Investing.com - Financial Markets Worldwide

Roblox stock rises following new ad format and Google partnership

Published 01/04/2025, 19:50
© Reuters
GOOGL
-0.94%
GOOG
-0.87%
RBLX
0.04%

Investing.com -- Shares of Roblox Inc (NYSE:RBLX) climbed 3.5% today after the company announced the introduction of a new video advertising format and a partnership with tech giant Google (NASDAQ:GOOGL). The gaming platform’s move aims to expand its nascent advertising business, allowing users to receive in-game rewards for watching video ads.

Roblox’s latest advertising venture offers brands and agencies the option to purchase these new ad formats either directly or through Google’s advertising platform. This initiative is expected to make Roblox’s ad offerings more accessible to a wider range of advertisers. With a strong engagement and monetization track record on its primary video game platform, Roblox is looking to enhance its overall business by tapping into advertising opportunities, particularly with its substantial Gen Z user base.

The company’s foray into the advertising realm is part of a broader strategy to diversify its revenue streams. This move positions Roblox as an attractive platform for marketers aiming to reach a large and engaged audience. In 2020, Roblox hired former Roku (NASDAQ:ROKU) executive Louqman Parampath to bolster its advertising strategy.

Further cementing its commitment to the advertising sector, Roblox has partnered with data measurement firms such as Cint, DoubleVerify (NYSE:DV), and Nielsen. These partnerships are designed to help brands measure the effectiveness of their advertising campaigns on the platform. Roblox also hinted at the introduction of additional ad formats, including billboards, to Google Ad Manager in the near future.

The collaboration with Google and the push into video advertising are significant steps for Roblox as it continues to innovate and expand its business model beyond its core gaming offerings. Investors responded positively to the news, reflected in the stock’s upward movement in today’s trading session.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.