Advergaming: How Brands Have Powered Up Through Video Games

The gaming industry, with annual revenues of £140.11 billion ($183.9 billion) and a staggering 3.4 billion people globally playing video games across age groups, represents a massive audience. Despite this, in-game advertising spending remains surprisingly low compared to other forms.

However, while advertisers and brands are getting more comfortable with the gaming world, collaboration within this space isn't a new phenomenon. When video games capture the attention of kids around the globe, it makes sense to leverage this medium to engage customers with commercials for your products, when allowed.

Stemming right back to the 80s, when major brands faced fewer rules to prevent directly targeting young people, one of the first video games to tie a brand into its gameplay was Avoid the Noid, spotlighting Domino’s long-running mascot.

The fast-food industry was a major player in the space, with games from McDonald's, Taco Bell, Cheetos, Pringles, KFC, Burger King, and Pepsi. But over the years, fashion houses, motor vehicles and even the American Army would get in on the fun.

Some of these games were successful as entertainment while building brand awareness and emotion through titles such as Burger King's Sneak King. Others, however, were deemed failures with their rushed production, glitchy gameplay and blatant over-advertising.

"I must confess I miss the branded video game cash-in of the 90s. Between 1990 and 1998, snack brands - who had had their advertising wings clipped by the US Children's Act of 1990 - leaped into the - nowhere near as regulated - world of video games," says advertising strategist and video gaming expert, James Whatley,

"Marketers, like liquid running through cracked glass, any time regulation seals up one crack, the water will rush to another opening. And in the 90s, that opening was video games. Relatively easy to re-skin, quick to publish and ultimately, consumers paying to consume your brand - what's not to love? Naturally, a few years later regulation caught up again but still. I quite miss being able to play with brand characters. Who wants to make me a Monster Munch game?" he adds.

The 21st Century Evolution

Advergaming has since evolved, leading to more sophisticated partnerships with leading gaming platforms. For instance, Wendy's collaborated with Fortnite to create Super Wendy’s World, resulting in a 119 per cent increase in brand mentions on social media and over 1.5 million minutes watched on Twitch, attracting a quarter of a million viewers.

Emily Baird, tech producer at Gravity Road, highlights advergames' transformative impact: “For many, games have always been an immersive escape. Advergames tap into this by blending native gameplay mechanics with subtle brand messaging, without making it feel too much like an ad.”

She points to successful examples such as Doritos Crash Course and Burger King’s Pocket Bike Racer/Sneak King, which were built from scratch and released on Xbox. Baird emphasises that these games prioritised gameplay and user experience and demonstrating how effective advergames could be when focused on player enjoyment.

"By meeting players within an existing game space, brands move closer to answering the question: 'How do we get people to play the game we've built?' These pioneering advergames have inspired and evolved into branded partnerships on platforms like Roblox, Decentraland, and Fortnite—continuing the approach of tapping into an existing player base while attracting new demographics."

Yet, despite the evident potential, in-game advertising remains a relatively small part of the overall marketing landscape. In the US, advertisers are forecast to spend £5.9 billion ($6.7 billion) on in-game ads this year, which amounts to just 3.7 per cent of total US digital ad spend. This disparity underscores a significant opportunity for growth. According to a survey from the IAB, nearly 90 per cent of advertisers agree that gaming is a brand-safe channel, indicating that concerns about brand safety are largely addressed.

Self-described serial gamer and advertising nerd, Steve Garside, divisional head of new business and marketing, for TMW admits to holding a lot of nostalgia for branded games, but sees it as "a risky business" today due to the spiralling costs of development. However, that doesn't mean it's not still worth brands considering.

"Gamers are an opinionated, but forgiving bunch. Quite simply: if it’s fun to play, contains regular rewards, and has a meaningful goal, you’re onto a winner," he explains before citing his favourite title - Doki Doki Panic developed in 1987 for the Japanese Fuji Television Network.

"The game featured multiple characters from TV shows that were set to be broadcast, and served as a great… well, platform… to help showcase the network’s new line up,' he explains.

Looking ahead, gaming continues to be a complex ecosystem with numerous touchpoints for reaching audiences. As game publishers work to build ad capabilities and demonstrate the effectiveness of in-game ads, the landscape of advergaming is poised for further evolution.

Let’s take a nostalgic look back at the wonderful, crazy, and wild days of advergaming over the past few decades.

