Roblox partners with PubMatic to offer programmatic immersive video ads

In a bid to bolster its advertising revenue, Roblox has partnered with PubMatic, an advertising technology firm, to facilitate the rollout of new video ads slated for launch later this year, as revealed by the tech company on Wednesday.

Roblox, the immersive gaming platform, commenced trials of video ads in late 2023 as part of its ongoing endeavors to monetize its vast user base. Under this new initiative, creators of virtual realms within the gaming universe who opt to incorporate these ads into their experiences will receive a portion of the generated revenue, incentivizing participation and fostering a mutually beneficial ecosystem.

The strategic partnership with PubMatic holds the promise of expanding the reach of brands to Roblox’s extensive global community, boasting over 71 million daily active users. Notably, nearly half of these users represent the coveted Gen Z demographic, presenting an enticing opportunity for advertisers to engage with a youthful and digitally savvy audience.

“We are committed to making it easier for brands to foster connections with our highly engaged community on Roblox,” said Stephanie Latham, VP of global partnerships, Roblox. “Partnering with PubMatic unlocks the opportunity for more advertisers to seamlessly engage this community through preferred content formats, like video, while providing advertiser controls around brand suitability. The ad experience we offer on the platform is built to be immersive instead of disruptive, and true to the Roblox experience that our community of creators, users, and brands know and love.”

The introduction of immersive video ads on Roblox is currently undergoing alpha testing and is slated for wider availability to advertisers within the platform later this year. Advertisers will have various avenues to access Roblox’s video ad inventory, including programmatic guaranteed, private marketplaces (PMPs), auction package deals, and open exchange channels, ensuring robust accessibility while upholding stringent standards of control and brand suitability.

The partnership not only grants Roblox access to PubMatic’s extensive network of premium brand advertising demand but also facilitates supply path optimization deals with leading advertising agencies and premium brands. Moreover, PubMatic’s expertise spans across diverse advertising mediums, including connected TV, online video, mobile apps, and display, with a strategic foray into the burgeoning social and native advertising segments.

“We are thrilled to partner with Roblox to deliver a pioneering advertising solution that marries monetization with user experience,” said Kyle Dozeman, Chief Revenue Officer, Americas at PubMatic. “Advertising creates significant opportunities for many companies, and it funds and fuels the endless potential of the internet. We look forward to empowering Roblox to maintain full control over its advertising ecosystem while enabling advertisers to reach their target audiences effectively.”