertising formats such as CTV, retail media, gaming ads, and hyper-targeted social campaigns.
Specifically, CTV advertising is experiencing rapid expansion. In 2020, CTV advertising accounted for only 5.9% of traditional TV ad revenue; by 2024, it has grown to 22%, with projections estimating CTV ad revenue will reach $51 billion by 2029. This would represent 45% of traditional TV ad value, indicating a major shift from linear to digital streaming platforms for advertising spend.
AI is a critical factor reshaping advertising in this space. It powers enhanced personalization and recommendation engines, enabling marketers to target audiences with greater precision and deliver tailored content, boosting effectiveness and engagement. AI-driven tools are increasingly integral for content discovery and marketing, particularly in streaming and reality TV contexts, where AI explores viewing preferences to suggest highly relevant content.
Additional trends emphasize the continued migration from traditional TV to streaming platforms, with nearly 45% of TV viewing occurring via streaming as of mid-2025, further accelerating CTV's role in the advertising ecosystem. AI's influence extends beyond personalization to improving media planning and enhancing signal fidelity, enabling better targeting and measurement of campaign performance.
Bart Spiegel, global entertainment and media leader at PwC US, has stated that advertising is emerging as the leading powerhouse of global media and entertainment industry revenues. However, economic uncertainties and competition are exerting pressure on growth across paid or subscription products. Companies will need to remain nimble and proactive to embrace the future and satisfy consumers in an ecosystem that rewards creativity and tailored content.
In summary, the E&M industry is poised for a digital-first, AI-powered future, with CTV advertising at the heart of this transformation. Mobile on-stream video advertising is also expected to grow at a rate of 15%, further bolstering the industry's digital shift. As the industry edges towards the $3.5 trillion mark by 2029, companies that can adapt to these trends and harness the power of AI will undoubtedly thrive in this exciting new landscape.
References: 1. PwC’s Global Entertainment & Media Outlook 2025-29 2. IAB and WARC reports
With the rise of AI-powered connected TV advertising, the business sector in the global media and entertainment industry is Indisputably accelerating, capitalizing on digital innovation and utilizing AI-led personalization to optimize marketing strategies. This technology-driven evolution is poised to revolutionize the financial landscape of this industry, as advertising becomes the leading source of revenue.
