A new wave of brands are partnering with in-game modders to reach Gen Z

As 2025 approaches, some seasoned marketers have begun forging a new path to reach and engage gamers with astonishing success. It may seem strange that this new direction involves brands supporting in-game developers, but a deeper understanding of user-generated content (UGC) in gaming, combined with Gen Z’s values, attitude and mindset, makes the picture much clearer.

As advertisers continue to hone their understanding of the ever-growing opportunity in gaming, a new wave of brands are already rewriting the playbook.

What began with traditional marketing strategies (think interest-based targeting across social channels and collaborations with influencers), eventually expanded into advertising inside of mobile games, lofty esports sponsorships and more immersive brand integrations inside major titles such as Fortnite and Roblox. Reflecting this maturity, in recent years world-leading media agencies have established dedicated divisions (see Dentsu Gaming and Havas Play) to support the elevated demands from brands looking to engage gamers in deeper and more authentic ways.

But whilst many brands are still dipping their toes into the nuances and efficacy of IAB’s still relatively new standardized advertising measurement guidelines – “in-game,” “around-the-game,” and “out-of-game” – some seasoned marketers are already racing ahead and embracing emerging opportunities that are pushing the industry to keep pace.

At first glance, it may seem strange that this new wave of strategic advertising revolves around brands supporting in-game developers, but a deeper understanding of user-generated content (UGC) in gaming, combined with Gen Z’s values, attitude and mindset, makes the picture much clearer.

Brands are Realizing that UGC in Gaming is Mainstream

Short for “modification,” modding refers to the process where players or fans alter various aspects of a video game, such as its appearance or functionality. These changes can vary from minor adjustments to extensive overhauls, often enhancing the game’s longevity and overall appeal.

Whilst a handful of major studios do not officially support modding inside their games (yet), many more have not only embraced it, but have done everything they can to integrate UGC functionality into the essential core of their games. Research shows that games with user-generated content achieve 64% better retention after two years, climbing to 90% after five years - compelling data that is driving the entire gaming ecosystem towards a UGC-dominated world.

It is interesting to note that of the top 10 most popular games globally; three of the biggest heavy hitters (Counter-Strike 2, Dota 2 and PUBG) were originally mods inside other games, created by bedroom developers who have gone on to establish the most powerful game studios in the world. Even League of Legends – a powerhouse title created in 2009 that currently holds 180 million monthly active players and has its own Netflix show (the most expensive animated series in the world) – was midwifed into existence by two gamers (now Riot Games) obsessed with the original Dota 2 mod.

Today's modding ecosystem operates on an unprecedented scale, and brands and advertisers are beginning to uncover it. From Minecraft to Sims 4, Stardew Valley to Balders Gate III and even Grand Theft Auto V, the top 100 most popular titles of 2024 list is bursting with UGC-centric games. The world’s leading gaming modification platform CurseForge (acquired by Overwolf from Twitch in 2020) hosts millions of community-created mods across thousands of games generating billions of downloads.

Advertisers are now understanding that far from being a niche sub-culture, modding has been and continues to be the dominant backbone of mainstream gaming.

Modding vs Fortnite UEFN vs Roblox Experiences

Whilst 2024 has seen brands flock at an unprecedented scale towards developing custom Fortnite and Roblox Experiences in order to engage gamers during playtime, the opportunity of modding is only now being uncovered.

Part of this discovery has evolved from the graveyard of abandoned Fortnite and Roblox activations that continues to pile up as brands struggle to drive awareness, consideration and retention. Digiday’s gaming specialist Alexander Lee analysed this well in Why Fortnite and Roblox still rely on social to drive discovery and engagement of branded experiences. The drive for brands to engage gamers during the heat of playtime is undeniably alluring, but the execution needs to be reassessed.

One key insight here is that branded activations via Fortnite UEFN and Roblox create friction where gamers must stop what they are already enjoying to try something that goes against their current playing habits. Alongside this, branded activations in this space can often lack the depth that’s needed to maintain attention and replayability for more than a few minutes.

Mods, on the other hand, are consumed by millions of gamers on a daily basis as a complimentary accessory to their existing playtime experience. They don’t dictate the way gamers want to play the game, rather they unlock something new inside it.

More than that, modding is community-driven. In-game creators drive the majority of the modding ecosystem, and brands working with aspiring mod creators ensures what they create will not only resonate, but will be considered credible by the community.

Why Does Gen Z Care about In-Game Creators?

For Gen Z, gaming is more than just an activity; it’s a cornerstone of their social lives. As research indicates, 84% of gamers embrace video games as a means to better connect with others. This creates a strong collective desire to foster a positive environment and support those who enhance the overall experience – and this means the 100,000s of hobbyist in-game creators working tirelessly to bring new forms of entertainment to millions.

This relationship is deeply reciprocal for the major game studios too. 78% of players say they feel more invested in a game when their feedback is acknowledged and implemented, highlighting the immense responsibility big game studios have to meet the community’s needs. When the major studios can’t keep up with the unrelenting demands of gamers, in-game creators step in to save the day.

For advertisers, this creates a win-win scenario: brands gain access to engaged audiences while earning goodwill for directly empowering creators. Gamers see the dedication developers pour into creating and improving their worlds, and they want to see that work rewarded. By channeling ad revenue back to creators, brands become part of the community’s ecosystem rather than an external force vying for attention.

How Brands Are Supporting Game Developers

Renault’s recent Modder5 campaign is a perfect playbook for others to learn from. Havas Play France and the Renault team have been quietly modding its little electric car into Stardew Valley, Minecraft, Stray, Palworld, Garry's Mod and more to achieve unprecedented scale and visibility across completely distinct and diverse audiences.

Not only that, the campaign press release indicates they tapped community developers in order to achieve authenticity (“Renault collaborated with renowned modding experts specialized in each video game. Like a street artist who transforms in public spaces, modders enhance the video gaming space.”).

Building on this, Knorr and MullenLowe UK launched #ModTheVeg, cleverly blending a purpose-driven campaign around healthy eating into gaming by calling on developers to create in-game modifications to change perceptions. Like with Renault, the campaign spread its wings across multiple mod-friendly games such as Minecraft, World of Warcraft, Skyrim, GTA V and more.

More recently, Hasbro teamed up with CurseForge to launch Power Rangers mods inside survival game sensation ARK: Survival Ascended. Not only did the gaming community welcome the well-loved franchise into their playtime experience, but since it was a premium mod it also created an additional digital revenue stream for Hasbro.

One broader example worth sharing are brands like Pringles, KFC, Monster Energy and P&G activating on Overwolf; a platform that hosts thousands of community-made apps for hundreds of premium games. Advertisers here are able to serve both IAB standard and custom ad formats across premium titles such as Fortnite, League of Legends and Minecraft through these third-party apps that are open whilst gamers are playing.

Roughly 70% of Overwolf’s ad revenue goes back to the in-game creators, which creates a win-win scenario: brands gain access to engaged gaming audiences while earning goodwill for directly empowering creators.

A Blueprint for 2025

Brands that hope to succeed with Gen Z gamers must rethink their approach to advertising. It’s no longer about being seen; it’s about being welcomed. Supporting game developers, modders, and creators not only aligns with the values of Gen Z but also ensures that advertising efforts add value rather than detract from the experience.

As gaming continues to evolve, the future of advertising lies in collaboration, not interruption. By investing and supporting in-game creators, brands can build lasting connections with the gamers of today and tomorrow. In a world where credibility is currency, this strategy isn’t just effective – it’s essential.