- Roblox Corp. (RBLX) shares rose nearly 6% to $61.82 in premarket trading after launching rewarded video ads up to 30 seconds long, offering in-game perks to its 85.3 million Daily Active Users.
- A new partnership with Google (GOOG) will enable brands to buy these ads directly or through Google’s platform in the coming weeks, with additional formats like billboards planned, enhancing Roblox’s appeal to advertisers targeting Gen Z.
- Collaborations with data firms Cint, DoubleVerify, and Nielsen will help track ad performance, supporting Roblox’s strategy to diversify revenue and strengthen its position in the competitive gaming industry.
Roblox Corp. (RBLX) is making significant strides in expanding its advertising ecosystem, a move underscored by a nearly 6% surge in its stock price to $61.82 in premarket trading on Tuesday. The company has unveiled a new video advertising format on its gaming platform, allowing players to opt into watching ads up to 30 seconds long in exchange for in-game perks like boosts, lifelines, or resources. This “rewarded video” model taps into the immersive nature of Roblox’s environment, where 85.3 million Daily Active Users – most of whom are over 13 – engage daily, as reported in the quarter ending December 31. By integrating this format, Roblox is capitalizing on its predominantly Gen Z audience, a demographic highly prized by marketers for its spending power and digital fluency.
The strategic partnership with Google (GOOG) marks a pivotal step in amplifying Roblox’s advertising ambitions. In the coming weeks, brands and agencies will gain access to this new ad offering either directly through Roblox or via Google’s ad platform, broadening the reach to a diverse pool of advertisers. Scott Sheffer, Google’s vice president of sellside monetization, emphasized the challenge of traditional ad formats in gaming during a roundtable briefing, noting that they often disrupt the player experience. Roblox’s approach sidesteps this pitfall by embedding ads as a value exchange within gameplay, a design that aligns with the platform’s ethos of keeping users engaged rather than pulling them away. With Google Ad Manager set to incorporate additional formats like billboards over the coming months, Roblox is poised to deepen its integration into the broader advertising landscape.
Beyond the Google collaboration, Roblox has fortified its measurement capabilities through partnerships with data firms Cint, DoubleVerify, and Nielsen. These alliances enable brands to track campaign performance with precision, offering insights into how ads resonate with Roblox’s vast user base. This move reflects a broader trend in the gaming industry, where companies face intense competition and seek to diversify revenue beyond in-game purchases. For Roblox, advertising represents a natural extension of its robust engagement and monetization metrics, leveraging a platform that has already proven its stickiness with younger audiences. The company’s focus on scalable, non-disruptive ad formats positions it as a compelling channel for marketers aiming to connect with a generation that increasingly shuns conventional media.
The introduction of rewarded videos and the expansion through Google’s infrastructure signal Roblox’s intent to transform its advertising business into a significant revenue driver. With more than 85 million daily users, the platform’s scale offers a unique opportunity to bridge gaming and marketing in a way that feels organic to its community. As Roblox continues to roll out new ad formats and refine its offerings, it is not only diversifying its financial foundation but also redefining how brands can engage with the next generation of consumers within a virtual world that commands millions of hours of attention each day.
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