The digital entertainment landscape is undergoing a rapid transformation, driven by the need to capture and monetize consumer engagement across digital and physical platforms. This has resulted in a state of flux for business models and portfolios. In the face of these unprecedented challenges and opportunities, several key trends are emerging that will shape the future of the industry.
The digital entertainment industry: What is it about?
Digital entertainment is a rather ambiguous marketing term, which tends to be challenging to define. Yet, broadly speaking, it refers to entertainment technology and fundamental technologies such as computers, the Internet, the World Wide Web (WWW), digital rights management, multimedia, and streaming media. In addition to pure entertainment, the term encompasses screen time.
Some key industries belonging to the digital entertainment umbrella include streaming, video-on-demand, video games, and social media. Even online poker or Red Tiger Gaming available through platforms like Bitcoincasino, which belongs to the iGaming industry, can be regarded as a form of digital entertainment while featuring an element of gambling.
Digital entertainment marketing is one of the most lucrative ones worldwide, and it’s projected to experience significant revenue growth, having reached around US$560.70 billion in 2024 according to data supplied by Statista. The video games segment is expected to be the largest contributor, with a market volume of US$282.30 billion in the same year. The United States is anticipated to lead the global market, generating an estimated revenue of US$198.10 billion in 2024.
Overall, digital entertainment and marketing are closely linked, as social media users following influencers for entertainment are also exposed to advertising. Digital merchandise and pop-up ads are also common in online and gaming environments. Some key marketing trends that will likely continue to boost the industry include smarter AI, marketing mix models, and shoppable content.
Smarter AI Agents and language models
In 2025, artificial intelligence will be a focus across all sectors as businesses aim to expand early AI adoption into widespread use. AI agents, and intelligent software systems that can process multimodal information and manage complex workflows, will be the focus of the next twelve months.
AI agents can assist with the difficulties of data management and processing in marketing. Many businesses still have data dispersed across several systems, which are frequently siloed. An AI agent can cut through the complexity of finding and consolidating the correct data, which can require a lot of technical work.
For instance, Kingfisher, a home improvement company that owns B&Q and Screwfix, created an AI agent by integrating their recommendation engine and Vertex AI Search with business data and conversational AI. This agent can assist customers and staff in swiftly obtaining the information they require by utilizing text, voice, images, and video.
Traditional AI applications, such as automating front- and back-office procedures and transactions, continue to be top priorities for cost-conscious executives, especially in finance, legal, IT, and customer service.
Companies will increase their use of GenAI to accelerate content production, enable more effective content distribution, expand personalized marketing initiatives, and increase monetization.
Marketing mix models make a comeback
Marketing Mix Models (MMM) are statistical tools used to analyze the impact of various marketing activities (such as advertising, promotions, pricing, and distribution) on sales or other key performance indicators. They help businesses allocate budgets effectively by quantifying the contribution of each channel to overall performance.
Media fragmentation, increasingly tight budgets, and ongoing privacy changes increase the demand for MMMs. MMMs now integrate methodologies like incrementality testing and attribution to achieve unprecedented levels of granularity. This capability allows marketers to dissect media performance more precisely, identifying success’s true drivers.
Accessibility is also expanding, with tools like Google’s Meridian poised to revolutionize the field. This open-source MMM integrates data from platforms like Google and YouTube, offering a transparent and scalable solution. Set for a global rollout in early 2025, Meridian aims to meet the rising demand for reliable measurement frameworks while extending its scope to include previously challenging areas like always-on channel Search.
Modern-day MMMs also deliver quicker insights, enabling marketers to adapt swiftly to economic shifts and fluctuations in consumer demand. Real-time feedback has transformed decision-making, ensuring that marketing strategies remain agile and relevant in an increasingly dynamic landscape.
Shoppable video and content
Shoppable commerce is revolutionizing the way consumers discover and purchase products online, with social commerce revenues projected to exceed US$1 trillion by 2028. At the core of this trend lies shoppable content, a form of digital media – ranging from images and videos to articles and social posts — that embeds purchasing options directly within the content. This integration allows consumers to make purchases without leaving the content they are engaging with.
Social media platforms like Instagram, Facebook, and Pinterest have embraced this trend by integrating in-app shopping features. By doing so, businesses can offer a fast and convenient experience, reducing barriers to purchase. Some of the main benefits of this sort of marketing strategy include greater customer engagement and more potential buyers when they are not actively shopping.
Research from Google reveals that 60% of online shoppers feel compelled to buy products from sources of inspiration, even during casual browsing. This evidences the power of shoppable content to turn inspiration into action by providing direct purchasing opportunities. As brands adopt this strategy, they can build stronger connections with their audience, drive sales, and position themselves at the forefront of this rapidly growing commerce model.
Therefore, the digital entertainment industry —including streaming, video games, and iGaming sites like Bit Casino —is at a pivotal moment, shaped by technological advancements and shifting consumer behaviors. Smarter AI agents, more accessible marketing mix models, and the growing adoption of shoppable content are transforming how businesses connect with audiences and generate revenue. These trends offer solutions to longstanding challenges while unlocking new opportunities for engagement and growth. As innovation continues, businesses must adapt to stay competitive in an evolving market that increasingly prioritizes personalization and convenience.
