File photo: A man photographs a Roblox banner displayed, to celebrate the company's IPO, on the front facade of the New York Stock Exchange (NYSE) in New York, U.S., March 10, 2021. REUTERS/Brendan McDermid/File photo
(Reuters) - Roblox has hired PubMatic to help ramp up sales of new video advertisements the gaming platform expects to launch later this year, the advertising tech firm said on Wednesday.
Roblox began testing video ads towards the end of 2023 as part of its latest efforts to monetize its platform. Creators of virtual realms on the videogame who enable these ads in their experiences will get a share of the revenue.
Shares of the loss-making company, which had more than 71.5 million daily active users at the end of fourth quarter, rose more than 3% in a weak broader market.
The deal with PubMatic will allow brands to purchase Roblox's video-ad inventory through real-time bidding that will be served to users who are 13 and older.
The platform has partnered with brands including Adidas, Nike and sports car maker Lamborghini to engage its fans in the virtual world.
Roblox, which depends on in-game purchases of virtual currency "Robux" to generate revenue, has stepped up efforts to diversify and move beyond it core audience of 9 and 12 years.
(Reporting by Harshita Mary Varghese; Editing by Sriraj Kalluvila)
