Artificial intelligence is transforming the ad models that drive hyperpersonalized ads. Advertising spending grows three times faster than entertainment and media consumer spending (2%) (6.1%). The Global Entertainment & Media (E&M) industry is projected to reach $3.5 trillion in 2024, with a surge in ad spending across the platform to reach $3.5 trillion in 2029.
“Non-digital categories such as live music, film and events continue to lead revenue in the consumer sector, which accounts for 61% of sector spending in 2024.”
“Global film revenue is expected to increase from $33 billion in 2024 to $42 billion in 2029. International audiences continue to spend more on locally produced films.”
“Global video game revenue forecasts have increased from $224 billion in 2024 to $300 billion in 2029, combining revenues for the film and music industry.”
The E&M industry is projected to grow at a combined annual growth rate (CAGR) of 3.7% until 2029.
“As the E&M industry continues to be affected by wider economic uncertainty and constrained consumer spending, advertising has emerged as a major powerhouse in global entertainment and revenues for the media industry. We expect the AI transformation model to continue.
“The E&M industry is always at the forefront of innovation, but businesses need to be agile, proactive and proactive in embracing the future and satisfying consumers, with an ecosystem that rewards creativity and customized content.”
According to forecasts, advertising will become a key driver of revenue growth for the E&M industry, as the growth of paid or subscription products will slow down amidst industry competition and increased constrained consumer spending, particularly in mature markets.
Of the three major E&M categories analyzed (connections, ads, consumers), ads are expected to grow at the fastest. This is three times faster (6.1% CAGR) than the consumer category (2%).
The fastest growing E&M revenue metrics over the next five years are all ad-driven, including retail ads (15%), social and mobile on-stream video ads (15%), and connected in-television internet ads (14%).
Digital formats, which account for 72% of overall advertising revenue in 2024, will increase to 80% in 2029, with new technologies, including AI and hyperpersonalization, expected to further drive this.
High-growth sectors include e-shopping retail search ads (up from 32.7% in 2020 to 45.5% in 2029) and video game ads (up from 32.8% in 2024 to 38.5% in 2029).
“AI has impacted the E&M industry in many ways. One area that is likely to affect revenue growth is connected television (television that connects to the internet to stream video content). End-user ingestion, connected television ad revenues rose to $51 billion in 2029, representing 45% of traditional broadcast television ads,” the forecast said.
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