South African retailers are quietly experimenting with advertising in video games, and the results are beginning to reshape how brands connect with younger audiences.
There are about 26.5 million gamers in the country, and nearly 92% of internet users play games on smartphones. Brands are now moving out of malls and into virtual worlds in ways that have major implications for local commerce and marketing strategies.
According to Statista, as of quarter 3 of 2023, of the 92% internet users, 78% play on smartphones and 48% use desktops or laptops.
Newzoo data shows nearly half of South African gamers are aged 14 to 28, and the local gaming industry generated R7.3 billion ($266 million) in revenue in 2023 — a 52% year‑on‑year increase, with 91% of that coming from mobile titles.
The latest data from Statista shows that gamers spend barely R480 annually on games.
But gaming is no longer only about entertainment; it has become a ground for marketing. Platform providers and ad-tech companies are quietly partnering with brands to monetise in-game spaces through sponsorships, digital product placements and immersive brand activations.
The most visible example is Roblox, which recently introduced e-commerce tools — Commerce APIs and Shopify integration—that allow brands to sell real-world goods inside games.
With nearly 98 million daily users globally and 62% of them aged 13 and above, the platform is effectively positioning itself as a digital shopping mall for Gen Z. Users spent 21.7 billion hours on the platform in quarter 4 of 2024 — about 2.4 hours a day per user.
Microsoft-owned Minecraft has taken a subtler route, using sponsored educational content and experiential builds to connect with audiences. There’s no direct shopping involved, but brand presence earns goodwill and soft engagement in curated digital spaces.
Statista says the scope of advertising within games on smartphones tends to stay at basic formats such as banners or sponsored currency, rather than fully immersive retail experiences.
The esports or electronic sports space in South Africa offers a third hybrid model. The local market, priced at $26.4 million in 2024, has grown through events such as the MTN Shift Gaming Experience, a nationwide Fifa tournament hosted at multiple malls. These tournaments anchor brand visibility in offline worlds, while also streaming online.
But, according to esports users, problems persist. A Reddit discussion by South African gamers highlights barriers — expensive hardware and software, bureaucratic import delays, unstable connectivity and load-shedding — which make seamless online brand experiences harder to achieve.
“I just keep track of the load-shedding times and play around with them. I learned my lesson the hard way after playing competitive games and suddenly losing power,” one user said.
Users report that console prices in South Africa — typically R 7 000 to R 10 000 — are often double what consumers pay in Europe or the United States, because of import duties and a weaker rand.
In South Africa, brands like Reebok and local mobile providers have already begun integrating into the gaming space by sponsoring esports tournaments and exploring digital product placements.
Some international brands have already adapted. Fenty Beauty relaunched its shoppable Roblox experience in May 2025, allowing US players over 18 to buy real products such as an exclusive lip gloss directly from within the game.
e.l.f. Cosmetics, known for blending financial literacy and beauty in its Roblox activations, continues to experiment with deeper commerce tools.
Platforms such as Fortnite, which have worked with brands like Ralph Lauren and Balenciaga, provide similar opportunities, though Roblox’s user-generated world offers a more native environment for these experiments.
Chris Camacho, chief executive of UK-based agency Cheil, summed up the shift by saying, “For Gen Z and Gen Alpha, seeing an avatar in a hoodie, a lipstick or a pair of trainers and being able to buy the real thing on the spot just makes sense.”
According to gaming analyst agency Games Industry Africa, the African gaming market is expected to surpass $1.8 billion in revenue in 2025, driven overwhelmingly by mobile gaming. The market did reach $1.8 billion in revenue in 2024, with South Africa remaining the continent’s leading market.
Michiel Buijsman, principal games market analyst at Newzoo, said: “Africa’s gaming sector is growing rapidly and outpacing global trends, which signals that the continent is catching up and its growth cannot be overlooked. With a fast-growing mobile online population and 90% of its $1.8 billion market coming from mobile gaming, it’s clear where growth opportunities can be found.”
Global advertising agency Dentsu reports that 63% of African gamers have purchased something after seeing an in-game ad, while 44% criticise the lack of culturally relevant content.