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Roblox stock rises following new ad format and Google partnership

Published 01/04/2025, 19:50
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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.

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