AI creative output surges 25–30% as mobile gaming ads flood user feeds: Report

Mobile gaming marketing accelerated sharply in 2025 as AI-driven creative production expanded at record pace, according to AppsFlyer’s State of Gaming for Marketers 2026 report. The analysis, based on aggregated and anonymized data from thousands of gaming apps globally, reveals a marketing environment where ad activity is expanding faster than player attention, creating intense competition for user acquisition.

In 2025, AI-enabled production coincided with a sharp rise in advertising activity across both iOS and Android. The report highlights that top gaming advertisers produced between 2,400 and 2,600 creative variations per quarter, representing a 25–30% year-on-year increase. This increase in creative volume is a major factor behind the surge in ad saturation, especially as user attention remains limited.

The growth in ad output was matched by rising pressure on paid acquisition channels. The report notes that paid install share increased by 10% YoY across iOS and Android, while ad impressions rose 20%. This indicates that while more users were being acquired through paid channels, there was also a sharp increase in the number of ads competing for the same user base.

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“AI has dramatically increased the speed and volume at which games and marketing assets reach the market,” said Adam Smart, Director of Product, Gaming at AppsFlyer. “The result is not a shortage of creativity, but a surplus of it. As paid activity and creative supply expand faster than player attention, marketing success depends on how effectively teams can measure, interpret, and act on an increasing volume of fragmented signals.”

AI Becomes a Daily Tool for Marketers

The report shows AI is no longer just a creative assistant; it has become a key tool for performance analysis. 46% of AI assistant queries were focused on reporting and performance breakdowns, signaling that teams increasingly rely on AI to manage the growing volume of marketing data and make faster decisions.

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India Leads Global Growth but Monetization Weakens

India emerged as one of the fastest-growing large gaming markets in 2025, with gaming UA spend rising 19% YoY. This growth positions India as a key battleground for gaming studios seeking scale, particularly in the Android segment.

However, monetization trends showed a contrasting outcome. Casual game IAP revenue fell sharply by 35%, suggesting that despite rising user acquisition spending, generating revenue from in-app purchases became more difficult.

The report also highlights a surge in hypercasual advertising in India, with hypercasual UA spend increasing 60% YoY on Android, reflecting the continued dominance of Android-led scale economics in the region.

What This Means for Gaming Marketers

AppsFlyer’s findings suggest that in 2026, success in mobile gaming marketing will increasingly depend on data-driven decision-making rather than sheer ad volume. With creative supply rising sharply and ad impressions growing at a fast pace, studios will need to focus on measurement accuracy, faster reporting, and smarter optimization.

As AI accelerates both creative production and analytics workflows, marketers face a new reality: a surplus of creative assets, more fragmented performance signals, and tougher competition for player attention.