Brands are betting big on virtual worlds – here’s why it’s working

In the not-so-distant past, video games were viewed as a distraction, a way for people—mostly kids—to while away their free time.

Fast forward to today, and video games and virtual worlds like Fortnite, Roblox, and the broader "metaverse" are becoming some of the most powerful marketing platforms for brands looking to reach new, younger audiences.

It’s not just about product placement or banner ads anymore—brands are creating entire virtual experiences. The question is, why are they doing it, and what’s in it for them?

The Metaverse as a Playground for Brands

For companies like Domino's and Peloton, the answer lies in The Glitch, a custom-branded world inside Fortnite. Instead of the jarring in-game advertisements that can disrupt gameplay, The Glitch offers something far more seamless—a network of playable worlds crafted specifically to fit a brand’s identity.

For example, Domino’s set up a fully immersive pizzeria where players can hold pizza parties that actually benefit their game characters, adding value to the in-game experience.

Meanwhile, Peloton’s presence in the same space ties in perfectly with its brand identity, giving players a unique way to engage with fitness in a virtual world. For these brands, the goal isn’t just to plaster their logo on the screen; it’s to create something interactive and memorable. By aligning themselves with the player experience, they turn advertising into something fun and engaging, not just something that interrupts.

And it’s not just the traditional food and fitness sectors jumping on board. Coca-Cola’s Vitaminwater is doing the same with a twist. In their "Zero Holding Back Showdown", Fortnite players get to dive into an island built entirely around the brand’s zero-sugar product lineup.

With 50 rounds of gameplay based on different flavours, Vitaminwater is offering an immersive, interactive event that feels less like an ad and more like a branded festival.

Why Are Brands Doing This?

Simply put, traditional advertising is starting to feel stale. Younger consumers, particularly Gen Z and Gen Alpha, are spending more time in virtual worlds than ever before. A banner ad or a TV spot doesn’t grab their attention the way it used to. But an interactive experience in Fortnite? That’s something they’re excited about.

Virtual worlds give brands a chance to be a part of their audience's daily lives in a way that feels organic. Instead of being an interruption, they become a part of the story. In-game, the brand is not just selling a product but contributing to the player's journey—restoring health, creating challenges, or helping them win a fashion showdown.

This kind of engagement doesn’t just happen in a vacuum, though. Influencer marketing is a big piece of the puzzle. Popular Twitch streamers, for example, are using their platforms to drive their audience towards these branded worlds. By tapping into existing communities and influencers, brands can ensure that their campaigns aren’t just seen but are actively engaged with.

The Future of Branded Virtual Experiences

As the popularity of zero-sugar beverages grows, campaigns like Vitaminwater’s showdown are likely to become more common. And with platforms like Roblox rolling out new ways for players to buy goods directly from the game, virtual commerce is becoming a reality.

For brands, this opens a wealth of opportunities. As Kate Trumbull, Domino's senior VP, pointed out, pizza and gaming go hand in hand, and the spending power of Gen Z is only increasing. It’s not hard to see why brands are eager to put down virtual root.

It’s clear that virtual worlds are becoming the next big thing in marketing. But the real key to success is making sure these branded experiences are fun, relevant, and most importantly, add value to the virtual lives of their consumers. After all, in the metaverse, no one wants a boring ad. They want an adventure.

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