.png)
German (DE) 
English (US) 
Spanish (ES) 
French (FR) 
Hindi (IN) 
Italian (IT) 
Russian (RU) Lawrence Nga, The Motley Fool
Sat, May 17, 2025, 3:15 PM 5 min read
In This Article:
-
The digital gaming platform is partnering with Google on immersive advertising.
-
The partnership could help scale Roblox's advertising business in the long run.
-
Investors will want to monitor Roblox's execution in the coming quarters.
Roblox (NYSE: RBLX) has been a controversial investment for many investors. On one end, it has pioneered the unique business model that combines user-produced games, social networking, and a digital economy, demonstrating an early version of what the metaverse could look like.
Yet, investors have reservations about Roblox's dependence on selling Robux (its digital currency) for revenue. So, its recent partnership announcement could be a major step toward addressing investors' concerns.
At the recent IAB Playfronts 2025 conference on advertising, Roblox unveiled a significant step forward in its advertising strategy; rewarded video ads will soon be available for programmatic and direct purchase through Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google ad platforms. This partnership gives Roblox instant access to a broad network of brands and agencies, making it far easier to scale immersive ads across the platform.
Rewarded video ads let users voluntarily watch up to 30 seconds of full-screen video in exchange for in-game rewards, like power-ups or currency, offered by the game's creators. Early tests were promising, with average completion rates exceeding 80% and some experiences over 90%, suggesting that users see real value in the exchange.
By integrating with Google Ad Manager, Roblox can meet advertisers in places where they already buy ads, which helps in removing friction and expanding reach. This rollout also unlocks a new revenue stream for Roblox and gives creators another way to monetize their content while enhancing user engagement.
As for Google, this partnership helps it expand its immersive ads offerings, having now added video formats in both Google Ad Manager and AdMob. In short, it's a win-win-win for the parties involved.
The partnership with Google could be transformative for several reasons. By integrating with Google's ad infrastructure, Roblox becomes accessible to millions of advertisers who are already using Google Ads. This approach helps Roblox quickly scale its advertiser base with very little investment instead of building its advertiser base.
If this partnership is successful, it could lead to even deeper collaboration in the future, transforming Roblox from a niche gaming platform into a mainstream digital ad platform, much like YouTube did years ago.
Comments