Phygital Marketing in Roblox

According to Newzoo Global Gamer Study 2023, collaborations between brands and gaming platforms wield substantial influence over purchasing behaviors:

– 57% of Gen Z and 59% of Gen Alpha report
discovering new brands while immersed in gaming.
– 53% of Gen Z and 57% of Gen Alpha report being likely to buy from a brand featured in a game.

These impressive statistics have led numerous brands to adopt gaming platforms as a new Marketing channel to compete for the attention of young audiences. Within this competition, Roblox has emerged as the number one platform to reach Gen Z and Gen Alpha, boasting 77.7 million daily active users and 2.4 hours of daily engagement by an audience of 67% under 16 years old.

Gucci, Nivea, Netflix, NBA, Emirates, and Samsung are some of the major players who have tapped into the potential of Roblox via custom experiences, game integrations, UGC items, and more. However, being successful on Roblox entails more than merely being present, and many forward-thinking brands have found innovative ways to reach and engage young audiences. One effective strategy is having tie-ins to the real world, for instance, by selling virtual items that have corresponding physical products. In December 2021, retailer Forever 21 activated a PhyGital strategy by launching a fashion collection inspired by their Roblox UGC items, including the real-life version of their top-selling virtual item.

Bridging physical and virtual worlds is not only about selling products with virtual and physical counterparts; there are many ways to be innovative. Nerf, Paris Hilton, and Chipole deployed three exemplary PhyGital strategies to boost real-world sales, attract players as new customers, and encourage existing customers to purchase more.

Toy brand Nerf launched Nerf Hub on Roblox, offering players a chance to perfect their aim, collect exclusive virtual items, and teleport to some of the most popular games on the platform, including Adopt Me!, Jailbreak, and Murder Mystery 2.

They extended this activation into the physical realm by designing real-world toy guns inspired by these iconic Roblox games. Each physical item came with an exclusive code that players could use to redeem their virtual counterparts and unlock the special abilities in the corresponding Roblox games.

Socialite and businesswoman Paris Hilton launched Slivinland on Roblox, inviting players to experience her favorite activities: discovering, shopping, collecting, and partying.

Paris Hilton activated a PhyGital campaign by partnering with the hospitality company Hilton to launch a loyalty program with real-world rewards. Players could enhance their Hilton Honors status by earning Hilton Honors Points through in-game challenges, allowing them to enjoy the amenities of Hilton’s hotels.

Restaurant chain Chipotle launched Chipotle Burrito Builder on Roblox, a 90s-themed simulation game in which players roll burritos to earn Burrito Bucks, the in-game currency.

This activation bridged the virtual and physical world on National Burrito Day, when the first 100,000 players to roll a burrito successfully could exchange their Burrito Bucks for an entrée code redeemable for a free burrito on Chipotle’s digital platforms.

These early PhyGital campaigns have demonstrated brands’ appetite for driving real-world commerce via Roblox, while success stories such as Nerf, Paris Hilton, and Chipotle highlight that players are eager to spend real money on physical products.

This mutual interest in bridging virtual and physical worlds has led Roblox to venture into e-commerce on the platform to create an interconnected ecosystem where both realms complement and enhance each other. Teased in October 2022, this feature is now available to the public, with a pilot test launched in May in partnership with Walmart. Within Walmart Discovered on Roblox, players can navigate to a shopping area where three real-life products and their digital counterparts are displayed. Players can inspect the items and press a “buy” button to bring up the corresponding product page, enabling a standard add-to-cart and checkout process.

This update to the Roblox platform is set to revolutionize PhyGital marketing, providing brands with unprecedented opportunities to innovate in their strategies for engaging players and generating revenue on the platform.

As Roblox evolves from a mere gaming platform to a full-service Exclusible is an innovative studio that builds and launches gaming and immersive experiences.

We offer expert guidance to brands seeking to make meaningful connections with young audiences and position themselves at the forefront of emerging tech. Our services include comprehensive go-to-market strategies, including Phygital marketing, to ensure the sustainability and longevity of our experiences.

Curious about what bridging virtual and physical worlds could look like for your brand? Let’s talk about your next project.