A new report by PricewaterhouseCoopers (PwC) has flagged Kenya’s internet advertising market as the fastest-growing in the world.
The PwC Africa Entertainment & Media Outlook 2025–2029 report, released last week, notes that the market will expand at a 16% compound annual growth rate (CAGR) through 2029. The boom is even more significant in the video sector, where advertising is projected to surge at a CAGR of 22.3%.
‘’Digital ads take the lead, Internet advertising is becoming the dominant force in the global E&M industry, with Africa, particularly South Africa, Kenya and Nigeria, experiencing rapid growth.’’ the report says.
‘’Kenya has the fastest-growing internet advertising market in the world with a 16% CAGR. ‘’
However, the report highlights a critical challenge shaping the market: 76% of the average Kenyan’s media wallet is spent on connectivity alone. This high cost of data, the report says, significantly limits consumer spending on paid subscriptions and other content.
As a result, the near-term winners in Kenya’s media landscape are expected to be businesses that do not rely on subscriptions. The report identifies ad-supported streaming (AVOD), mobile-first monetization via platforms like mobile money service M-Pesa, and casual gaming as the key areas for growth.
This trend is part of a massive digital shift across the continent, with internet advertising becoming the dominant force in the entertainment and media industry. South Africa and Nigeria are also experiencing rapid expansion, particularly in digital advertising on e-commerce retail platforms.
According to PwC, the global shift to digital is being driven by technological innovations such as programmatic buying, AI-driven targeting, the growth of connected TV (CTV), and the dominance of mobile. These formats offer advertisers a higher return on investment, better audience segmentation, and real-time analytics, pulling budgets away from traditional channels like TV, print, and radio.
Globally, PwC forecasts that internet advertising will outpace consumer spending growth and become the largest revenue stream in the sector by 2029. By that year, digital ads are expected to account for 80% of all advertising revenue worldwide.
Several African nations are on track to meet or exceed this global benchmark. Nigeria is projected to see digital ad spend reach 84% of its total market, followed by South Africa at 74% and Kenya at 64%.
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