MediaLink Research Shows 45% of Brands Planning Budget Shifts to Mobile In-App Within 12 Months as Generative AI Threatens Web-Based Advertising
A new global study from strategic advisory firm MediaLink, commissioned by LoopMe, reveals that 84% of surveyed marketers and programmatic ecosystem partners have observed either early indicators or significant shifts in consumer behavior away from traditional search and web browsing, driven by AI-powered answer engines.
The study of marketing leaders across North America, EMEA, and APAC, which included interviews with 27 senior decision-makers and a survey of 69 clients, shows that 45% of respondents are planning to moderately or significantly shift brand budgets toward mobile in-app advertising within the next 12 months.
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“We’re seeing a fundamental transformation in how consumers discover and consume information,” said Mark Wagman, Managing Director and Partner at MediaLink. “Web-based publishers are feeling pressure as AI platforms like ChatGPT and Perplexity change search and discovery behaviors. Smart advertisers are recognizing that mobile apps can offer a more resilient and engaged environment for brand building—one that’s less exposed to these shifts.”
Mobile Apps Offer Resilience as Web Traffic Declines
MediaLink’s analysis found that web-based publishers across multiple verticals—including Health, Education, and Lifestyle—are experiencing sustained declines in organic search traffic as consumers turn to AI tools for information. In contrast, mobile app engagement continues to grow, with consumers now spending an average of four hours per day with smartphones, most of which is spent engaging with apps.
“LoopMe is unique in that they have a differentiated product in a very competitive space where it has become increasingly difficult to stand out. Their data is unique and the survey-driven approach has no direct competitors,” said Chris Thornton, SVP, Digital Strategy, Planning and Activation & Integrated Investment, Horizon Media. “We love it for brand and mid-funnel campaigns where brand storytelling on the path to purchase is the objective.”
According to the research, advertisers view mobile in-app environments as offering several key advantages: 54% cited consumer time shifting to apps, 45% pointed to higher engagement levels, 41% highlighted improved targeting and personalization capabilities, and 30% noted declining effectiveness of web-based ads.
“The advertising industry is at a critical juncture. As AI-powered search and answer engines fundamentally reshape how consumers discover information, we’re seeing the open web’s traditional model come under unprecedented pressure,” said Tariq Hassan, Chief Marketing & CX C-Suite Executive, Advisor & Board Member. “The brands that will thrive in this new era are those recognizing that mobile apps offer a more stable, engaged environment, where you can still reach audiences at scale with measurable brand impact on business performance.”
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Data and Measurement Capabilities Now Critical for Partner Selection
The study also examined criteria driving advertiser selection of programmatic partners, revealing a decisive shift toward platforms offering proprietary audience intelligence and advanced measurement capabilities:
- 85% of respondents consider proprietary data or audience targeting capabilities to either regularly influence or be very important in partner decisions
- 77% cite measurement and analytics capabilities as critical factors
- 75% prioritize audience insights and intelligence capabilities
$18B Market Growing at Double-Digit Rate
MediaLink sized the global market for brand-focused programmatic advertising spend in mobile app, open web display, and CTV at approximately $18 billion in 2025, with projected growth of 13-15% annually through 2029. The U.S. represents 58% of this market opportunity, with EMEA accounting for 18%.
“Websites are being hit hardest by this transformation, but we see this as a positive sign for apps and the app ecosystem,” said Stephen Upstone, CEO & Founder at LoopMe. “This creates new opportunities for brands to engage with consumers in more protected and innovative environments.”
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Source – Businesswire
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