Brands Are Tapping Gaming to Reach Millennials and Gen Z

In April, Walmart partnered up with video game platform Roblox, allowing players to purchase Walmart products through Walmart Discovered, an in-game e-commerce hub. But this was hardly the first--or the last--partnership between e-commerce and game platforms. With gaming on the rise, brands and e-commerce platforms are increasingly capitalizing on gaming’s immersive and captivating qualities to enrich the online shopping experience. 

The gaming industry is projected to hit $282.3 billion in revenue this year, with in-game advertising alone expected to rake in a little over $109 billion, according to Statista. Statista projects that the industry will hit $363.2 billion by 2027, with the number of gamers expected to reach 1,472 million the same year.  

Gaming is the second-largest media sector and by far the fastest-growing sector of the media industry, with the average player only recently passing 30 years, according to a BCG report. In the region, Saudi Arabia and the UAE have been quick to get ahead of the trend, with both governments investing heavily in the gaming sector to attract global business and boost local talents. The Esports World Cup, launched by Saudi Arabia last month, put Saudi Arabia on the map for esports and gaming while the Dubai Program for Gaming 2033 aims to make the emirate one of the top 10 cities in the global gaming industry.  

But gaming is more than just entertainment, with brands leveling up their strategies to capture the attention of the digitally native. Globally, gamers and esports enthusiasts have demonstrated themselves to be avid consumers of beauty and fashion, willing to invest in both virtual and real-world products.  

“Brands are increasingly interested in the gaming industry due to its vast and hyper-engaged audience,” says Matthew Pickering, CEO of Power League Gaming, a full-service gaming agency that connects brands and publishers with gaming audiences in MENA. He tells us that brands in the region can leverage games to build relationships with new audience segments, particularly in MENA, where gamers spend an average of 7.6 hours a week gaming.  

“E-commerce brands benefit significantly from engaging with gaming audiences by creating online ecosystems that offer both a place to play and a place to purchase,” adds Pickering.  

This includes everything from gamifying shopping, where brands include mini-games and challenges for players to earn discounts and virtual currency to spend in-store, to sponsoring e-sports teams, which are increasingly visible and often have large followings.  

“By developing experiences that not only collect extensive first-party data sets but also reward the newly acquired audience with vouchers or discount codes, e-commerce brands can achieve exceptional commercial outcomes,” Pickering says.  

How Brands are Leveraging Games  

In 2019, Fortnite star and pro gamer Ninja designed a signature shoe with the sportswear brand Adidas in what was publicized as a multi-year deal. That same year, Nike became the official apparel provider for League of Legends Pro League in China, gaming’s biggest market.  

As retailers and e-commerce brands leverage the large followings of gaming influencers and esports athletes, even luxury fashion brands like Louis Vuitton have gotten in on gaming, designing virtual apparel for avatars and working with developers at League of Legends developer Riot Games to design a physical capsule collection in 2019. In 2021, luxury fashion brand Balenciaga broke the internet when it launched its Fall 2021 Collection through the immersive online video game Afterworld: The Age of Tomorrow. The game invited players to explore an interactive, post-apocalyptic world, marking a pioneering move in fashion marketing. And in 2022, Burberry teamed up with Minecraft to create a capsule collection and in-game adventure for explorers.  

“Globally, brands have embraced gaming with significant sponsorships and campaigns,” Klaus Kajetski, CEO of yaLLa Esports, the UAE-based esports media company and tournament organizer, tells Inc. Arabia. Kajetski tells us that one of their events, YaLLa Compass, an S-tier gaming tournament in the UAE, caters primarily to families and allows brands to do on-ground activations.  

Similarly, Power League Gaming partnered up with Gamers8--the predecessor to the Esports World Cup--integrating the fried chicken franchise KFC Arabia as a strategic partner for over 60 days at their 2023 tournament.  

While integrating gaming into e-commerce holds promise, businesses must navigate potential challenges to ensure success. Excessive gamification can clutter the user experience, diverting attention from the primary goal of facilitating smooth transactions.   

Gaming features should be integrated thoughtfully, bearing in mind the platform’s infrastructure and security protocols. Brands and e-commerce providers should ensure a seamless and secure user experience, safeguarding sensitive customer data against potential vulnerabilities.  

“There's a vast potential for creating unique, impactful collaborations with brands that recognize the value of reaching untapped gaming audiences,” adds Kajetski.  

Pickering anticipates significant developments in areas like cloud gaming, Mixed Reality (MR), and Virtual Reality (VR), which he believes will further enhance the gaming experience. He also believes that rising interest in VR/AR can revolutionize brand integration by enabling more realistic and engaging environments. 

“AR and VR technologies are set to revolutionize gaming and brand integration by providing more immersive and interactive experiences. In gaming, AR and VR will enable more realistic and engaging environments, enhancing gameplay and user engagement. For brand integration, these technologies will allow for more innovative and experiential marketing campaigns, such as virtual try-ons for e-commerce and interactive product demonstrations,” says Pickering. 

This article appeared in the July/August issue of Inc. Arabia's digital magazine. To read the full magazine, click here.