Roblox opens up new ad format as it looks to build its ads business

seekingalpha05-01

Roblox (NYSE:RBLX) is opening up its video ads offering to all advertisers following testing over the past six months, as the video game platform looks for more ways to monetize its free to play games...

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Users will now see video advertisements running on virtual billboards and other screens within the platform's virtual relams, featuring content from brands such as e.l.f. Beauty (ELF), Walmart (WMT) and Warner Bros. (WBD).  The ads will allow advertisers to reach Gen Z customers, who represent over half the platform’s 71.5 million daily active users. According to Roblox (RBLX), Gen Z users are its top-spending demographic.  \"By advertising on Roblox, brands can create deeper connections and engage tens of millions of Gen Z users who represent our top-spending demographic and spend millions of hours here daily,\" said Stephanie Latham, vice president of global brand partnerships.  Roblox had hired Latham, a former Meta (META) advertising executive, in October 2023 to help attract more brands to its platform. The company's emphasis on its Gen Z audience highlights its ambitions to compete for ad dollars with traditional digital advertising players like Meta Platforms (META), Alphabet (GOOG) (GOOGL) and Snap (SNAP).  The company first introduced 3D advertising in 2023, through portal and image ad formats, in a bid to diversify its revenue stream beyond in-game purchases and premium subscriptions.  Roblox (RBLX) added that it had signed partnerships with media measurement providers Integral Ad Science and Kantar. In early April, the company announced a partnership with ad-tech company PubMatic (PUBM) to sell immersive video ads it's been developing.","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2432250521"}