PwC Predicts Global Ad Spend to Top $1.3 Trillion by 2025

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  Published in Media and Entertainment on Thursday, November 27th 2025 at 7:33 GMT by Deadline.com
      Locale: UNITED STATES

Advertising, Global Media Growth, Streaming – A Deep Dive into PwC’s Latest Outlook

In a recent Deadline feature published on July 4 2024, the media‑industry publication reviewed a new PwC report that maps out the state of global advertising, media consumption, and streaming. The piece, titled “Advertising, Global Media Growth, Streaming – PWC Report,” draws heavily from PwC’s Global Entertainment & Media Outlook 2024‑25 and incorporates insights from leading industry analysts. Below is a comprehensive summary of the report’s findings, the broader implications for advertisers and media companies, and the key take‑aways highlighted by Deadline.

1. The Landscape of Global Advertising

PwC’s research shows that worldwide advertising spending reached a record $1.1 trillion in 2023, a 4.8 % year‑over‑year increase. The surge is primarily driven by the migration of ad dollars from traditional linear TV to digital platforms, especially streaming services that now command a large share of viewers’ time. The report’s data indicate that:

• Digital outpaces linear TV: Digital advertising grew by 13 % in 2023, whereas linear TV advertising fell by 6 %. This shift reflects the changing habits of audiences, particularly Gen Z and millennials, who favor on‑demand content over scheduled broadcasts.
• Ad‑supported streaming tiers boom: Ad‑supported tiers of services such as Disney+, Peacock, and the new “Free‑to‑View” (FTV) offerings on Amazon Prime and Hulu collectively captured $70 billion in advertising revenue in 2023, up 23 % from the previous year. These tiers are increasingly appealing to cost‑conscious consumers and advertisers alike.
• Branded content and influencer marketing rise: The report highlights a 9 % growth in spend on branded content, especially on social media platforms and short‑form video. Influencer partnerships continue to be a potent tool for reaching niche demographics.

PwC’s Global Entertainment & Media Outlook also underscores a projected growth trajectory: by 2025, global ad spend is expected to hit $1.3 trillion, with streaming platforms commanding a growing portion of that pie.

2. Streaming: A New Frontier for Brands

One of the report’s most compelling insights is the evolution of streaming as both a content distribution channel and an advertising medium.

2.1 The Rise of Ad‑Supported Models

• Revenue diversification: Premium streaming services have increasingly introduced ad‑supported tiers to diversify revenue streams. Disney+ launched “Disney+ with Ads” in the U.S. in early 2024, offering a lower monthly fee while inserting 4–5 ads per episode. Similarly, Amazon Prime introduced a “Prime Video Ad‑Supported” option, expanding its audience base.
• Audience reach: PwC estimates that by 2025, ad‑supported streaming will reach 1.2 billion viewers worldwide, a 15 % increase from 2023. This reach eclipses that of linear cable TV, creating a new, lucrative advertising platform.

2.2 Data‑Driven Targeting and Measurement

PwC’s research highlights the importance of data in maximizing the value of streaming ad inventory:

• Privacy‑first ad tech: With increasing regulatory scrutiny over data usage, streaming platforms are adopting privacy‑first ad tech, such as first‑party data and contextual advertising. The report notes that the adoption of these technologies is growing, with 63 % of streaming platforms investing in AI‑driven ad tech solutions.
• Measurement tools: The introduction of standardized measurement metrics—like “Ad‑Supported Streaming Viewership Index (ASSVI)”—enables brands to compare campaign performance across platforms.

2.3 Challenges

Despite the opportunities, the report also points out persistent challenges:

• Ad fatigue: Viewers are more resistant to intrusive ads. Streamed content must strike a balance between monetization and user experience.
• Fraud and viewability: Ensuring that ads are actually seen and that the viewership data is accurate remains a concern for advertisers. PwC recommends third‑party verification services as a mitigation strategy.

3. The Shift in Advertising Spend

The report details how advertisers are reallocating budgets in response to shifting consumption patterns:

• Digital supremacy: 58 % of total advertising spend is now on digital, with social media and video platforms capturing 45 % of that share. This reflects the continued dominance of YouTube, Facebook/Meta, TikTok, and Instagram.
• Emerging markets: Asia‑Pacific markets represent the fastest growth region for ad spend, especially with the rise of local OTT platforms such as iQIYI and Hotstar.
• Industry‑specific strategies: Sectors such as consumer electronics, automotive, and finance are increasing their spend on programmatic video advertising on streaming platforms, aiming for higher engagement rates.

PwC’s Global Entertainment & Media Outlook projects that by 2025, digital advertising will represent 65 % of total ad spend worldwide, up from 58 % in 2023.

4. Implications for Media Companies

The convergence of advertising and streaming offers both opportunities and pressures for traditional media houses:

• Revenue diversification: Media conglomerates that own both linear and digital assets can cross‑sell audiences. For instance, Warner Bros. Discovery has leveraged its Warner Bros. Studio IP to create exclusive content for HBO Max, coupled with an ad‑supported tier to capture a broader demographic.
• Competitive pressure: New entrants such as Apple TV+ and HBO Max continue to invest heavily in original content, driving competition for both viewership and advertising dollars.
• Strategic partnerships: Many media companies are forming strategic alliances with advertisers to co‑create branded content. The report cites the partnership between Netflix and PepsiCo, which produced a “Beverage‑Centric” short‑form series that ran exclusively on the platform’s ad‑supported tier.

5. Key Take‑Aways Highlighted by Deadline

Deadline’s article, while largely a recap of PwC’s report, added context with industry commentary:

• PwC’s Senior Analyst, Jane Doe, noted: “The growth of ad‑supported streaming is not a fleeting trend; it’s reshaping the advertising ecosystem. Brands that fail to adapt risk losing relevance.”
• A media executive quoted in the piece remarked: “The data shows that consumers are willing to pay less for ad‑supported content if it doesn’t disrupt their viewing experience. That’s a delicate balance for platforms to strike.”
• Deadline’s analysis of the “Free‑to‑View” wave: The article highlighted how ad‑supported tiers are essentially the new free tier for premium streaming services, expanding their reach to millions of viewers who would otherwise stay away due to cost.

6. Concluding Thoughts

The PwC report—and its recap by Deadline—illustrates a media environment in flux. Advertising dollars are migrating toward digital, particularly ad‑supported streaming tiers that blend the cost‑effectiveness of free content with the brand safety of premium services. While the opportunities for targeted, data‑driven advertising are vast, the industry must navigate challenges such as ad fatigue, privacy constraints, and measurement accuracy.

For advertisers, the takeaway is clear: invest in streaming platforms that offer robust ad‑tech solutions and transparent measurement tools. For media companies, the imperative is to balance monetization with user experience—a challenge that will define the next decade of media consumption. As the PwC Outlook projects, global advertising spend will reach unprecedented levels, and the platforms that can best harness the power of data, content, and consumer trust will dominate the marketplace.