Roblox has unveiled a new video advertising format on its gaming platform and announced a strategic partnership with Google to enhance its emerging advertising business. This new initiative aims to tap into Roblox’s highly engaged Gen Z user base while expanding its advertising capabilities.
The new video ad format allows gamers to choose to watch ads, up to 30 seconds in length, in exchange for rewards such as boosts, lifelines, or resources within a game. This “rewarded video” model ensures that ads are integrated seamlessly into the gaming experience, offering value to both players and advertisers alike.
In the coming weeks, brands and advertising agencies will be able to purchase these new ad placements either directly or via Google’s advertising platform, making Roblox’s innovative ad offerings more accessible to a broader pool of advertisers.
Roblox’s gaming platform continues to show strong user engagement, with 85.3 million daily active users as of December 31, 2024, the majority of whom are aged 13 or older. This demographic is particularly attractive to advertisers looking to reach a younger, tech-savvy audience.
“Traditional advertising formats haven’t always been the best fit for gaming platforms, as they risk disrupting the user experience,” said Scott Sheffer, Vice President of Sellside Monetization at Google, during a roundtable briefing. “With this new format, gamers remain immersed in the experience while still receiving relevant brand messages.”
As Roblox continues to face increasing competition within the gaming industry, expanding its advertising business allows the company to diversify revenue streams. The platform is positioning itself as an appealing option for marketers seeking to tap into a large, engaged audience.
Roblox has also teamed up with leading data measurement firms like Cint, DoubleVerify, and Nielsen to help brands track the performance of their ad campaigns more effectively.
Looking ahead, Roblox plans to introduce additional ad formats, including in-game billboards, which will be available through Google Ad Manager in the coming months.
This partnership and new ad format signal a significant step in Roblox’s continued expansion into the advertising space, offering a fresh and engaging way for brands to reach their target audience within the gaming world
