CTV ad revenue to reach $51 billion by 2029, equaling 45% of traditional TV ad spend

New Delhi: Artificial Intelligence is reshaping the entertainment and media landscape, and connected TV (CTV) is emerging as one of its biggest beneficiaries. 

According to PwC’s Annual Global Entertainment & Media Outlook 2025-29 report, CTV advertising revenue is expected to rise to $51 billion by 2029, accounting for 45% of traditional broadcast TV advertising revenue.

This marks a dramatic shift from just a few years ago. In 2020, CTV advertising represented only 5.9% of traditional broadcast TV ad spend. By 2024, that figure jumped to 22%.

What’s driving this shift? AI-assisted hyper-personalisation which tailors content and ads based on individual viewing behaviour and preferences. As digital engagement rises and users embrace smarter, more relevant ad experiences, brands are expected to shift larger portions of their media budgets to CTV platforms.

CTV includes any television device connected to the internet and capable of streaming video content, from smart TVs to plug-in devices. 

As paid subscriptions plateau in mature markets and consumer spending remains tight, advertising is poised to become the primary engine of revenue growth for the global entertainment and media (E\&M) industry, according to PwC’s latest Global Entertainment & Media Outlook.

Of the three core revenue streams analysed—connectivity, consumer spending, and advertising—advertising is expected to grow the fastest, with a projected compound annual growth rate (CAGR) of 6.1% over the next five years. This is more than three times the projected growth of consumer spending, which is estimated at 2% CAGR.

The strongest momentum is concentrated in digital ad formats, which already make up 72% of global ad revenue in 2024 and are expected to reach 80% by 2029. This shift is being driven by AI-powered targeting, hyper-personalisation, and the expansion of platforms like connected TV, mobile video, and e-commerce.

Among the fastest-growing advertising segments:

• Retail media advertising, led by search and discovery tools within e-commerce platforms, is forecast to grow at a 15% CAGR
• Social and mobile video advertising is also expected to rise 15% annually
• Connected TV in-stream internet advertising will see 14% CAGR, reflecting the growing adoption of smart TVs and streaming platforms

Non-digital revenue, including live music, events and cinema box office, leads consumer spending.

Consumers may spend more of their free time online, but they continue to spend more of their entertainment budget offline. In 2024, non-digital formats accounted for 61% of consumer revenue, a level of spend expected to broadly continue through the forecast period.

While global cinema box office spending is expected to rise from $33 billion in 2024 to $41.5 billion in 2029, consumers’ preferences are continuing to shift toward locally produced films. Globally, the top five US studios’ market share has dropped from over 60% before the pandemic to 51% in 2024.

As per the report, excluding connectivity revenues (e.g., mobile service subscriptions), the US comfortably leads as the world’s largest E&M market by revenue. It is forecast to grow at a CAGR of 3.8% until 2029, lagging below the global average of 4.2%. 

Looking elsewhere, E&M revenues in China – the second largest market – will rise at a CAGR of 6.1%, powered primarily by its internet advertising segment, with a CAGR of 8.9%. The fastest-growing markets globally continue to be in developing markets, including India and Indonesia, all with CAGRs above 7.5%. 

In India, much of the growth will stem from internet advertising, which is growing at a CAGR of 15.9%, driven by expanding internet penetration, rising 5G connectivity, and the popularity of social media and short-form video content.