AI's Revolutionary Role in Mobile Gaming and Licensing

Kevin Bahler
PR Manager, Blog contributor
There’s no question that artificial intelligence (AI) is already shaking up several industries worldwide. In the gaming sector, AI is poised to evolve mobile gaming experiences for players and advertisers alike. AI’s ability to understand, predict, and act offer amazing opportunities for personalized gameplay and more effective advertising.

Brand licensing is poised to expand rapidly in the mobile game market by integrating AI systems. These digital tools can help to determine ideal partners, dynamically adjust marketing efforts, and make recommendations based on deep data-driven analysis. Read on to see how AI could be used to significantly improve mobile gaming and licensing experiences for gamers, developers, and brand collaborators all at once.
How AI can Revolutionize
Mobile Games
Most mobile games run on the freemium model, which means that the game is free to play, but subsidized by showing ads and/or selling premium items for real money. Because of this business model, mobile game developers must balance earning ad revenue and keeping players happy enough to log in every day. AI has the ability to improve the player’s experience while also making advertising more effective.
Personalized Gaming Experiences
The most popular mobile games keep player engagement high by mastering the difficulty curve. A game can’t be so easy that it’s boring, nor so hard that players rage quit. Games could use AI to implement dynamic difficulty adjustment. This would analyze player performance and other subtle metrics to shift the difficulty up or down in order to keep engagement as high as possible, for as long as possible.

Similarly, AI could dynamically adjust the loot rewards based on player actions and reactions. Struggling players might be rewarded with items to encourage them to keep trying a challenging level one more time and get the victory. On the other hand, the flow of freebies could be reduced to encourage players to purchase more premium items.

One of the most jaw-dropping innovations in 2023 was the game Origins, a short detective story created by Inworld AI. The player arrives on the scene and uses their own voice to talk with witnesses and gather clues. The wow factor is that the non-player characters (NPCs) use a combination of AI and voice synthesizers to respond to what the player actually says instead of using pre-recorded generic dialogue. Origins marks a huge step for AI-powered gaming experiences.
AI-Enhanced In-Game Advertising
Sentiment-Responsive Advertising:
As mentioned earlier, games must retain regular players, and intrusive advertising can frustrate players, pushing them away. AI systems can be developed to analyze real-time player reactions to ad content, such as putting their phone down, looking away from the screen, or muting the sound. This analysis can determine the level of interest in the ad and decide whether to show it more frequently or stop showing it entirely.

Context-Aware Advertising:
By studying the context around player actions (i.e. what is going on in the game that causes players to act in certain ways), AI systems can strategically place offers alongside significant player milestones.

For example, if a player must repeat a level several times due to the difficulty, then they will feel exceptionally accomplished when they finally win. AI can recognize this situation and display a special branded promotion alongside the victory. Players will be more likely to engage with the offer because they want to celebrate their victory and reward themselves.

As AI gets better at recognizing these situations, targeting can become more sophisticated and effective, all while minimizing player dissatisfaction. Using the same situation of a difficult level, AI will become better at knowing when players are most willing to make an in-game purchase just to clear the challenge. By presenting offers at this perfect moment, conversion rates can increase with fewer total ad impressions.
Integrating AI to Benefit
Brand Licensing
As artificial intelligence makes its way into mobile gaming, brand licensing and collaborations will also be boosted by this tool. With its ability to process large amounts of data and recognize patterns at all levels of scale, AI can bring significant benefits to licensing such as:

As artificial intelligence makes its way into mobile gaming, brand licensing and collaborations will also be boosted by this tool. With its ability to process large amounts of data and recognize patterns at all levels of scale, AI can bring significant benefits to licensing such as:

  • Data-Driven Licensing Decisions – Analyze market trends and customer data to find the most compatible and popular brands for partnerships faster than others do, and quickly sign a contract or register intellectual rights before others get there first.
  • Automated Contracting and Negotiations – Minimize time spent on contracts and ensure favorable terms for all parties based on industry standards.
  • Compliance Detection and Enforcement – Modern AI algorithms like YouTube’s Content ID system can continuously search for unauthorized use of intellectual property and take action on any infractions. These models can detect counterfeits of any IP all across the internet and enforce legal compliance.
  • Dynamic Licensing Models – Adjust royalty rates or marketing strategies in real time, based on game performance and audience reception.
  • Analytics and Predictive Insights – Discover how branded content performs within games, and get recommendations to improve player satisfaction and conversions. Quick tests taken with small audiences can determine if a project will be successful at scale.

AI-powered tools can automate, optimize, and simplify these tasks. Their purpose is to eliminate the guesswork from creating projects with strong public enthusiasm that benefit everyone involved.

Working with a Licensing Agency
for Mobile Games
Tapping into the mobile game market requires significant time and energy to learn about the most popular titles in each genre and the mechanics of their in-game economies. That’s why many brand owners and managers prefer to work with a licensing agency like Play Management Company (PlayMGT), which offers all-inclusive services.

Licensing agencies help brands find their ideal mobile game partner, develop custom-tailored collaboration initiatives, and ensure successful project implementation. Discover how PlayMGT can connect your brand with millions of highly-engaged gamers worldwide. Contact the team at PlayMGT today to get started.
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