Shares of video game developer, Roblox Corp (NYSE:RBLX) are trading higher on Tuesday after Rewarded Video Ads launch and partnership with Alphabet Inc (NASDAQ:GOOGL) owned Google.
The company is expanding its advertising capabilities through a new partnership with Google, allowing brands and agencies to programmatically purchase Rewarded Video ads within the gaming platform.
This move is part of Roblox’s broader effort to scale its immersive ad offerings and meet advertisers where they buy their media.
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Initial trials of Rewarded Video ads have shown high user engagement, with average completion rates surpassing 80%. In certain experiences, completion rates have exceeded 90%, as players find value in earning in-game rewards for viewing brief video advertisements.
“This new format is a win-win-win for brands, creators, and users, and we’ve been excited by the early results of our tests which have proven this out,” said Vice President of Global Brand Partnerships and Advertising at Roblox, Stephanie Latham.
“Our partnership with Google makes it very easy to buy these engaging ads and reach key audiences at scale. We are continuing to remove barriers for brands and agencies that are quickly realizing the massive potential of immersive gaming platforms like Roblox where Gen Z are increasingly spending their time.”
Through this partnership, Google Ad Manager will be integrated into Roblox’s advertising technology stack, allowing advertisers to reach millions of daily active users, many of whom belong to Gen Z demographic.
This combination will benefit both advertisers and the Roblox creator community by expanding revenue opportunities. Game developers can incorporate Rewarded Video ads into their experiences, allowing them to earn money while offering players incentives like virtual currency or power-ups.
To ensure advertisers can assess the impact of their investments, Roblox is joining hands with measurement firms such as Cint, DoubleVerify, Integral Ad Science (IAS), Kantar, and Nielsen.
These partnerships will provide brands with data on media quality, brand suitability, brand lift, and audience engagement, helping them optimize their campaigns.
Roblox plans to expand its immersive ad formats, including Billboards, to Google Ad Manager in the coming months. It will also integrate more demand sources, such as top supply-side and demand-side platforms, through Google’s Authorized Buyers.
Price Action: RBLX shares traded higher by 2.16% at $59.55 at last check Tuesday.
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