The more than 71 million daily users of Roblox’s platform—at least, those who are 13 or older—will now see video advertisements while roaming digital realms as the company tries to increase revenue by selling ad space to brands. (The Wall Street Journal)
Talking point: Roblox, headquartered in San Mateo, Calif., with an office in Vancouver and a Canadian CEO, started piloting video ads for some users last year. Its user base skews young, and it has faced criticism in the past for violating guidelines on marketing to children under 13, though the company has pushed back against some of those claims. Roblox mostly makes money from selling virtual currency, but is not yet profitable. It went public on the New York Stock Exchange in 2021 and to date has mostly incorporated ads by letting brands like Nike and Tim Hortons build realms, sell virtual goods or host special events. They’ve been able to purchase static ads as well as virtual gates that move users into the brand’s creation.