PwC's Entertainment and Media Outlook report has predicted the Australian ad market will grow at a rate of 2.7% to $13.18 billion by 2017.
However, ad revenue for the ailing newspaper industry is expected to plummet during the same period.
According to the PwC report, which looks at the different media divisions in Australia and their growth potential, Australia’s entertainment and media market will grow 13% by 2017 to total revenue of $35.7 billion.
The report highlights that when it comes to ad spending online and mobile advertising will represent the highest growth sectors, 44 per cent for online and 26 per cent for mobile.
Mobile interactive games will be at the forefront of the growth with a compound annual growth rate (CAGR) of 3.4% to $1.6bn by 2017.
Newspaper ad revenue (print and digital) is expected to drop by 7.5% to $1.7 billion, with circulation falling by 6.6% to $1.1 billion.
Digital newspaper advertising is expected to hit the $489 million mark in the next five years, which will represent 29 per cent of all newspaper ad revenues.
Out-of-home advertising is likely to increase at a CAGR of 3.8% to hit $654 million in 2017.
Consumer spending on entertainment and media products and services is predicted to grow 13 per cent from $19.4 billion to $22.6 billion by 2017.