Scroll to explore
ClickTap to break through
ClickTap to be fearless

Growth Trends 2023: The metaverse doesn’t exist, but gaming is the real deal

By Rory Davis, Managing Partner

The metaverse does not exist.

The term seems to be a near constant in headlines of the trade press, but just because it’s the current buzzword of choice and suits certain commercial narratives, doesn’t mean that it actually exists. A recent policy briefing on the metaverse from the University of Cambridge summarises this nicely by stating that Mark Zuckerberg’s metaverse presentation, as part of Facebook’s rebranding in 2021, changed the metaverse narrative, encouraging commentators to incorrectly describe existing platforms and applications as manifestations of the metaverse. They go on to clarify why this is not the metaverse, stating “such applications are neither persistent (because they reset when users quit them), nor interoperable (because they are siloed and it is not possible to move seamlessly between them)”.

So, despite every headline telling marketers that now is the time to plan for the metaverse, we’re not quite there yet. And in most cases what we really mean when we use the term is gaming, which has been doing most of those ‘metaverse’ type things for years. Second Life, a game where you create an online avatar in a virtual world, spend real money on virtual goods and meet up with other users in cyberspace, came out in 2003, before the word metaverse even existed. Interestingly, Second Life still has a daily active user base 20,000 times bigger than Decentraland, one of the so-called metaverse platforms you’ll read about in headlines (they have less than 1000 globally!).

The reality of the metaverse in its true meaning is some years away but gaming, with its long history of creating immersive experiences for users, is carving out an ever-growing sphere of influence on the cultural zeitgeist.

  • Gigs in gaming are second nature. Travis Scott’s mind-blowing concert in Fortnite was the most attended music gig in history, with 27.7m attendees. But what seemed like a crazy one off has now become commonplace, with hundreds of examples like Justin Bieber in Free Fire, Selena Gomez in Animal Crossing, Snoop Dogg in Sandbox and even Club Matryoshka in Minecraft – a virtual night club playing the latest dance music to thousands of people each week.
  • The fashion industry is gaming native. Burberry used gaming streaming service Twitch to unveil their Spring/Summer catwalk, Balenciaga launched their Autumn/Winter collection in Afterworld: The Age of Tomorrow and Louis Vuitton created an exclusive range of character skins in League of Legends to promote their new line. Gucci, Moschino, Lacoste, Prada, Tommy Hilfiger and Ralph Lauren are all in on the action with their own collaborations – even last year’s fashion awards were hosted in Roblox.
  • Gaming’s influence is broader than you think. A recent Statista report shows that the UK now boasts 46.7 million gamers. While it showed that there was a slight male skew, it also highlighted that gaming penetration among females has now reached 56% (vs 63% male). They’re a lot older than you think too – a recent Deloitte Insights study revealed that in the UK, 95% of Millennials and Gen Z spend over 12 hours gaming per week, whilst 80% of Generation X spend over nine hours, and 46% of Boomers and Matures spend more than seven hours. It’s continuing to shift in that direction too, with Ofcom reporting that there has been a 25% increase in UK gamers aged 55-64 in the last two years.

It’s not just the brands that sit within those big cultural pillars like music or high-end fashion that are turning to gaming to engage audiences. A broad range of brands have started to notice that gaming provides the opportunity to connect, converse and even sample products with their consumers. Nike built its own world, Nikeland, in Roblox, which has been visited by over 21 million users. It offers a fully immersive interaction with the brand, with the opportunity to play games, engage with other visitors and explore and buy products from the digital showroom. Even brands like Hellmann’s are in on the action, creating its own island in Animal Crossing where users could donate their virtual food waste to provide a free real-world meal for those most in need. Partnering with charity FareShare, Hellmann’s was able to supply 25,000 free meals.

And while these bigger, more bespoke activations might not be right for every brand, the broader landscape of gaming advertising, down to the most basic in-game display and video formats, is something that every marketer should be considering. Earlier this year Huawei ran a mobile gaming test via Xaxis, replacing a portion of their display budget with virtual billboards and banners in popular mobile games, with a focus on brand awareness and recall. Through independent research company Lumen’s eye tracking technology, they were able to see a 3.6x increase in average view time of ads versus other non-gaming display formats. Crucially, this was backed up by a 128% uplift in ad recall versus their standard display. Cases like these set a strong precedent for brands to integrate even basic gaming formats into their existing video and display plans.

A recent study by Tapjoy revealed that 72% of UK gamers willingly engage with rewarded in-game ads.

The growth opportunity:

At a time where media consumption is fragmenting, gaming offers a touchpoint that reaches multiple audience segments at scale. Recent research by NordVPN suggested that Brits are gaming for an average of 4 hours 36 minutes a week, 68.9% longer than any other country. It’s also a unique touchpoint in that audiences are truly receptive to advertising. A recent study by Tapjoy revealed that 72% of UK gamers willingly engage with rewarded in-game ads,  whilst Anzu research shows that 66% of UK gamers say they would actually welcome more advertising in their games.

So ignore the headlines that tell you “Now is the time to plan for the Metaverse” because it doesn’t exist yet. But what is here right now, is a rich gaming landscape that offers truly immersive brand experiences to a broad and ever-growing audience who love to engage. And while the bigger brand activations might not be the right fit for every brand, marketers should be considering how they show up in the diverse gaming ecosystem that is becoming an ever-growing part of the media landscape and UK culture.

Three things to do today:

Think audience first.

Who you’re trying to reach will determine both how and where you show up across the gaming landscape. Ideally, you’ll be creating something that will enhance their gaming experience in an authentic way. What are you asking of them and what are you giving in return?

Start small.

If you’re completely new to gaming, take your current basic display and online video plans and think about the opportunities to divert some of this budget as a small test for in-game adverts. With the right level of investment, most partners will offer brand studies to prove the positive impact this can have on your media.

Then go BIG.

For the bolder brands, the possibilities are truly endless. Gaming partners are constantly looking for new and exciting ways to help brands come to life and there is always room to push the boundaries. What’s the most interesting aspect of your brand or product? How could you bring that to life virtually in a way that would make users want to engage with it? The sky is the limit.

Fill in your details below to download a full copy of the 2023 Growth Trends report.


Next up