"Roblox Corp. executives have been trying to get advertisers to market their wares in the gaming platform's virtual worlds since the company went public in 2021. It's a chance for brands to reach the 150 million people who spend an average of two hours a day on Roblox. Inside its games, virtual billboards and video ads can tempt the platform's young audience with images of fast-food hamburgers and trailers for movies like Wicked: For Good."
"Yet four years after the ad push began, there are few signs of progress. On 10 straight quarterly calls with investors, analysts have asked what's going on, and Baszucki has mostly deflected their questions, saying advertising is a future opportunity. Even after signing a partnership with Google in April, it remains an insignificant part of the business, according to the company's most recent quarterly filing."
"Multiple obstacles stand in the way of Roblox becoming the internet's next ad juggernaut. For starters, the developers who create its games aren't embracing ads in large numbers, in part because the money isn't substantial, according to several interviewed by Bloomberg. Ad rates for dozens of Roblox games ranged from a fraction of a penny to 55 cents for every thousand visits, according to the creators, who asked not to be identified discussing nonpublic information."
Roblox has pursued advertising since its 2021 public listing to reach roughly 150 million users who average two hours per day on the platform. Brands can place virtual billboards and video ads inside games to target younger audiences with product images and movie trailers. Despite executive optimism and a Google partnership, advertising remains an insignificant revenue source. Roblox says it is scaling a premium immersive ad channel and is satisfied with early progress. Many game developers decline ads because payout rates are low, reportedly ranging from a fraction of a penny to $0.55 per thousand visits. Developers often prefer selling in-game items instead, limiting ad adoption.
Read at www.mercurynews.com
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