Roblox Launches Video Advertising On Virtual Reclame Board To Increase Revenue

JAKARTA - The game platform Roblox announced on Wednesday May 1, that it will launch a virtual billboard with video ads, as the latest move to earn revenue from their mostly free game to play.

Users will now see billboards featuring content from brands such as e.l.f beauty, Walmart, and Warner Bros Discovery, just like in real life.

This will provide access for advertisers to nearly 72 million daily active users of Roblox half of whom are Generation Z customers, a population group that marketers and businesses really want.

Companies in November started testing the video ads to be shown to users aged 13 and over as part of their efforts to reduce their dependence on revenue generated from the currency in their game "Robux", which players can use to buy clothes, vehicles, and other features in the company's digital world.

Roblox charges for all purchases made on its platform, which hosts millions of video games created by their users that get a share of the associated revenue.

The practice will be extended to advertising, with virtual world creators opting to feature billboards getting a share of Roblox's revenue from the ad.

Roblox hopes their large Generation Z user base will give the advantage in competitive advertising markets, where they will have to compete to earn money from marketing with tech giants like Google and Meta Platforms as well as small players like Snap.

"By advertising on Roblox, brands can create deeper relationships and involve tens of millions of Generation Z users," said Stephanie Latham, vice president of global brand partnerships.

"We are also in the beta stage with some partners on how the finished cost-per-view product will look on Roblox, so we hope to have more details later this year," Latham said.

The company last month hired advertising technology company PubMatic (PUBM.O) to increase sales of the new video ad.