Like it or not, the Internet age is fueled by advertising, and advertising is infiltrating increasingly unexpected forms of entertainment.
It all started with social media. Thanks to Facebook's tracking technology and the dominance of social media, advertisers have jumped at the chance to target ads based on what people are actually interested in and click on. Since then, streaming, once touted as an escape from ad-filled traditional TV, has shifted to free ad-supported and paid advertising slots to boost profitability, in part due to demand from Wall Street. I started paying attention.
Now, video games are joining the world of ubiquitous advertising, and Roblox announced this week that it will take a step forward by showing targeted video ads to millions of users by the end of the year.
Roblox's hugely popular digital platform allows approximately 71 million users per day to create their own worlds and games. The company is currently working on launching video ads on virtual billboards aimed at players 13 and older. Users playing games or walking around virtual worlds will encounter video ads just like they would in the real world.
But unlike in the real world, ads will be more targeted thanks to help from advertising technology company PubMatic. PubMatic partnered with Roblox this week to bring programmatic ad buying to video billboards.
Provided courtesy of Roblox
Roblox is betting it will stand out in a competitive advertising landscape because of its popular audience of young gamers and the ease with which advertisers add it as a channel through PubMatic.
“Roblox stands out as a platform for advertisers to reach engaged Gen Z audiences that are difficult to reach otherwise,” said Stephanie Latham, Roblox's Vice President of Global Partnerships. said in an email. luck. “We are excited to enable more brands to join this community seamlessly and at scale through the programmatic partners we have already purchased.”
The company has previously shown interest in building its own virtual worlds, including a Walmart-branded experience with free virtual clothing for gamers' avatars and a taco truck showcasing recipes that incorporate ingredients from the company's Great Value brand. We have worked with advertisers who have In 2023, it also introduced static image ads and “portal ads” that teleport users to brand-sponsored experiences.
Roblox hopes to increase its share of the video game advertising market, which is estimated to grow 13.4% this year to $8.5 billion, through targeted new video billboards. wall street journal The report cited data from eMarketer.
The increased advertising may be timely for Roblox, as the company's stock price has fallen 8% since the beginning of the year and a whopping 70% from its pandemic-fueled highs in November 2021. In December, one of our investors, Sahil Alvi, called out: Companies need to make changes to regain investor trust. The company is not making a profit.
Roblox's ad push is just the latest example of a new phase in advertising. Mobile marketing expert Eric Seufert says companies with their customer data are suddenly looking to leverage it in advertising, predicting that 2021 will see “everything become an ad network”. He said it has been proven to be accurate.
“These platforms recognize that they have valuable assets that they can't compete with what Facebook used to offer, but now they do,” Seufert said. luck.
Video game companies have recently faced a backlash from gamers angry about the growing financialization of video games, from paid loot boxes to expensive NFT in-game devices.
Still, Roblox's Latham said he has been testing video ads since last year and wanted to make sure they were “immersive and uninterrupted.” In adding more marketing content, she noted that video games are simply taking cues from the rest of her life.
“We recognize that advertising exists naturally in 3D immersive spaces, just like other parts of life where people interact with their favorite brands, and we want brands and creators to create innovative advertising products that people can enjoy. We are focused on creating solutions that can be launched on Roblox,” Latham said.
