Is in-game advertising the future of fashion?
Luxury fashion in the metaverse
Date
October 2, 2024
Author
Sophie J. Barnes
Fashion and gaming might seem like an unlikely match, but when you dig a little deeper, it becomes clear that there’s significant overlap between the two. From the pursuit of individuality and self-expression to the inherent creativity unique to each, there are plenty of reasons why these industries are merging now more than ever. Luxury fashion houses are turning to the metaverse as the lines between real and digital spaces continue to blur. This begs the question: is digital fashion the future? And how can your brand adapt? Let’s dive in.
source: Gucci
In much the same way that fashion is seen as an extension of our identity in the real world, character customisation provides an opportunity for self-expression in the virtual world. From the hugely popular online game platform and game creation system Roblox to Epic Games-owned Fortnite and sandbox favourite Minecraft, the personalisation of digital avatars remains an important feature across the board. And it makes sense when you consider that, according to a report by Roblox, 56% of Gen Z say that dressing up their avatar is more important than their physical style, and 84% say their fashion is inspired by the way they dress in a game. There’s an evident need for fashion as a tool for self-expression and creative exploration in the virtual world, and fashion houses are just beginning to tap into it.
Creative storytelling is at the heart of both gaming and fashion. Gamers enter the virtual world to tell stories and build their own universes in much the same way that designers use the power of narrative to craft collections that cater to the imagination. There’s a synergy between the two; a space for convergence and play. It seems only natural, then, that there’s an overlap between gaming and luxury fashion too, with 47% of US gamers claiming to purchase Gucci, 43% Dior, and 29% Chanel (Anzu).
The facts
When we consider that there are 3.2 billion gamers worldwide (Academy of Animated Art), it’s easy to see the potential for branding opportunities, yet harder to understand why this market remains largely untapped. In 2022, eMarketer reported that the U.S. had invested US$56.9 billion in social ads, US$67.2 billion in video ads, and US$68.4 billion in TV ads, yet only US$8.6 billion in video game advertising. Meanwhile, research shows that in recent years, fashion enthusiasts have developed a clear interest in gaming. A study of US gamers by Anzu, an in-game advertising agency, found that 76% followed fashion brands and influencers, and 66% were consumers of luxury branded products. In a study by The Interactive Advertising Bureau (IAB), half of agency respondents said brands are more comfortable with traditional media such as television advertising than newer avenues like in-game advertising. Brands offered another perspective, with one-third stating that agencies weren’t pushing them to invest in in-game advertising (Adexchanger).
Case studies
A handful of notable frontrunners have already taken the plunge and invested in in-game advertising and/or digital fashion collections, including Gucci, Nike, Balenciaga, MISBHV, Burberry, Louis Vuitton, Coach, [A target='_self' link='https://dd.agency/projects/tommy-hilfiger']Tommy Hilfiger[/A], Prada, and French conglomerate LVMH. By collaborating with virtual environments that align with their own narratives and collection stories, a powerful opportunity for brand exposure presents itself. Take the example of Polish fashion house MISBHV, who crafted a digital collection of streetwear for the action-adventure game Grand Theft Auto V. The virtual fashion line included hoodies and tees worn by the in-game German DJ group Keinemusik, perfectly encapsulating MISBHV’s own brand story and gaining exposure with an aligned and highly receptive audience. The collection extended itself to the real world too, with MISBHV working closely with Keinemusik to craft a physical collection that rang true to all parties involved.
Gucci x Roblox
In-game brand awareness for fashion houses can also extend beyond digital fashion collections. Roblox has been a strong pioneer in this area by collaborating with Gucci to create Gucci Town. In the words of Gucci itself, Gucci Town is ‘a digital destination on Roblox dedicated to those seeking the unexpected. It is a place to discover more about the House and its heritage, as well as to express one’s own individuality and connect with like-minded individuals from all over the world.’ The virtual destination offers players an interactive space to connect with others, explore, play, and discover the Gucci universe. Players are invited to explore a series of spaces including Mini Game Heights, Vault Plaza, Creative Corner, Craftsmanship Court, Selfie Way, Power-up Place, and the Gucci Shop – a boutique where visitors can purchase digital Gucci items to collect or to outfit their Roblox avatars.
Balenciaga x Epic Games
Epic Games also got in on the action when they announced the Fortnite x Balenciaga collaboration, which introduced the Balenciaga Fit Set into the virtual gaming world. Its accompanying digital fashion collection was inspired by authentic archival Balenciaga designs that saw Fortnite’s beloved characters decked out in iconic digital fashion looks: Doggo in a Fortnite x Balenciaga hoodie, Ramirez in a chic silver blouse and oversized sunglasses, Knight in a two-piece sports set, and Banshee modelling a full-body zebra-print suit in radiant gold. The digital fashion collection was accompanied by physical apparel available online and at select Balenciaga stores. Balenciaga’s virtual experience also included a retail space inspired by the brand’s brick-and-mortar stores that players could visit within Fortnite’s hub.
Nike x Fortnite
More recently, Fortnite collaborated with Nike on the creation of Airphoria, a virtual island that transported players to a visually immersive Air Max-themed universe. Players could interact with Nike in new ways: those who dropped into Airphoria embarked on the ultimate Nike sneaker hunt to recover lost Air Max Grails and earn an in-game reward in the process – the Air Max 1 '86 Back Bling. Airphoria items, such as the Airie and Maxxed Out Max Outfits, were available in the Fortnite Item Shop, and a real-life limited Airphoria-inspired collection was dropped on Nike.com, directly linking the virtual world of Airphoria in Fortnite with Air Max. Ron Faris, VP/GM of Nike Virtual Studios, stated that the collaboration grew from a desire to find ‘authentic ways to deepen our connection with fans, expand access points to Nike across our digital ecosystem, and inspire a love of sport and play.’
source: Nike Airphoria in Fortnite
What are the benefits of in-game advertising?
In-game advertising provides fashion brands with a unique opportunity to broaden their reach and foster brand loyalty among a highly engaged audience. Not only do these ads boost visibility, but they also offer valuable insights through a range of marketing metrics that can be tracked in real time. Key indicators such as brand exposure, enhanced by constant visibility within games, play a crucial role in improving brand recall. Metrics like impressions, clicks, and interactions give brands immediate feedback on how their campaigns are performing, while conversion rates, including website visits and purchases, help measure the overall impact of in-game ads.
According to GWI, 53% of U.S. gamers are likely to interact with in-game ads, whether by clicking, purchasing, or engaging with the brand on social media, highlighting the potential for driving meaningful consumer engagement. Additionally, in-game audience demographics and behavioural data can help brands refine their targeting strategies, offering deeper insights into gamer preferences and habits. Ultimately, these metrics empower fashion brands to not only enhance their visibility and loyalty among gamers but also track success based on key performance indicators.
What’s next for digital fashion?
The convergence of fashion and gaming isn’t slowing down any time soon. As the boundaries between virtual and physical realities blur, the opportunities for fashion brands are expanding rapidly. And despite some initial hesitation, brands are recognising the immense potential of this evolving industry. While it’s still a new concept for many, the success of other fashion houses’ virtual campaigns is inspiring others to invest in this burgeoning realm of growth, creativity, and innovation. While a slow transition, the expectation is that game advancements will further simplify advertising across gaming ecosystems and eventually lead to in-game advertising as a popular advertising avenue.
