Rewarded video ads allow users to earn in-game perks for watching up to 30-seconds of full-screen video ads, according to a statement from Roblox. — Unsplash
Roblox Corp is partnering with Alphabet Inc’s Google to offer ads that encourage player engagement, marking a significant step in the video-game platform’s push to generate more revenue from advertising.
Rewarded video ads allow users to earn in-game perks for watching up to 30-seconds of full-screen video ads, according to a statement from Roblox on Tuesday.
Roblox shares gained 1.9% US$59.40 (RM264.46) Tuesday morning in New York.
The gaming platform, which has 85 million daily users, has been increasing its advertising capability over the last few years, creating lucrative partnerships with the likes of Ralph Lauren Corp, Chipotle Mexican Grill Inc and other brands. Roblox doesn’t give details of how much revenue it generates from advertising. Chief executive officer Dave Baszucki said in a recent earnings call that "when we feel advertising is big enough, we’ll break it out.”
In the next few weeks, Google will help Roblox scale those advertising efforts to meet demand from brands and agencies, according to the statement. Roblox will also work with Nielsen, Cint, DoubleVerify and others to help brands measure and select their audiences.
In the coming months, Roblox will bring more of its immersive formats, such as video and image ads known as Billboards, to Google Ad Manager, the company said. It will also use Google’s Authorized Buyers program to connect supply-side platforms like PubMatic with demand-side platforms. – Bloomberg
