The Business of In-Game Advertising: Gamefam's Approach to Creating Engaging Experiences

The rise of online gaming has transformed certain titles into full-fledged platforms, such as Roblox, Minecraft, and Fortnite, which now host various events, activations, and interactive experiences designed to promote brands and movies. In March, Epic Games introduced the Unreal Editor for Fortnite, enabling users to design, develop, and publish games and experiences directly within Fortnite. This move has created new opportunities for brands to collaborate with developers and advertise on the platform, with Gamefam being one such company. GamesIndustry.biz spoke with Gamefam's CEO, Joe Ferencz, and Matthew Zanazzo, the head of the company's Fortnite team, to discuss the process of building branded experiences within popular games. Since its founding in 2019, Gamefam has worked with prominent companies like Sega, Hot Wheels, and the NFL, developing Roblox concerts, Minecraft games, and Fortnite creative mode maps. The studio's portfolio includes notable titles like Sonic Speed Simulator, Festival Tycoon, and Deathfun on Roblox, as well as Minecraft Central and OPBlocks on Minecraft. Via Fortnite, Gamefam has developed maps such as Epic Games: Legends Landing, Samsung: Mystic Mayhem, and Epic Games: Shortnitemares. Gamefam's Bakugan Roblox integration achieved 1.5 billion global engagements, while Sonic Speed Simulator garnered over 500 million play sessions, making it the largest branded game release on Roblox. According to Ferencz, the company has faced limited competition due to its specialized business niche. Ferencz notes that few brand campaigns can stand on their own as commercial game content in platforms like Fortnite and Roblox, which rely on massive organic usage to drive revenue. He explains that the pitching process for creating a game on a platform is relatively straightforward, with brands typically approaching Gamefam through referrals or introductions. The company then works with the brand to define their goals and develops a qualitative and quantitative proposal to achieve those goals. When asked about the unique challenges of creating content on Roblox and Fortnite, Ferencz emphasizes the importance of understanding the brand's value proposition and building reward systems to engage players. He adds that the advantage of creating game content for these platforms is the potential for exposure to multiple audiences. Ferencz also notes that gaming is becoming the predominant form of entertainment for young consumers, and as a result, more media dollars are likely to flow into gaming. One potential challenge for Gamefam's business model is the possibility of changes to in-game advertisements, which may require the company to update its experiences to comply with new regulations. However, Zanazzo views this as a normal part of doing business, emphasizing the importance of adaptability. Ferencz downplays the challenges related to revenue sharing on Roblox, noting that the company has built its business on those economics and operates differently than a traditional mobile publisher. He also highlights Fortnite's supportive approach to developers working with brands, citing the platform's recent introduction of monetization options as a positive development.