M.C Kids - McDonald's (1992)

The 90s was an exciting time for gaming. And so, it doesn't seem so strange that McDonald’s would venture into the gaming world with games like Donald Land and MC Kids. The latter, developed by Virgin Games, introduced players to Mack and Mick, who embarked on a quest in McDonaldland to recover Ronald McDonald’s stolen magical bag. Its gameplay was similar to Nintendo's Super Mario 3 and it was available on multiple platforms, including the Game Boy, NES, Amiga, and Commodore 64.

Between the late 80s and mid 90s, McDonald's produced several advergames. When M.C. Kids was first released, many criticised it as merely a marketing ploy by the brand targeting children. This was evident from the widely visible iconic golden arches logo throughout the gameplay, although it did downplay the presence of menu items.

Cool Spot - 7Up (1993)

Cool Spot was a platform game released in 1993 by Virgin Games for various systems, most notably the Sega Mega Drive. The game's protagonist, Cool Spot, was an anthropomorphic mascot for the 7 Up soft drink brand. Cool Spot could jump, launch soda bubbles, and climb objects while players would rescue identical Cool Spots from cages by collecting "spots" throughout the gameplay. The game was also successful enough that it spawned a sequel in 1995, Spot Goes to Hollywood.

Interestingly, if you were a 90s kid in Europe playing this title, you'd be none the wiser that this was a commercial-based game. Due to a difference in mascots for the brand in the 80s, much of the 7UP branding was taken out of the PAL port of the game. Opening the US version, Cool Spot surfs up on a giant bottle of 7 Up, while across the pond, the bottle is left unbranded. Perhaps an unintended smart move as children in Europe went crazy for the character.

One Step Beyond (1993)

90s mascots were whacky and Colin Curly, the canine mascot of Quavers was no different. So it's no surprise that we find him in some curly situations during the 16-bit era.

It's perhaps a little bit different to those on this list, Push-Over is a puzzle-platform promoting Quavers, then owned by Smiths and now by Walkers.

The quirky storyline centers around Colin, who comically loses his packets of snacks down a massive ant hill. Players step into the tiny but mighty shoes of G.I. Ant, a determined soldier ant, tasked with navigating a series of clever puzzles to retrieve the lost Quavers.

Interestingly, in the Super Nintendo version, the game's branding takes a shift, replacing the quest for snacks with a more generic pursuit—recovering bundles of cash carelessly dropped by the mischievous Captain Rat.

A little over one year later, Quavers released another Colin capper in the form of 'One Step Beyond'.

Pepsiman - Pepsi (1999)

In 1999, game publisher KID released Pepsiman, an action video game for the PlayStation that became an advertgaming oddity. This Japan-exclusive title featured Pepsi's Japanese superhero mascot. Players navigated Pepsiman through various stages, dodging obstacles by running, dashing, and jumping, while Pepsiman automatically ran forward. The game was created on a tight budget, with cost-cutting measures leading to interstitial videos of a man drinking Pepsi, chosen for its affordability.

The game's reception was lukewarm, with critics noting its simplicity and drawing comparisons to Metro-Cross, Paperboy, and a simplified version of Crash Bandicoot. Despite its low price ($20) making it a bargain, Pepsiman failed financially. It stands out as a peculiar insert of advergaming, featuring a strange concept that didn't quite hit the target.

Taco Bell: Tasty Temple Challenge (2000)

In the early 2000s, Taco Bell made a notable foray into the world of computer games by offering a trio of titles as prizes in their kid’s meals. Among these was Taco Bell Tasty Temple Challenge, a quirky first-person shooter that cast players as Baja Bill, an adventurous character reminiscent of Indiana Jones. In this game, players navigated a perilous temple, using hot sauce to fend off cobras and scorpions, and consuming Taco Bell menu items like Chalupas to regain health.

Despite its age, the game has maintained a cult following and remains a popular choice among speed runners, showcasing the enduring appeal of this unconventional marketing effort.

America's Armyy - United States Army (2002)

Another outlier, America's Army was released in the early noughties, is a multiplayer game where players assume the role of U.S. Army soldiers, engaging in tactical, round-based combat at the squad level with three fire teams. The game combines authentic military training with strategic gameplay to provide a realistic combat experience. Initially, it wasn't a direct competitor to titles like Call of Duty or Battlefield, but it stood out for its mechanical authenticity and was offered for free as a recruiting and training tool. Even if it did cost the US government $32.8 million over 10 years.

