Global ad revenues to hit $1.4 trillion by 2030, says PwC report

MUMBAI: The ad world is getting a bigger stage and AI is writing more of the script. Advertising is set to become the undisputed growth engine of the global entertainment and media industry, with worldwide ad revenues projected to reach $1.4 trillion by 2030, according to PwC’s Global Entertainment & Media Outlook 2026–2030.

The report forecasts that the broader entertainment and media (E&M) industry will expand to $4.2 trillion by 2030, growing at a 3.4 per cent CAGR and adding nearly $600 billion in new revenues over the next five years. Driving that growth will be a powerful mix of AI-powered advertising, digital ecosystems and a renewed appetite for live experiences.

Advertising has already crossed a landmark threshold. Global ad spend surpassed $1 trillion for the first time in 2025 and is expected to grow at a 5.6 per cent CAGR through 2030, outpacing both consumer spending and connectivity revenues. By 2026, advertising is projected to become the industry’s second-largest revenue segment, behind only connectivity services.

According to PwC, advances in AI-driven hyper-personalisation are transforming how brands engage consumers, enabling advertisers to deliver highly targeted campaigns at scale while commanding stronger returns. Internet advertising alone surged 12.2 per cent in 2025 to reach $755.6 billion and is forecast to grow at a 7.2 per cent CAGR through the end of the decade.

“Advertising continues to remain a powerhouse driving the global entertainment and media industry’s revenues,” said Bart Spiegel, Global Entertainment & Media Sector Leader at PwC, noting that AI-powered personalisation is reshaping audience engagement across platforms, including streaming services.

While advertising races ahead, some of the industry’s traditional pillars are beginning to slow.

Connectivity revenues, which include consumer spending on internet access and remain the largest E&M category, are projected to grow at a modest 2.3 per cent CAGR, rising from $1.3 trillion in 2025 to $1.5 trillion by 2030.

Streaming continues to expand, but not without growing pains. Global OTT revenues are expected to rise at a 6.1 per cent CAGR, though PwC warns that mature markets are showing signs of subscription fatigue. To counter slowing growth, streaming platforms are increasingly embracing ad-supported tiers, bundled subscriptions and industry consolidation.

Advertising currently contributes 19.4 per cent of OTT revenues, a figure expected to increase to 22.6 per cent by 2030, supported by a robust 9.4 per cent CAGR in streaming ad revenues.

Meanwhile, traditional television continues to lose ground. Global TV revenues declined 2.7 per cent in 2025 to $360.5 billion and are forecast to fall further to $341.2 billion by 2030, shrinking at an annual rate of 1.1 per cent as audiences migrate to digital and mobile-first platforms.

Cinema’s recovery remains steady but gradual. Global box office revenues are expected to grow at a 3.5 per cent CAGR to reach $39.5 billion by 2030, inching closer to pre-pandemic levels. However, growth is being driven largely by higher ticket prices rather than audience volumes, with admissions forecast to rise by only 1 per cent annually.

Regionally, Asia-Pacific is expected to lead box office expansion, growing from $13.8 billion in 2025 to nearly $17 billion by 2030, ahead of both EMEA and North America.

Beyond screens, consumers are increasingly spending on experiences they can feel rather than stream.

PwC projects that segments such as live music, trade shows, out-of-home advertising and betting will collectively grow at a 5.2 per cent CAGR, reaching $294 billion by 2030. Live music revenues alone are expected to exceed $41.5 billion, while trade show spending is forecast to climb from $38 billion to $44.6 billion over the same period.

One of the fastest-growing segments is online betting and gambling, which has already overtaken cinema in revenue terms. Across ten regulated markets studied by PwC, online gambling revenues more than doubled between 2021 and 2025 and are projected to reach $119.7 billion by 2030, growing at an impressive 8.5 per cent CAGR.

The message from PwC’s outlook is clear: the future of media is increasingly advertising-led, AI-powered and digitally distributed, while consumers continue to place growing value on immersive, real-world experiences.

In an industry being reshaped by technology and changing habits, the biggest winner may not be the content itself but the advertising ecosystem increasingly powering it.