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Investing.com -- Roblox, the popular gaming platform, announced a new video advertising format and a partnership with Google (NASDAQ:GOOGL) on Tuesday. This move is intended to bolster the growth of its budding advertising business. Gamers on Roblox can now opt to watch video advertisements, which can be up to 30 seconds long, in return for in-game boosts, lifelines, or resources.
In the near future, brands and agencies will have the ability to buy this new marketing format either directly or via Google’s advertising platform. This will make Roblox’s offerings more accessible to a broader range of advertisers. As Roblox’s primary videogame platform continues to see strong engagement and monetization, the company is seeking to grow its overall business through advertising, leveraging its large Gen Z user base.
In the competitive gaming industry, the advertising business has enabled Roblox to diversify its revenue streams and present itself as an appealing option for marketers seeking a large audience. In 2020, the company brought on former Roku (NASDAQ:ROKU) executive Louqman Parampath to assist its advertising business.
Roblox has also formed partnerships with data measurement firms such as Cint, DoubleVerify (NYSE:DV), and Nielsen to assist brands in tracking the performance of their campaigns. The company revealed that other ad formats, such as billboards, will be introduced to Google Ad Manager in the coming months.
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