Roblox earnings: Why enticing brands is key to the future of the metaverse platform
Roblox’s advertising revenue is growing, though it remains relatively modest for now. Despite the company’s efforts to increase those revenues throughout the year, its leaders remained cautious when discussing advertising during Roblox’s Q3 2023 earnings call on Wednesday.
“While the actual ad revenue was pretty small, there is a vibrant economy around brands and the content that brands are publishing on the platform, and there is a virtual economy related to brands, and the virtual economy around brands is integrated into our virtual economy overall,” said Roblox CFO Mike Guthrie. “So, while the ad dollars themselves are small, they’re already contributing to the platform.”
Advertising came up repeatedly during yesterday’s earnings call, but Roblox executives were somewhat reticent on details regarding the rollout of programmatic ads on the platform, telling investors they would share more information on Roblox’s upcoming Investor Day event on November 15. Programmatic ads are currently in beta testing on Roblox, but the platform is rapidly approaching its self-imposed deadline to implement them as a full product by the end of 2023.
Still, it’s abundantly clear that Roblox hopes to convince more brands to spend inside the platform via both programmatic ads and bespoke branded experiences. To get a sense of Roblox’s brand ecosystem going into 2024, Digiday spoke to Joe Ferencz, the CEO of the leading Roblox studio Gamefam, for an annotated Q&A.
This conversation has been edited and condensed for length and clarity.
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