In the first half of 2023, more than 350 brands had activated in virtual worlds like Roblox, Fortnite, Minecraft and ZEPETO. By the end of the year, that number had more than doubled.
So, what’s behind this rapid growth? Why are so many brands investing in gaming and virtual worlds? Is it really an immersive evolution of social media? And will 2024 be the year it’s recognized as an essential channel for brand marketers?
1. Gen Z and Gen Alpha are more engaged in gaming than social media.
We live in an attention economy. As such, video games are no longer just entertainment. They’ve become a powerful, new communications vertical.
When it comes to gaming vs social media, gamers look much more likely to engage with advertising in video games. Between 2023 and 2027, people are expected to increase their daily gaming time to two hours per day. In contrast, social media usage is projected to remain under two hours in its current form.
Video games also tap into younger audiences that are typically elusive and difficult to reach through other digital channels. In fact, GEEIQ’s 2023 report found that under 25s typically spend 180 minutes on Roblox, compared to 107 minutes on Tiktok.
By tapping into gaming, brands can drive meaningful and long-lasting engagement in an immersive style. That same effect cannot be reached through social media today, which offers a far more passive experience. In this way, virtual worlds become strategic platforms for brands, enabling them to connect with harder-to-reach audiences where they’re active.
2. The immersive nature of virtual worlds fosters brand affinity.
Investing in virtual experiences sows the seeds for long-term brand loyalty, allowing consumers to forge a more personal connection with the brand.
Based on a survey of Gen Z’s by The Business of Fashion, GEEIQ data suggests that the more experiences brands create in popular gaming platforms, the more favorably Gen Z views them.
Brands like Gucci, which has launched multiple virtual activations across multiple platforms, are held in higher regard than Adidas, Levi’s and Forever 21. Just last week, Gucci launched its fourth activation on South Korean-based platform, ZEPETO.
In contrast, brands with fewer virtual activations are less likely to be on Gen Z’s radar. Once again, gaming platforms enhance brand loyalty in ways traditional advertising is struggling to match.
Key Takeaways
The popular, immersive, and interactive nature of gaming means this new marketing channel will continue to grow in scale. Its benefits for brand loyalty and engagement are too worthwhile for brands to miss out on. Brands that get involved will connect with their audiences in more meaningful and fruitful ways than ever before.
In the words of Charles Hambro, CEO & Co-Founder of GEEIQ, ‘brands are clearly becoming more mature in this new communication vertical. Not only are they more consistent and confident, but the ways in which they’re activating continues to diversify.’
To learn how your brand can get ahead of the curve in the virtual world, read our latest report, The State of Virtual Brand Experiences Part II.
