Roblox launches new ad format, strengthens partnership with google

Roblox has launched a new video advertising format on its gaming platform and announced a partnership with Google to expand its advertising business.

The new format, known as rewarded video ads, allows players to watch advertisements of up to 30 seconds in exchange for in-game benefits such as boosts, lifelines, or resources. The company stated that in the coming weeks, brands and agencies will be able to purchase these ads either directly or via Google’s ad platform, broadening Roblox’s reach to a wider range of advertisers.

With 85.3 million daily active users as of its quarter ended 31 December—most of whom are over the age of 13, Roblox has sought to diversify its revenue streams beyond in-game purchases. The company has increasingly focused on advertising as a means of monetisation, leveraging its large Gen Z user base.

“Because gamers are so entrenched in the experience itself, traditional ad formats haven’t always been the right choice for app publishers, because they don’t want to pull their audiences out of those games,” said Scott Sheffer, vice president of sell-side monetisation at Google, during a roundtable briefing.

Roblox has also partnered with data measurement firms such as Cint, DoubleVerify, and Nielsen to help advertisers track the performance of their campaigns. The company previously hired former Roku executive Louqman Parampath to support its growing advertising business.

In addition to rewarded videos, Roblox plans to introduce other ad formats, including in-game billboards, which will be available through Google Ad Manager in the coming months.