The advertising landscape is undergoing a significant shift, with connected TV (CTV) rapidly gaining prominence and artificial intelligence (AI) playing an increasingly crucial role in shaping how brands reach consumers. CTV’s share of total television advertising has surged from 5.9% in 2020 to 21.5% in 2024, and is projected to reach 44.7% by 2029, signaling a fundamental change in the industry.
This growth is being further accelerated by advancements in AI, particularly generative AI, which is streamlining creative production and programmatic activation. According to Joanna Musi Alexander, General Director Digital at TelevisaUnivisión, campaigns on CTV allow for optimization of ad frequency, leading to a higher return on investment (ROI). This accessibility is also benefiting smaller and medium-sized advertisers, who can now leverage quality formats previously out of reach.
Alongside the rise of CTV, retail media – advertising on e-commerce platforms and by retailers – is reshaping the paid search market. The portion of paid search conducted on retail platforms is expected to increase from 39% in 2024 to 45.5% in 2029. Amazon surpassed $50 billion in advertising revenue in 2024, whereas Walmart exceeded $4 billion, demonstrating the growing power of these platforms in the advertising ecosystem.
Despite the expansion of digital advertising, traditional, non-digital channels continue to hold a significant share of consumer spending. In 2024, 60.8% of direct consumer expenditure was non-digital, and this is expected to remain the majority through 2029. The global box office is projected to grow from $33 billion in 2024 to $41.5 billion in 2029, while live music continues its recovery.
The gaming market also continues to expand, generating $223.8 billion in global revenue in 2024 and is forecast to approach $300 billion by 2029. Advertising within gaming – particularly in free-to-play mobile games – is becoming increasingly important, projected to rise from 32.3% of total gaming revenue in 2024 to 38.5% in 2029. The integration of AI is also impacting ad creative, enabling the automatic generation of ads tailored to individual viewer preferences, as noted in recent industry reports.
The evolution of technologies like HbbTV and models like PAIR (Publisher Advertiser Identity Reconciliation) from Google are further redefining the media ecosystem, paving the way for a more precise and automated approach to advertising.
