The Evolving Role of Brands in the World of Gaming

The relationship between video games and brands has been a long-standing one, with early examples such as Coca-Cola's Pepsi Invaders and Johnson & Johnson's Tooth Protectors showcasing the integration of products and brands within the context of primitive visuals and limited technological capabilities. As the industry evolved, more thoughtfully integrated product placements emerged, such as the inclusion of KFC restaurants and Levi's stores in versions of Sega's Crazy Taxi. The rise of Flash games, live billboards, and ads as a means to monetize mobile games further solidified the presence of brands in the gaming landscape. However, with the COVID-19 pandemic, the industry witnessed a significant shift in the relationship between games, brands, and consumers. According to Greg Carroll, vice president of global revenue at Activision Blizzard Media, 'A lot has shifted recently in terms of the relationship between games, brands, and consumers, and brands' motivations with ads. COVID was a catalyst to people understanding how important and meaningful this entertainment platform is.' The pandemic highlighted the importance of gaming as a stimulant and a point of socialization, leading to increased investment in game companies and IP, as well as growing interest from consumers. As a result, brands are now recognizing the value of establishing a presence in games that feels authentic, informed, and relevant. Alex Luff, CMO and commercial director at Diva Agency, notes that 'Games, alongside other forms of interactive and engagement media, now find themselves at the heart of the experiences and places that an increasingly diverse and broad community of people spend time, socialize, and communicate in.' The challenge for brands is to navigate this new landscape without overstepping a fine line, requiring a deep understanding of the gaming audience and the medium itself. Carroll suggests that 'The opportunity for advertisers here has shifted, and that will continue at pace. Today it's not necessarily about simply piggybacking on the game's popularity. Instead, you have to understand and share and reward people's passion, and be by their side celebrating the games they love.' As the industry continues to evolve, it is likely that we will see more movement in terms of agencies and outfits conceived to specifically foster the new advertising opportunities in games, as well as increased hires of gaming talent from outside the industry. Ultimately, the key to success lies in understanding the need to add value to the gaming experience, rather than getting in its way.