LoopMe research: Increasing GenAI adoption paves the way for an explosion in mobile gaming ad potential

New research from LoopMe, the global leader in brand performance, reveals that consumers are twice as likely to use GenAI for search (x2 in the US and x2.2 in the UK), while it’s nearly three times in Australia (x2.7).

As AI redefines online behaviour, and the enormous implications this has for brand visibility and advertising, the solution may lie in mobile gaming. While the adoption of AI tools is leading to a decline in clicks and associated site traffic, the story is different in gaming. This channel is on the rise, offering a scale that encompasses all demographics, alongside engaged and receptive audiences.

LoopMe surveyed 66,819 consumers across Australia, the United Kingdom, and the United States to gauge GenAI usage. The data shows the majority are now using these tools daily or at least several times a week (US: 56%, UK: 55%, Australia: 57%). For those using tools daily, similar patterns emerge, with approximately three in ten adopters falling into this group (Australia: 27%, UK: 29%, US: 30%).

Nearly one-fifth of GenAI users across all three markets report spending less time browsing the web because of AI tools (US: 19%, UK: 20%, and Australia: 22%). Even among infrequent GenAI users, there’s a move away from traditional search, resulting in web browsing falling by 19%-50% across the markets. This shift isn’t limited to specific demographics but plays out across all age groups, indicating a move towards embracing AI and a corresponding reduction in browsing time to varying degrees.

Nearly a third of users (28% in the US and 30% in Australia and the UK) across all three countries cite ‘getting answers faster’ as the number one benefit of GenAI. This reduction in browsing time online is freeing them up for other pursuits. And one of these appears to be more time for gaming: In Australia, 18% cited that they are spending more time on mobile gaming, while in the US, it’s 19% and rising to 21% in the UK.

Again, this is a trend across all age groups and markets. While the greatest shift in the UK is seen among 18-24-year-olds, with 62% spending more time on mobile gaming rather than less, in the US it’s the 25-34-year-olds (40%). Meanwhile, for Australians, it’s the 35-44-year-old demographic (58%). However, growth is being experienced across all age bands, with all three countries seeing strong mobile gaming growth even among the 55–64-year-olds.

This growth can also be seen among infrequent GenAI users too. In the US, there is a 40% net difference between those casual GenAI users who spend more time gaming and those who spend less, rising to 55% in Australia and 71% in the UK.

When asked about streaming games, there is more preference among younger age groups. While there are country variations, the 18-24 and 25-34-year-old age groups are the heaviest users of streaming games, and these groups will likely drive its future potential.

“What the research highlights is the advertising opportunities opening for brands as gaming becomes a key route to market. This is a medium that’s being embraced by all age groups and all demographics. And it’s increasing among frequent AI users as well as more casual ones, offering brands the potential to get in front of audiences that other channels might not serve well,” commented Stephen Upstone, CEO & Founder at LoopMe.

“We’ve found that gamers are more than three times as likely to be receptive to advertising in this environment compared to the mobile web. And because audience value and the opportunities gaming offers are out of alignment with current advertising investment in the channel, this lack of competition only adds to its attractiveness. As digital advertising adjusts to this era of AI, mobile gaming is shedding its bit player role and moving centre stage, delivering scale and reach that competes with traditional broadcast channels.“