The digital entertainment landscape is undergoing rapid transformation driven by the need to engage and monetize consumer engagement across digital and physical platforms. As a result, business models and portfolios are in a state of flux. In the face of these unprecedented challenges and opportunities, several important trends are emerging that will shape the future of the industry.
Digital Entertainment Industry: What is it?
Digital entertainment is a fairly vague marketing term and tends to be difficult to define. But broadly speaking, it refers to entertainment technology and underlying technologies such as computers, the Internet, the World Wide Web (WWW), digital rights management, multimedia, and streaming media. The term also includes screen time in addition to pure entertainment.
Key industries that fall under the digital entertainment umbrella include streaming, video on demand, video games, and social media. Even online poker available through platforms such as Bitcoincasino and Red Tiger Gaming, which belong to the iGaming industry, can be considered a form of digital entertainment, while still having elements of gambling.
Digital entertainment marketing is one of the most profitable sectors in the world, with significant revenue growth expected to reach approximately USD 560.7 billion in 2024, according to data provided by Statista. The video game sector is expected to be the largest contributor, with a market size of USD 282.3 billion in the same year. The United States leads the global market and is expected to generate an estimated revenue of USD 198.1 billion in 2024.
Overall, digital entertainment and marketing go hand in hand, and social media users who follow influencers for entertainment are also exposed to advertising. Digital products and pop-up ads are also common in online and gaming environments. Key marketing trends that will 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 hot topic across all sectors as companies aim to be early adopters of AI. AI agents and intelligent software systems that can process multimodal information and manage complex workflows will be the focus of the next 12 months.
AI agents help with data management and processing challenges in marketing. In many enterprises, data is still spread across multiple systems, often in silos. AI agents can reduce the complexity of finding and integrating the right data, which can require a lot of technical work.
For example, home improvement company Kingfisher, which owns B&Q and Screwfix, created an AI agent by integrating its recommendation engine and Vertex AI Search with business data and conversational AI. We help customers and staff quickly get the information they need using text, audio, images, video, and more.
Traditional AI applications, such as automating front- and back-office procedures and transactions, continue to be a top priority for cost-conscious executives, especially in finance, legal, IT, and customer service.
Businesses will increase their use of GenAI to accelerate content creation, enable more effective content delivery, scale personalized marketing efforts, and increase monetization.
The marketing mix model is back
A marketing mix model (MMM) is a statistical tool used to analyze the impact of various marketing activities (advertising, promotions, pricing, distribution, etc.) on sales and other key performance indicators. Quantifying each channel’s contribution to overall performance helps businesses allocate budget effectively.
Media fragmentation, tight budgets, and ongoing privacy changes are increasing the demand for MMM. MMM is now integrating methodologies such as incremental testing and attribution to achieve an unprecedented level of granularity. This feature allows marketers to more accurately analyze media performance and identify the true drivers of success.
Accessibility is also expanding, with tools like Google’s Meridian poised to revolutionize this space. This open source MMM integrates data from platforms like Google and YouTube to provide a transparent and scalable solution. With global expansion planned for early 2025, Meridian will meet the growing demand for reliable measurement frameworks and expand its reach to include previously difficult areas such as always-on channel search. That’s what I’m aiming for.
Modern MMMs also provide faster insights, allowing marketers to quickly adapt to changes in the economy and fluctuations in consumer demand. Real-time feedback is transforming decision-making and ensuring marketing strategies are agile and relevant in an increasingly dynamic landscape.
Shoppable videos and content
Shoppable commerce is revolutionizing the way consumers discover and buy products online, with social commerce revenue expected to exceed $1 trillion by 2028. At the core of this trend is shoppable content, a type of digital media that ranges from images and videos to articles and articles. Social posts — embed purchasing options directly within your content. This integration allows consumers to make purchases without leaving the content they are viewing.
Social media platforms like Instagram, Facebook, and Pinterest are embracing this trend by integrating in-app shopping features. By doing so, businesses can provide a quick and convenient experience and reduce barriers to purchase. The main benefits of this type of marketing strategy include increased customer engagement and more potential buyers when they are not actively shopping.
Google research reveals that 60% of online shoppers feel compelled to buy from a source of inspiration, even when they’re casually browsing. This proves the power of shoppable content to turn inspiration into action by providing direct purchase opportunities. When brands adopt this strategy, they can build stronger connections with their audiences, increase sales, and stay at the forefront of this rapidly growing commerce model.
The digital entertainment industry, which includes streaming, video games, and iGaming sites like BitCasino, is therefore at a pivotal moment, shaped by technological advancements and changes in consumer behavior. Smarter AI agents, more accessible marketing mix models, and increased adoption of shoppable content are changing the way businesses connect with audiences and generate revenue. These trends offer solutions to long-standing challenges while creating new opportunities for engagement and growth. As innovation continues, companies must adapt to remain competitive in an evolving market that increasingly values personalization and convenience.
