Gamefam's Approach to Advertising on Gaming Platforms

The rise of online gaming has led to the emergence of platforms like Roblox, Minecraft, and Fortnite, which have become hubs for hosting various events, marketing activations, and interactive experiences to promote brands and movies. In March, Epic Games introduced the Unreal Editor for Fortnite, enabling users to design, develop, and publish games directly within Fortnite. This development has created new opportunities for brands to partner with developers and advertise on the platform, with companies like Gamefam at the forefront. Gamefam has collaborated with prominent brands such as Sega, Hot Wheels, and the NFL to create immersive experiences within Roblox, Minecraft, and Fortnite. The company's portfolio includes notable projects like Sonic Speed Simulator, Festival Tycoon, and Deathfun on Roblox, as well as Minecraft Central and OPBlocks on Minecraft. On Fortnite, Gamefam has developed maps like Epic Games: Legends Landing, Samsung: Mystic Mayhem, and Epic Games: Shortnitemares. According to Gamefam CEO Joe Ferencz, the company has faced limited competition due to its specialized business niche. Ferencz emphasizes that creating successful commercial content on platforms like Roblox and Fortnite requires a deep understanding of the brand's goals and the platform's unique characteristics. The pitching process typically involves working closely with brands to define their objectives and develop a tailored proposal. When asked about the challenges of creating content on these platforms, Ferencz highlights the importance of meeting the client's goals and understanding the value proposition for the target audience. He also notes that the advantage of creating game content for Roblox and Fortnite lies in the potential for exposure to multiple audiences. Ferencz draws parallels between these platforms and social media giants like TikTok, YouTube, and Instagram, suggesting that brands are shifting their budgets to gaming platforms as they become increasingly important for entertainment content. However, the company may face challenges in adapting to changes in in-game advertisements and regulations around advertising to children. Matthew Zanazzo, head of Gamefam's Fortnite team, acknowledges that such challenges are inherent to the business and require adaptability. The company's business model is also subject to the revenue share models of the platforms they operate on, but Ferencz downplays the challenges, citing the publicly available information on Roblox's revenue share and the company's ability to navigate these economics. As the gaming industry continues to evolve, Gamefam is well-positioned to capitalize on the growing trend of brands investing in gaming platforms.