Roblox’s In-Game Ads Now Come Without Virtual Hassles

Roblox’s In-Game Ads Now Come Without Virtual Hassles

Published: November 16, 2023

Online gaming titan Roblox recently unveiled its bold 2024 ad roadmap with major changes to its Immersive Ads hub.

Recent investor day revelations included self-serve video features and advanced targeting like contextual and age-based options.

Brands can now buy in-game video and display spots without creating a virtual experience, marking a shift to a comprehensive ad business.

CEO David Baszucki, optimistic about advertising's growth potential, emphasized a strategic move as the platform refines virtual and real-world economies.

Plans for ad measurement and eCommerce are also in the pipeline.

Despite its youth appeal, Roblox monetizes selectively, targeting users 13 and above, affecting 57% of its audience.

Ad revenue's exact contribution from the third quarter's $713.2 million remains undisclosed. However, Stephanie Latham, Roblox's VP of global partnerships, confirmed it's been a small contributor.

Open auctions via the self-serve ad platform offer opportunities, while the first quarter of 2024 will introduce video functionality on in-game billboards, featuring muted ads with rewarded video options for user engagement.

Competing with Meta and TikTok in ad revenue, Roblox plans significant ad business scaling.

Strategies include hiring experienced sales staff, building measurement capabilities, expanding the partner program and forming partnerships with DSPs, resellers, agencies and brands.

Michael Gaizutis, the founder of RNO1, a globally recognized experience design agency specializing in tech and commerce brands, spoke about Roblox’s ad strategy in a recent interview with DesignRush.

He emphasized that while the broader metaverse concept is still evolving, platforms like Roblox showcase the current potential of immersive digital spaces, paving the way for future advancements.

The strategic moves by Roblox to enhance advertising, broaden access and explore real-world shopping align with the ongoing evolution of digital experiences.

The shopping platform for real-world purchases aims at a full-funnel offering for marketers, though it's in early exploration.

Updates are expected in the latter half of next year, with immediate plans including revamped self-serve targeting, enabling advertisers to target users by age, gender and device.

Contextual targeting based on in-game categories and gameplay styles was also introduced. Roblox expanded its subscription offering for game developers, allowing all creators to offer paid subscriptions.

Developers retain 70% of revenue for the first three desktop months, with Roblox's cut dropping to 15%. On Apple and Google devices, the 30% cut remains to cover app store fees.

Currently hosting about 200 brands, Roblox aims to break entry barriers for advertisers and achieve growth through education and industry engagement over the upcoming year.

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