Roblox is Looking to Add Users with Video Ads Following Pubmatic Deal

Pubmatic (Credits: Pubmatic)

Roblox has enlisted the help of PubMatic to enhance the sales of its new video advertisements slated for launch later this year, the advertising tech firm announced on Wednesday.

The gaming platform started testing video ads in late 2023 as part of its ongoing efforts to monetize its platform. Creators of virtual realms within the game who choose to incorporate these ads into their experiences will receive a portion of the revenue.

Pubmatic Logo (Credits: Pubmatic)

Despite being a loss-making company, Roblox has seen its shares rise over 3% in a sluggish broader market. As of the fourth quarter, the platform boasts more than 71.5 million daily active users.

The partnership with PubMatic will enable brands to buy Roblox’s video ad inventory through real-time bidding, targeting users aged 13 and older.

Roblox Visual (Credits: Roblox)

Roblox has already teamed up with prominent brands such as Adidas, Nike, and sports car manufacturer Lamborghini to engage its virtual world fans.

The platform’s revenue primarily comes from in-game purchases of its virtual currency “Robux.”

Roblox Logo (Credits: PEGI)

To expand its reach beyond its core audience of 9 to 12-year-olds, Roblox has intensified efforts to diversify its offerings.

Nate O'Hara
Nathan is a seasoned commerce writer with a passion for unraveling the intricacies of the business world and distilling them into engaging narratives. During his academic journey, he delved deep into subjects like economics, marketing, and entrepreneurship, honing his analytical skills and developing a keen understanding of market dynamics.