CTV advertising revenue projected to reach US$51 billion by 2029: PwC report

Connected TV (CTV) is fast emerging as one of the most transformative segments within the global entertainment and media (E&M) industry, according to PwC’s Global Entertainment & Media Outlook 2025‑29 released today.

In 2020, CTV advertising revenue accounted for just 5.9% of total traditional broadcast TV advertising. That figure rose to 22% in 2024, and is projected to reach US$51 billion by 2029 equalling 45% of broadcast TV advertising – driven by digital engagement and AI-assisted hyper-personalisation, the report said.

PwC expects advertising to be the most powerful engine of growth for the E&M industry over the next five years, growing at a compound annual growth rate (CAGR) of 6.1% — three times faster than consumer spending (2%). AI is set to transform advertising delivery, enabling more curated content experiences and reduced barriers to entry, particularly across retail, social, mobile video and CTV platforms.

Among the fastest-growing ad-driven revenue streams are retail advertising (15% CAGR), social and mobile on-stream video advertising (15%), and CTV in-stream internet advertising (14%). Digital formats, which represented 72% of total ad revenue in 2024, are forecast to rise to 80% by 2029. Retail search advertising in e-commerce is expected to grow from 32.7% of ad share in 2020 to 45.5% in 2029, while in-game advertising is set to rise from 32.8% in 2024 to 38.5% in 2029.

Overall, the global E&M industry is projected to reach US$3.5 trillion in revenue by 2029, up from nearly US$3 trillion in 2024, growing at a CAGR of 3.7%. While this is above the projected global economic average, it remains below the industry’s pre-pandemic trajectory. PwC attributes the moderation in growth to continued economic uncertainty, weak consumer spending, and rising global competition.

Connectivity remains the largest segment by revenue, with spending projected to reach US$1.3 trillion by 2029 (2.8% CAGR), mainly driven by mobile internet services. However, due to advertising’s higher growth rate, the gap between the two categories is expected to narrow significantly by the end of the forecast period.

Even as consumers spend more time online, non-digital formats continue to dominate actual spending. In 2024, 61% of consumer revenue came from categories such as live music, cinema and events — a trend likely to persist. Global cinema revenue is forecast to rise from US$33 billion in 2024 to US$42 billion in 2029, with international audiences increasingly gravitating towards locally produced films. The market share of the top five US studios has dropped from over 60% pre-pandemic to 51% in 2024.

The global video gaming industry remains a standout, with revenues expected to grow from US$224 billion in 2024 to nearly US$300 billion by 2029, at a CAGR of 5.7% — surpassing the combined size of the movie and music industries.

Regionally, the US remains the world’s largest E&M market (excluding connectivity), growing at 3.8% CAGR through 2029. China, the second-largest market, will grow at 6.1%, driven largely by its internet advertising sector (8.9% CAGR). Developing markets such as India and Indonesia are expected to be the fastest-growing, each clocking CAGRs above 7.5%. In India, internet advertising is projected to grow at a staggering 15.9% CAGR, fuelled by rising internet access, widespread 5G adoption, and the popularity of social media and short-form video platforms.