Roblox, a popular gaming platform, has been experiencing steady growth in ad revenue, although it currently trails behind other platforms in terms of overall revenue. During a conference following the presentation of their third-quarter 2023 results, Roblox’s CFO, Mike Guthrie, emphasized the importance of brand engagement and the lively virtual economy surrounding them, despite the modest ad revenues.
Roblox aims to increase its ad revenue, and while it hasn’t disclosed details about the implementation of programmatic advertising, which is currently in beta testing, it has set the end of 2023 as the launch date for this type of advertising as a fully functional product.
The Roblox platform seeks to attract more brands to invest through programmatic advertising and customized options for creating branded experiences. However, Gamefam, a leading Roblox game developer, has decided not to join the Partner Program, citing a focus on their own network and format. Gamefam’s success is evident in the popularity of their Sonic The Hedgehog game, which is the most successful branded experience on the platform. Joe Ferencz, CEO of Gamefam, believes that not all brands need to find success on Roblox, underscoring that the platform is primarily a gaming platform and brands should approach it with the right mindset.
Roblox has an advantage over other gaming platforms like Fortnite in terms of its unique measurement capabilities and data tools. The platform offers extensive data on performance for developers, including daily game visits and rankings. This gives Roblox an advantage when brands are looking for a primary presence in the metaverse. While Fortnite may boast exceptional 3D graphics, the larger and more active Roblox user community, along with its measurement tools, continue to make the platform attractive for brand engagement.
With the growth of ad revenue and the recognition of the value of engaging with this platform, the future of Roblox seems promising. By implementing programmatic advertising and investing in branded experiences, Roblox solidifies its position as a valuable marketing channel, expanding opportunities for both brands and creators in the metaverse.