The digital entertainment landscape is undergoing rapid transformation, driven by the need to capture and monetize consumer engagement across digital and physical platforms. This has led to an evolution in 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 sector.
The digital entertainment industry: what is it?
Digital entertainment is a rather ambiguous marketing term, difficult to define. Yet, broadly speaking, it refers to entertainment technology and foundational 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 includes time spent in front of a screen.
Some key industries belonging to the digital entertainment sector include streaming, video on demand, video games, and social media. Even online poker or Red Tiger Game available through platforms like Bitcoincasino, which belongs to the iGaming industry, can be considered a form of digital entertainment while still having a gaming element.
Digital entertainment marketing is one of the most lucrative in the world and is expected to see significant revenue growth, reaching approximately $560.70 billion in 2024, according to data provided by Statista. The video game segment is expected to be the largest contributor, with a market volume of $282.30 billion in the same year. The United States is expected to become the global market leader, generating an estimated revenue of $198.10 billion in 2024.
Overall, digital entertainment and marketing are closely linked, as social media users who follow influencers for entertainment purposes are also exposed to advertising. Digital products and pop-up advertisements are also common in online and gaming environments. Some key marketing trends that will likely continue to drive the industry include smarter AI, marketing mix models, and shoppable content.
Smarter AI agents and language models
In 2025, artificial intelligence will be a priority across all industries as businesses aim to expand early adoption of AI into widespread use. AI agents and intelligent software systems capable of processing multimodal information and managing complex workflows will be the focus of the next twelve months.
AI agents can help solve data management and processing challenges in marketing. Many companies still have data scattered across multiple, often siled, systems. An AI agent can reduce the complexity of finding and consolidating the correct data, which can require a lot of technical work.
For example, Kingfisher, a home improvement company that owns B&Q and Screwfix, created an AI agent by integrating its recommendation engine and Vertex AI Search with business data and conversational AI. This agent can help customers and staff get the information they need quickly using text, voice, images and video.
Traditional AI applications, such as automating front- and back-office procedures and transactions, remain a top priority for cost-conscious executives, particularly in finance, legal, IT and customer service. .
Businesses will further use GenAI to accelerate content production, enable more efficient content distribution, develop personalized marketing initiatives, and increase monetization.
Marketing mix models are making a comeback
Marketing mix models (MMMs) 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 efficiently allocate their budgets by quantifying the contribution of each channel to overall performance.
Media fragmentation, increasingly tight budgets, and continued changes in privacy are increasing the demand for MMM. MMMs now incorporate methodologies such as incrementality testing and attribution to achieve unprecedented levels of granularity. This capability allows marketers to more accurately analyze media performance and identify the true drivers of success.
Accessibility is also growing, with tools like The Google meridian on the verge of revolutionizing the field. This open source MMM integrates data from platforms like Google and YouTube, providing a transparent and scalable solution. Scheduled for global deployment in early 2025, Meridian aims to meet the growing demand for reliable measurement frameworks while expanding its reach to include previously challenging areas like always-on channel research.
Modern MMMs also provide faster insights, allowing marketers to quickly adapt to economic changes and fluctuations in consumer demand. Real-time feedback has transformed decision-making, ensuring 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 revenue expected to exceed $1 trillion by 2028. At the heart of this trend is shoppable content, a form of digital media – ranging from images and videos to articles and social posts – that integrate purchasing options directly into the content. This integration allows consumers to make purchases without leaving the content they are interacting with.
Social media platforms like Instagram, Facebook, and Pinterest have embraced this trend by integrating in-app shopping features. By doing so, businesses can provide a quick and convenient experience, reducing barriers to purchase. Some of the main benefits of this type of marketing strategy include greater customer engagement and more potential buyers when they are not actively shopping.
A Google study reveals that 60% of online shoppers feel compelled to purchase products from inspirational sources, even when browsing casually. This demonstrates 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 audiences, drive sales, and position themselves at the forefront of this rapidly growing business model.
Therefore, the digital entertainment industry, including streaming, gaming and iGaming sites like BitCasino – finds itself at a pivotal moment, shaped by technological advances and changing 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 long-standing challenges while opening new opportunities for engagement and growth. As innovation continues, businesses must adapt to stay competitive in an evolving marketplace that increasingly prioritizes personalization and convenience.
