To connect with future shoppers, brands should focus more on video games rather than solely on TikTok, as this is where their target audience is spending time.
According to a recent analysis by UBS on Generation Alpha, those born between 2010 and 2024, gaming enthusiasts in this group allocate their time differently compared to older generations. While older gamers typically spend about two additional hours weekly on social media than on games, Gen Alpha gamers engage with games and social media in roughly equal measure.
This shift may be attributed to the fact that games have become social spaces for kids, especially in light of proposed social media restrictions for minors, like the one implemented in Australia.
As gaming becomes a central hub for social interaction, it presents a significant opportunity for brands to build awareness among this emerging demographic, whose Millennial parents are already influential consumers. Over the next 25 years, an estimated $83.5 trillion in wealth will transition to younger generations.
UBS analysts noted that nearly 60% of Gen Alpha have discovered new brands through games and are more inclined to purchase from brands featured within them.
While video games have been around for generations, the way kids today engage with them is unique. Gen Alpha shows the highest level of gaming engagement, with many interacting with gaming content beyond just playing, such as watching live streams.
Games allow brands to connect with their audiences in innovative ways. For instance, a contest by Fenty Beauty on Roblox invited players to create lip glosses, with the top design becoming a limited-edition product sold at Sephora.
This interactive approach may leave a more lasting impression on Gen Alpha compared to traditional social media marketing tactics, which often include memes or short videos.
However, the long-term effectiveness of in-game brand initiatives remains uncertain, as children’s preferences can change significantly as they grow. Brands also face limitations in how they can engage within gaming environments, as not every platform is as welcoming to brands as Roblox or Fortnite, where brands can create unique experiences.
Creating an engaging game that keeps players returning can be challenging. When The Business of Fashion tested beauty games in Roblox in late 2023, feedback was mixed.
Yet, success is achievable. Natalie, a 9-year-old tester, continues to enjoy E.l.f.’s game on Roblox, which simplifies player progression rather than requiring tedious grinding.
Recently, she became aware of Skechers after encountering a Roblox promotion that offered a virtual pair of sneakers for completing a scavenger hunt. Despite her initial lack of brand awareness, the shoes appealed to her, especially as they were free with her Robux, Roblox’s virtual currency. Now, she owns a digital pair of Skechers and recognizes the brand, even if she isn’t yet asking for physical shoes.
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