Ever bought a designer handbag in a video game?  It might sound unusual, but gaming has become a mainstream marketing channel, offering brands unique ways to connect with digital-first audiences. While many advertising strategies focus on Games as a Service (GaaS) models like Roblox or Fortnite, Games as a Product (GaaP) titles – such as Animal Crossing: New Horizons – have also provided high-impact brand collaboration opportunities.

With over 45 million copies sold, Animal Crossing: New Horizons quickly became a cultural phenomenon, attracting a broad demographic of players, including Gen Z, Millennials, and nostalgia-driven adults. Its customizable world enabled brands to seamlessly integrate into players’ experiences, allowing for immersive, organic interactions rather than disruptive advertising.

Although New Horizons no longer receives updates, making new brand activations impossible, it remains a valuable real-life example for successful gaming marketing. Its past campaigns highlight key strategies that brands can apply to future gaming collaborations.

What Made Animal Crossing and Appealing Ad Investment

Gaming consoles like Xbox, Nintendo Switch, and PlayStation have evolved into interactive spaces where millions of players design, build, and engage daily. These virtual environments offer brands the opportunity to seamlessly integrate into digital lifestyles through collaborations that feel organic, not intrusive. 

With Gen Z and Millennials spending hours in these digital worlds, gaming has become a mainstream social hub for shopping, socializing, and building brand relationships. Animal Crossing: New Horizons, in particular, boasted a high engagement rate due to its real-time format that encouraged players to check in every single day.

As a result, your brand integrations were almost guaranteed to be seen – and experienced. Whether visiting a branded island, trying virtual outfits, or participating in in-game events, their engagement is far deeper than traditional ads can offer.

Like in Animal Crossing, gaming activations provide tangible business benefits:

  • Authentic brand Interaction & long-term loyalty: In-game advertising seamlessly integrates brands into gameplay, making interactions feel organic while fostering early brand affinity and long-term customer loyalty.
  • High reach and engagement: The gaming industry attracts a massive and diverse audience, with millions of daily active players across different platforms. Gaming encourages active participation, leading to higher engagement rates.
  • Data-driven targeting: Gaming platforms provide detailed audience insights, allowing brands to target specific demographics with personalized, relevant messaging that aligns with players’ behaviors and interests.

How Retail Brands Won Big with Animal Crossing Ads

Brands in Animal Crossing tapped into these benefits and jumped in to create experiences that players actually wanted to be part of. They blended into the game’s world, made an impact, and got people talking.

From Digital Spaces to Brand Worlds

The most successful brand campaigns in Animal Crossing involved building fully immersive spaces that players explored, shared, and returned to. Tatcha turned Animal Crossing into a self-care escape with Tatchaland, a virtual wellness retreat designed to bring mindful beauty into the game. To launch a new cleanser, players could build spa-like spaces and take part in Japanese-inspired rituals – all seamlessly integrated into the game’s world.

What’s more, Tatcha teamed up with Alo Yoga, blending skincare with movement and mindfulness. The activation sparked organic buzz across social media, reinforcing Tatcha’s brand identity and encouraging self-care as part of players’ digital and real-world routines.

Bridge Virtual and Reality

With its Animal Crossing collaboration, the European supermarket-turned-online-marketplace Kaufland bridged virtual engagement and real-world actions with Kaufisland. The custom-built virtual supermarket designed to bring its brand values into the game. Designed with a popular Twitch streamer, the island let players explore sustainable shopping practices – from learning about food sourcing to recycling deposit bottles. More than just a digital showcase, Kaufisland reinforced Kaufland’s real-world commitment to sustainability while engaging players in a fun, interactive way.

This kind of integration goes beyond branding – it creates meaningful interactions that align with player values. Whether through virtual try-ons leading to real purchases or in-game events tied to social causes, brands that merge digital and physical experiences drive credibility, engagement, and long-term loyalty.

Power Up with Creators

Gucci’s collaboration introduced luxury fashion to Animal Crossing with a custom island featuring branded outfits and themed decor. Players could dress their avatars in exclusive Gucci designs and share their looks online, generating widespread user-generated content and boosting brand visibility among younger audiences. Partnering with gaming creators further amplifies this effect, helping brands organically expand their reach and foster authentic engagement within gaming communities.

Brands that partner with creators who understand gaming culture can take this engagement even further. In Animal Crossing, collaborations often involve custom-designed outfits, exclusive in-game events, or interactive brand spaces created by well-known gaming influencers. These creators introduce the brand to highly engaged and diverse player communities, making the integration feel natural rather than promotional. When done right, these partnerships drive organic brand advocacy, increase visibility across platforms like Twitch and TikTok, and strengthen credibility within the gaming community.

How to Spot the Next Big Things in Console Game Marketing

Animal Crossing set a new standard when it comes to in-game advertising. So, how do you know if a console game is worth the ad investment?

  • Your target audience can’t get enough: Due to its unique IP, Animal Crossing had players of all ages hooked for years. Find out which other games your customers can’t get enough of – and whether their engagement rates and game format promises long-term potential.
  • Can you make it meaningful? Players can spot inauthentic marketing a mile away. The most successful Animal Crossing collaborations blended naturally into gameplay and aligned with player interests. Kaufland’s sustainability-focused island, for example, created an experience that felt like a natural part of the game.
  • Consider new success metrics: Gaming activations require a fresh approach to KPIs. Instead of focusing on traditional conversion rates, track community engagement, social shares, and brand sentiment. Look for organic conversations: Are players sharing your content, visiting your virtual space, or recreating your brand in-game? These indicators reflect real impact.

Pro tip: Document everything from day one. The insights you gather will help optimize future ads and justify bigger investments.

Animal Crossing Collaborations Proved Gaming Is the Future of Brand Marketing

The success of brand collaborations in Animal Crossing proved that marketing in video games is a powerful way to connect with engaged audiences. From Tatcha’s self-care retreat to Kaufland’s sustainability-driven supermarket, these activations showed how brands can create immersive, interactive experiences that bridge digital and physical worlds.

As gaming continues to grow as a marketing channel, brands that embrace virtual experiences, engage with gaming communities, and create value-driven interactions will stay ahead. The next wave of digital commerce is already here. 

Want to learn more? Download the white paper to explore how gaming platforms like Animal Crossing, Roblox, and Netflix are transforming brand engagement.