Roblox Corporation (RBLX) shares surged 5.01% in pre-market trading on Tuesday, following the company's announcement of a new video advertising format and a partnership with Google to boost its advertising business.

The gaming platform giant unveiled a new rewarded video ad format, allowing players to watch advertisements up to 30 seconds long in exchange for in-game benefits such as boosts, lifelines, or resources. This move is expected to create a win-win situation for both players and advertisers, potentially increasing user engagement and opening up new revenue streams for Roblox.

In a significant development, Roblox has partnered with Google to make its advertising offerings more accessible to a broader range of advertisers. Brands and agencies will soon be able to purchase these new ad formats either directly through Roblox or via Google's ad platform. This collaboration is seen as a strategic move to leverage Roblox's large Gen Z user base, with the company reporting 85.3 million daily active users as of the last quarter of 2024. The partnership with Google, coupled with Roblox's existing collaborations with data measurement firms like Cint, DoubleVerify, and Nielsen, is expected to enhance the platform's appeal to marketers seeking a large, engaged audience.