Generative AI search lifts mobile gaming ad opportunity

Consumers in major English-speaking markets are turning to generative AI for search at the expense of traditional web browsing, in a shift that LoopMe says is pushing mobile gaming into a more prominent role for digital advertising.

The adtech company has published research based on a survey of 66,819 consumers in Australia, the United Kingdom and the United States. The data shows rapid adoption of generative AI tools and a corresponding decline in time spent browsing the open web.

Respondents in all three markets reported that they are now roughly twice as likely to use generative AI for search as they were previously. Usage intensity is also rising, with a majority of consumers in each country saying they use such tools daily or several times a week.

In the US, 56% of respondents said they use generative AI daily or several times a week. The figure was 55% in the UK and 57% in Australia. Around three in ten users in each market said they use generative AI tools every day, with daily adoption levels at 30% in the US, 29% in the UK and 27% in Australia.

LoopMe reported that the relative shift towards using generative AI for search is strongest in Australia. Consumers there said they are 2.7 times more likely to use such tools for search. The multiple was 2.2 in the UK and 2.0 in the US.

Web browsing falls

The rise of generative AI is already changing online behaviour, according to the research. Nearly one-fifth of generative AI users in each market said they now spend less time browsing the web because of these tools. The share was 19% in the US, 20% in the UK and 22% in Australia.

LoopMe said that even infrequent generative AI users reported a move away from traditional search. In this group, reported web browsing time fell by between 19% and 50% across the three markets. The trend appeared across age groups rather than within a single demographic segment.

When asked about the main benefits of generative AI, nearly a third of users in all three countries selected speed. In the US, 28% of respondents cited "getting answers faster" as the top benefit, with 30% doing so in both Australia and the UK.

Respondents who reported reduced browsing time said they were redirecting that time into other activities. A growing share pointed to mobile gaming as one of the main areas where they now spend more time.

Mobile gaming gains

In Australia, 18% of generative AI users said they are spending more time on mobile gaming. The figure was 19% in the US and 21% in the UK.

The trend held across age bands. In the UK, the strongest shift was among 18-24-year-olds, 62% of whom reported spending more time on mobile gaming than before. In the US, the largest increase was among 25-34-year-olds, at 40%. In Australia, the 35-44-year-old segment showed the biggest change, at 58%.

LoopMe said that growth in mobile gaming time was also evident among older age groups. All three countries recorded an increase in mobile gaming among 55-64-year-olds.

The research found similar patterns even among infrequent generative AI users. In the US, there was a 40% net difference between casual users who said they spend more time gaming and those who said they spend less. The net difference rose to 55% in Australia and 71% in the UK.

Streaming games are gaining more interest among younger users. The survey found that the 18-24 and 25-34 age groups are the heaviest users of game streaming services in each market. LoopMe said these cohorts are likely to shape the future direction of streaming in gaming.

Advertising implications

LoopMe positions the shift in consumer behaviour as a developing opportunity for brands. The company said traditional web environments face pressure as generative AI tools reduce search-driven traffic, while mobile gaming is seeing higher engagement.

Stephen Upstone, Chief Executive and Founder at LoopMe, said gaming is becoming a more important route for brands that want to reach broad audiences across demographics.

"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," said Stephen Upstone, CEO & Founder, LoopMe.

Upstone said that responses from gamers suggest a higher tolerance for marketing messages than on the mobile web.

"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," said Upstone.