Dive Brief:

• Roblox has partnered with Google to scale its new rewarded video ad format, according to a press release. Brands and agencies will be able to buy the ad format programmatically via Google’s advertising solutions in the coming weeks.
• The videos will be full-screen 30-second advertisements which will reward the consumer with in-game benefits. The average completion rate of the advertisements overall is over 80%, with some seeing over a 90% completion rate, according to early tests.
• In addition, Roblox has partnered with Cint, DoubleVerify, Integral Ad Science, Kantar and Nielsen to help measure the efficacy of campaigns on the platform. Roblox announced the news at IAB Playfronts.

Dive Insight:

The partnership between Roblox and Google marks the next step in immersive advertisement for both companies. The high rates of completion suggest the format is resonating with users and could be a valuable tool for brands looking to advertise on the platform.

“Immersive ads now also allow advertisers to tap into an audience that may have been largely unavailable to them before and in a very relevant way to raise brand awareness,” said Scott Sheffer, vice president of sell side monetization at Google, in press materials about the Roblox integration. 

Roblox plans on adding its Billboards and other immersive advertising options to Google Ad Manager, allowing advertisers to scale the immersive ads programmatically. The platform will also connect with both demand- and supply-side platforms via Google’s Authorized Buyers solution.

Partnerships with third-party measurement firms will provide advertisers with several solutions for determining brand safety and brand lift, optimizing ROI and enabling cross-platform campaign measurement. Previously, Roblox partnered with WPP to develop 3D measurement standards and a certification program for those looking to better understand the platform’s ecosystem.

Roblox has become a go-to destination for advertisers looking to engage Gen Z consumers. The immersive, open platform allows for brands to create whole experiences to engage consumers. Brands from furniture retailer Ikea to luxury fashion brands such as Gucci have experimented with Roblox to varying degrees. Warner Bros. in August stepped up a “Beetlejuice Beetlejuice” activation on the platform by including a virtual Fandango box office where users could purchase real-life tickets to the movie.

Roblox has seen significant growth as a platform over the past few years, with fiscal year 2024 Q4 revenue hitting $1.36 billion, a 20.84% year-over-year increase, according to an earnings call. Despite its success, the platform has come under scrutiny for potentially deceptive marketing practices.

Ad budgets for games have grown for 40% of marketers, and in-game ad spend is expected to hit $11.49 billion by 2027, according to IAB data.