With global video game revenue expected to hit $365 billion by the end of 2023, and users expected to reach 3 billion by 2027, there is an incredible opportunity for brands to reach a massive untapped audience.
And it turns out, younger gamers are increasingly persuasive when it comes to what their parents buy.
Research conducted by SuperAwesome, a consultancy that is part of Epic Games, reveals that Gen Z and Gen Alpha now have “significant influence” when it comes to purchasing decisions.
Brands should pay attention to Gen Alpha
SuperAwesome discovered that 83% of young people in the U.S. and U.K. either had sole or joint purchase decision-making power with their parents, with spend doubling as they enter their teenage years. Just under three-quarters (74%) of parents said their kids influence what they buy.
It was also found that 1 in 4 parents in the U.S. strongly agreed with the statement: “I ask for my child’s thoughts and opinions when buying something for the whole family.” This statement was true for 1 in 5 U.K. parents.
With 90% of kids and teens across the U.S. and U.K. identifying as gamers and more watching game-related content, according to the survey, it is a sector that brands are now aware must be explored. Some of the world’s largest brands, such as Nike, Walmart and Amazon, are already years ahead of the trend.
“Gaming has given brands the opportunity to ‘fish where the fishes are,'” said Debbie Ellison, global chief digital officer for VMLY&R Commerce. “It has become a new route to consumers and is where brands and retailers will find their future shoppers.”
“Over half of young people talk to their friends whilst they play video games, so brands and retailers shouldn’t ignore the social commerce opportunity this new route-to-consumer offers,” she said. “Take advantage of the growth of microtransactions in this channel to connect groups of gamers with digitally-branded experiences and products that can bring teams of gamers together.”
The survey, conducted by MarketCast across the U.S., U.K., France and Germany, included the responses of 1,600 people between the ages of 6-19 and 1,200 parents from the U.S. and U.K. It also found that 3 in 5 people between in the U.S. ages of 6-19 said shopping was one of their favorite past times.
Eighty percent of teens surveyed said they like branded clothes that appear in-game and that purchase intent for those same clothes IRL increased by 12%.
They want cool, new and fun. Be prepared to deliver or don’t play the game.
Debbie Ellison, chief digital officer, VMLY&R Commerce
According to Ofcom’s Online Nation Report 2022, more than a third (39%) of U.K. teens over the age of 16 and more than half (56%) of kids between 3-15 play online games.
“Gaming has, of course, never been more appealing to brands,” explained James Whatley, chief strategy officer for gaming creative agency Diva. “It is larger, more culturally acceptable as an entertainment past-time and, ultimately, the roads-in are much more accessible for brands. Shorter lead times, bigger/better creative—everyone is taking notice, not just retailers.”
The brand experience of gaming
Roblox is one of the platforms brands have turned to in recent years to claim their part of the growing gaming experience, gaining huge engagement numbers in response. Gucci Town, for example, which allows players to “explore a boutique of limited-edition virtual items from Gucci” and learn about the heritage of the brand and connect with its global community, has received almost 41 million visits since its launch in fall 2021.
Recently, that featured a guest appearance from England and Manchester City FC soccer player and brand ambassador Jack Grealish. That event saw Grealish host a mini-game of football where players could win rewards before visiting the Gucci Store to purchase Jack’s iconic hairstyle for their avatar in the game.
Nikeland has received more than 31.5 million visits since autumn 2021, allowing players to style their avatars in Nike gear and play sports such as basketball and soccer in their stadiums or develop their own mini-games. Walmart Land, with 15.6 million visits since launch last year, allows players to buy food for their avatars or sing on their soundstage alongside several other virtual experiences.
“From a creative standpoint, we would always try to look through the lens of player-first centrality, as in, what are we doing that drives enough value for the person who has picked up their controller, keyboard or mobile, that would make them stop doing what they’re doing in the game world and lean into a brand experience instead,” explains Whatley about why gaming should not lead with a sales-first approach.
Another award-winning initiative from fast food chain Wendy’s took its “Fresh, Never Frozen” platform into Fortnite. The 2019 activation encouraged players to become brand mascot Wendy and then smash up freezers. It grew its gaming engagement through streaming channel Twitch.
Wendy’s also appears in Animal Crossing: New Horizons, where the brand created its own island. On it, players visit and hang out while catching fresh fish or paint using the classic Frosty frozen dessert.
“It drives loyalty and ultimately, (in-store purchases),” said Whatley.
Wendy’s overtook fast-food rival Burger King as the second largest in the U.S. by sales in 2021. However, its $10 billion in 2020 sales is a quarter that of McDonald’s, which launched its own virtual world within its app.
Mobile gaming continues to grow
According to the SuperAwesome survey, in-game experiences that drove acquisitions were found to allow children to be creative, allow them to choose items for themselves and got them excited as a consequence. As a result, 35% of young audiences in the U.S. and 28% in the U.K. prefer in-game items over physical ones.
“Be authentic to the channel,” advised Ellison, reminding advertisers that 42% of Gen Z also used ad blockers and wouldn’t hesitate to leave a game if they found the brand to be intrusive of their experience.
“Find ways to add value, whether that be entertainment, in-game branded experiences that makes them look cool or even connected digital to physical experiences. They want cool, new and fun. Be prepared to deliver or don’t play the game,” she added.
