Roblox has launched a new video advertising format on its gaming platform and announced a partnership with Google to enhance the growth of its emerging ad business.
Players can now choose to watch video advertisements of up to 30 seconds in exchange for in-game boosts, lifelines, or resources through rewarded videos.
In the coming weeks, brands and agencies will have the opportunity to purchase this new advertising format either directly or via Google's ad platform, expanding Roblox's offerings to a broader range of advertisers.
With strong engagement and monetization on its main gaming platform, Roblox aims to expand its overall business through advertising, capitalizing on its substantial Gen Z user base. As of the quarter ending December 31, Roblox had a significant number of daily active users, primarily aged 13 and older.
Scott Sheffer, vice president of sellside monetization at Google, noted in a recent briefing that traditional ad formats often do not align with gamers' experiences, as they want to remain immersed in their games.
In a competitive gaming industry, the advertising business allows Roblox to diversify its revenue streams and establish itself as an appealing option for marketers targeting a large audience.
The company has also engaged former Roku executives to strengthen its advertising efforts and partnered with data measurement firms like Cint, DoubleVerify, and Nielsen to enable brands to track campaign performance.
Upcoming months will see the introduction of additional ad formats, such as billboards, through Google Ad Manager.