In-game cosmetics remain a huge opportunity for brands

While the games market is facing growth challenges, in-game spending will remain a key pillar for revenue growth.

In-game spending generated revenues of $125.7 billion in 2023. In the coming years, that number will grow with a CAGR of +5% to hit $176.9 billion in 2030.

As we dive into in our recent report on in-game spending, the cosmetic portion of in-game spending (which doesn't grant players an advantage in the game) accounts for the most spending here. It’s also on track to grow its share for the rest of the decade.

The savviest brands are already leveraging these opportunities to achieve their branding goals. And clearly, it’s not too late for more brands to get involved.

Ready to dive deeper? Download the key takeaways from the report for free.

Self-expression is now a major aspect of gaming

Games are the new town square, especially for younger consumers. It’s where they socialise, hang out, and express themselves.

Brands can live at the centre of this experience, as shown by the countless successful in-game activations in Fortnite, encompassing film, music, TV, fashion, and automotive.

While progressing and performing well are paramount, self-expression is an equally important part of the fun for many consumers, as shown by MIDiA’s Q1 Consumer Research, which powers the in-game spending report:

• 45% of in-game-item buyers buy them to gain an advantage
• 44% buy to progress and keep up with other players
• 42% buy to customise their appearance for themselves
• 35% buy to customise their appearance for others

That last point is important, as the fear of missing out and social trends in the real world can be applied to games like Fortnite.

Spoilers from the full report: these results differ vastly for younger players, where there are even more opportunities. Get the key takeaways for free here.

Even buying to progress can encompass self-expression, as battle pass rewards in games often come in the form of cosmetic rewards.

And activations can take the form of expressing style, brand loyalty, and fandom alike.

The above image – showing cosmetics of influencer MrBeast, Goku from Dragon Ball Z, musician Marashmello, and Lara Croft from Tomb Raider –  shows just how diverse Fortnite is in terms of brand collaborations.

What kind of in-game brand activations do consumers like most?

Our in-game spending report shows that almost a third of in-game item buyers spend most in-game money on third-party branded items:

• TV and movies are the most popular items, bought by 35% of in-game item buyers. Popular activations include Marvel and Star Wars in Fortnite, horror franchise collabs in Dead by Daylight, and Fast & Furious in Forza
• Fashion is second, with 34%. Notable activations include Vans in Roblox, Burberry in Minecraft, and Louis Vuitton in League of Legends
• Music is not far behind, with 33%. Notable activations include Snoop Dogg and Nikki Minaj in Call of Duty, Billie Eilish and Eminem in Fortnite, and Post Malone in WWE

Naturally, the best in-game activations will:

• Understand the game well: Gamers can also spot bandwagon jumpers a mile off, so adding a cosmetic that complements the game experience, its in-jokes (meta), and its community works best
• Tie into your audience: A one-size-fits-all approach makes nobody happy. Trying to appeal to all the players of a given game won’t happen, so just like in your usual marketing, try to resonate with your target audience within that game
• Have authenticity: It is easy for gamers to spot inauthentic activations, so partnering with consultants and research firms that understand fandom is the way to go.

Luckily, MIDiA is one of those companies. Download the key takeaways from our in-game spending report for more details on the data and insights discussed in this article.

Or reach out to see how we can help you reach your cross-entertainment target audience. 

Of course, in-game spending is just one opportunity in the games industry. Stay tuned for our upcoming report and blogpost on the ongoing opportunity for premium single-player games.