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.
"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."
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."
Methodology
The study was conducted by MediaLink between August and September 2025. It comprised 27 in-depth interviews with senior decision-makers at holding company agencies, mid-market agencies, advertisers, publishers, demand-side platforms, and supply-side platforms, as well as a survey of 69 clients representing diverse company sizes and geographic markets across North America, EMEA, and APAC. MediaLink continuously monitors the marketing industry and conducts research in partnership with clients looking to understand marketing, media, and technology trends affecting the business world.
The complete research findings will be discussed during the "Agentic AI and the Future of Brand Advertising" panel at Advertising Week New York on Thursday, 9 October.
About MediaLink
MediaLink is the most trusted advisory firm serving media and marketing. C-suite leaders and investors from these industries turn to MediaLink to grow and transform their businesses based on the firm's deep operational expertise, foresight and connectivity. MediaLink employs professionals in New York, Los Angeles, Chicago, Atlanta, Nashville and London. MediaLink is part of United Talent Agency (UTA), one of the most influential companies in global entertainment.
About LoopMe
LoopMe is the global leader in brand performance, redefining brand advertising for the digital and app ecosystem. LoopMe was the first to apply AI to brand advertising and its Intelligent Marketplace, finding solutions to industry challenges that haven't previously been solved. With consumer insights and AI at its core, LoopMe makes brand advertising better, outperforming industry benchmarks for leading global brands. Our vision is to change advertising for the better, by building technology that will redefine brand advertising. LoopMe was founded in 2012 and is headquartered in the UK, with global offices across New York, Boston, Atlanta, Chicago, Detroit, San Francisco, Los Angeles, Toronto, Singapore, Sydney, Melbourne, Dnipro, Krakow, Beijing, Shanghai and Hong Kong. For more information, please visit www.loopme.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20251009995509/en/
Contacts:
loopme@teamgingermay.com
