The video game industry is quietly taking over the media landscape. In the past, many have thought of it as a niche part of the entertainment industry but today it's larger than the movie and music industries combined and it's still growing. Even though it doesn't get the attention of either of the aforementioned industries there are over 2 billion gamers worldwide which accounts for 26% of the population. Additionally, the market demographics are expanding- people are playing games earlier and later in life and the gender split is almost equal. Amongst Gen-Z in particular (a segment often targeted by marketers) free to play, platform-agnostic games (such as Fortnite) have grown so much that media giants such as Netflix see them as their greatest competition for time spent on media. The constant touchpoints of many of these games (pc, mobile, tablets, and console) also give them almost unlimited potential for marketers who want to be top of mind.
While advertising has successfully permeated most types of media, there has been some trouble launching successful in-game video game advertising. While ads are tolerated in free-to-play mobile games, they result in backlash for premium paid games such as NBA 2K19 which received backlash for adding unskippable ads.
As advertisers have started experimenting with new platforms- several companies have found success with Twitch- the live streaming platform for Gamers. Many of these campaigns have looked more like traditional influencer campaigns- with companies sponsoring the videos of Twitch influencers in order to reach Gen-Z audiences. Yet, these videos suffer from the same issues as a traditional influencer campaign, they don't allow for the brands to expand on brand personalities or capitalize on organic social media trends or movements as quickly.
There has been some recent success that shows how brands could use Fortnite to gain attention and amass brand love from players. One example is Wendy's, who launched the "Keep Fortnite Fresh" campaign in 2019 effectively blurring advertising and entertainment by having Wendy's Avatar play Fortnite on Twitch. Using Fortnite's newly launched "Food Fight" game they amassed over 1.5 million minutes watched of the avatar destroying burger meat in freezers. Other brands have relied on personalized skins or customized and crossover events to gain audience attention. Disney in particular has relied on both with Avenger skins and weapons being available for purchase as well as a Fortnite x Avengers crossover event where players could collect the infinity stones and become Thanos. Other packaged good brands have sponsored Fortnite themed content- with Dollar Shave Club, Honey, and Casper all experiencing early success with this model.
Streaming platforms for gamers and games such as Fortnite have the ability to change advertising. The question will be is will the structure look more like traditional advertising platforms (such as television or radio) or will the technology, data and targeting abilities of internet-enabled gaming create a more digital advertising like environment. As the space opens up it will be interesting to see exactly how it grows and changes.
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