Roblox expands monetization with Google-powered rewarded ads

Roblox, the massively popular gaming platform with over 85 million daily active users, is taking a significant step forward in its monetization strategy. The company has officially partnered with Google to introduce Rewarded Video Ads, offering players in-game rewards in exchange for watching ads. This move not only opens new revenue streams for developers but also enhances advertising opportunities for brands looking to tap into Roblox’s vast and engaged Gen Z audience.

The introduction of Rewarded Video Ads is an expansion of Roblox’s immersive advertising efforts, which began with Video Billboards last year. These new ads will allow players to watch 30-second videos within the gaming environment to receive in-game perks, such as virtual currency or exclusive content. According to early tests conducted by Roblox, 80% of users watched the ads to completion, highlighting the effectiveness of this format.

By leveraging Google’s advertising technology, brands can now buy these ads programmatically through Google Ad Manager (GAM) and AdMob, streamlining the process for advertisers. Stephanie Latham, Roblox’s VP of Global Brand Partnerships and Advertising, emphasized the win-win nature of this approach, stating, “This new format benefits brands, creators, and users alike. Our collaboration with Google simplifies the ad-buying process and maximizes engagement at scale.”

Roblox’s deeper integration with Google’s ad ecosystem is a strategic move aimed at standardizing and scaling advertising across its platform. With access to GAM, advertisers can now seamlessly incorporate their existing video ad assets into the Roblox universe, making it easier for brands to reach audiences without creating entirely new content.

Scott Sheffer, Google’s VP of Sell-Side Monetization, underscored the importance of maintaining an immersive experience for players. “Gamers are deeply engaged in virtual worlds, so traditional ad formats don’t always work. Our goal is to integrate ads in a way that enhances the experience rather than disrupting it,” he explained. This aligns with Roblox’s approach to advertising, ensuring that ads blend naturally into gameplay rather than pulling players out of the experience.

While advertising has not been a major revenue driver for Roblox in the past, this partnership with Google signals a shift. The integration of rewarded ads is expected to provide a boost, allowing Roblox to tap into a larger pool of advertisers while keeping the experience engaging for players. Roblox CEO David Baszucki has projected that while advertising revenue will grow incrementally this year, it will not become a significant contributor to the company’s overall financial expansion until 2026 or 2027.

Beyond rewarded ads, Roblox is also exploring additional ad placements that mimic real-life billboards within its virtual environments. These immersive ad formats, currently being refined through Google’s technology, are designed to seamlessly integrate with gameplay, offering brands a more organic way to engage users.