Global advertising revenue to hit $1 trillion in 2026

• PwC has projected that global advertising revenue will reach $1 trillion in 2026
• In-game advertising is projected to lead over app-based social and casino games revenue in 2028

Global advertising revenue is projected to reach $1 trillion in 2026 and will account for 55% of total entertainment and media (E&M) revenue over the next five years, according to PwC’s Global Telecom and Entertainment & Media Outlook 2024–2028 report.

Advertising revenue surpassed consumer spending last year, the report noted, thereby becoming E&M’s second-biggest revenue generator behind fixed and mobile service payments.

PwC expects that ad spending in 2028 will nearly double that of 2020, when ad spending reached $601 billion.

This makes advertising “the real growth story” of the industry right now, according to PwC. It’s expected to widen its lead over consumer spending over the next five years.

In-game advertising on the rise

Despite the impact of app tracking transparency on mobile UA and advertising, PwC claimed advertising is increasing its share of revenue in games. Ads generated $72.4 billion in 2023, just behind app-based social and casino games revenue at $82.9bn. In-game advertising is projected to take the lead by 2028, hitting $147.9 billion at a 15.4% CAGR.

Meanwhile, app-based social and casino games revenue is forecast to grow to $106.6 billion in 2028, at a 5.15% CAGR.

The report highlighted a “global obsession” with games that has persisted through the post-pandemic era despite many companies reducing their headcounts. In fact, global revenue from games was said to have reached $227.6 billion in 2023, up 4.6%.

It’s an industry predicted to remain “among the fastest growing E&M sectors globally” and will surpass $300 billion in 2028, PwC stated. This sum will reportedly be driven largely by the Asia-Pacific region, and will more than double 2019’s games revenue.

Based on PwC’s predictions, games will account for 9% of all E&M revenue in 2028.

“The global entertainment and media industry has always thrived on technological disruption,” said PwC China global technology, media and telecommunications industry leader Wilson Chow.

“To capitalise on the many growth opportunities, it must leverage the power of new and emerging technologies such as generative AI, re-shape business and creative models, and leverage the technology for advertising.

“So far, many of the applications of gen AI in the E&M industry have focused on speed and efficiency. As we look ahead, the industry will have to focus on how gen AI can lead to greater value creation through experimenting, iterating, and scaling new solutions and processes.”