World leisure and media business revenues to hit US$3.5 trillion by 2029, pushed by promoting, stay occasions, and video video games: PwC World Leisure & Media Outlook

Advertising to function business engine for income development as AI transforms promoting fashions 

As development for paid or subscription merchandise slows amid heightened business competitors and constrained shopper spending – significantly in mature markets – promoting is forecast to characterize a big driver of income development for the E&M business at-large.

Of the three main E&M classes analysed (connectivity, promoting, shopper), promoting is predicted to develop quickest – thrice as quick (6.1% CAGR) as the patron class (2%).

The quickest rising E&M income metrics over the following 5 years are all promoting pushed – together with retail promoting (15%), social and cell on-stream video promoting (15%), and linked TV in-stream web promoting (14%). Digital codecs, which account for 72% of general advert income in 2024, will rise to 80% in 2029, with new applied sciences together with AI and hyper-personalisation anticipated to drive this even additional. High development areas embody retail search promoting in e-shopping (rising from 32.7% in 2020 to 45.5% in 2029) and promoting in video video games (rising from 32.8% in 2024 to 38.5% in 2029).

AI is impacting the E&M business in some ways. One of the areas during which it’s prone to affect income development is in linked TV (any tv that connects to the web to stream video content material). In 2020, linked TV promoting income equated to simply 5.9% of whole conventional broadcast TV promoting. In 2024, this determine had jumped to 22%. But with the rise of digital engagement and the prospect of AI-assisted hyper-personalisation, which can result in larger end-user uptake, linked TV advert revenues will rise to $51 billion in 2029 – equal to 45% of conventional broadcast TV promoting.  

For now, connectivity stays the biggest class, with spending reaching US$1.3 trillion in 2029, rising at CAGR of two.8% and pushed primarily by cell web service income. However, promoting’s pronounced development charges are set to see the gulf between connectivity and promoting spend quickly slim by 2029.