The game enforced strict rules of engagement, penalising players for violations and simulating real combat scenarios. At the time, it was a key part of the Army’s efforts to connect with young Americans, representing about one-third of one per cent of the Army’s marketing budget. However, its teen rating sparked controversy as it promoted a career and lifestyle rather than just a product.

PocketBike Racer - Burger King (2003)

In 2006, Burger King launched an innovative marketing campaign by selling consumers three Xbox games—PocketBike Racer, Big Bumpin', and Sneak King—alongside their value meals. Initially sold in North America as budget titles alongside meals for $3.99 each, these games quickly became best-sellers on the Xbox that year.

PocketBike Racer stood out, offering players a fun, competitive racing experience featuring mini motorcycles. It allowed players to customise their bikes and characters and offered five unique tracks. Players could race alone, with up to four people in a split-screen mode, or compete with up to eight players online via Xbox Live.

This game, alongside the others, was key in driving Burger King's 40 per cent sales increase during the quarter. The campaign illustrated the power of advergaming, engaging customers in a way traditional ads weren't.

Yaris - Toyota (2007)

Unlike other entries in this list, Yaris is quite obviously not an FMCG brand. But the driving genre has long been a staple in the gaming world. Big motor brands have popped up in titles like Gran Turismo, F1 and Forza Horizon. So it made sense to create a racing car game around an one brand.

Kim McCullough, corporate manager for marketing communications of Toyota at the time had it right - People can easily skip ads.

"That's why we have to move beyond traditional advertising to do things that are really engaging for people," she explained to The New York Times.

Toyota published 'Yaris' in 2007 on the Xbox360, free to all via the Xbox Live service. It blends futuristic racing with combat, featuring three Yaris models each with a robotic "mechanosymbiont" gun. Players race through U-shaped tracks, dodging abstract obstacles and using the laser gun to clear their path.

Lego Worlds (2017)

Lego videos games have been around for almost three daces. The first, Lego Fun to Build, hitting the shelves in 1995 for the Sega Pico, a children's console. A few years later we were introduced to the PC game, Lego Island followed by Lego Stunt Rally for the Game Boy and various other games which didn't take off.

In 2005, things changed with the release of Lego Star Wars and began various mash-ups including the Marvel Universe, Indiana Jones, DC, The Lord of the Rings and Harry Potter.

Jump to 2017. The first Lego Movie was a hit, showcasing the range of IP Lego had worked with. Now it was time for Lego Worlds, a sandbox game (similar in nature to Minecraft) where players could unleash their imagination, and construct elaborate structures within a vibrant, ever-changing 3D world. With its Lego theme, the game invited players to explore and build in a procedurally generated universe.

Lego had done something of a similar nature following the film with Lego Dimensions (2015), a Lego-themed crossover action-adventure platformer game that featured characters and worlds from 30 different franchises including Batman and Doctor Who.

Before Lego World was released, the toy company teased its reveal on the back of the instructions of the LEGO City Square (60097) set.

B Bounce - Burberry (2019)

Jumping forward to the end of the 2010s and advergaming has moved on from console-based titles. The era of mobile gaming has pulled in many collaborations and Browser-based advergames from various fashion houses have made their way onto the scene.

In 2019, Burberry took a bold step into the world of gaming with the launch of its first-ever title, B Bounce. Like many other fashion brands, Burberry saw gaming's promotional potential. The game was available online and on a large screen at their Regent Street flagship store. Players guided a deer dressed in one of three new puffer jackets from Burberry's collection. Reaching 1500 meters in the game rewarded players with a real puffer jacket valued at over £1000.

This approach showcased Burberry’s latest designs and engaged consumers in a different way than the luxury fashion brand was used to. The success of B Bounce led to a follow-up game, Ratberry, which was released to celebrate the Chinese New Year.

Finger Lickin’ Fun - KFC (2019)

To round out this list is a dating sim entry. While the early 2000s were filled with obscure, homebrewed Flash titles on sites like Newgrounds, the genre has gained global popularity with the rise of mobile gaming. Nowadays, it's hard to play an ad-based mobile game or scroll through TikTok without encountering some variation of a dating sim popping up.

So that's why it might have been surprising when KFC decided to allow the world to date its very own Colonel Sanders in 2019.

The game was released on Steam and presented as a visual novel with anime-inspired artwork. Players found themselves engrossed in a multi-hour narrative where their choices influenced their romantic escapades with the iconic Colonel. The game's reception was notably positive, with 91 per cent of players recommending it. It seems KFC not only nailed the recipe for chicken but also for digital dating, proving that their innovation extends well beyond the kitchen.