Roblox Corporation (RBLX) shares jumped 5.01% in pre-market trading on Tuesday, following the company's announcement of a new video advertising format and a strategic partnership with Google to boost its advertising business.
The gaming platform giant unveiled a new rewarded video ad format, allowing gamers to watch advertisements up to 30 seconds long in exchange for in-game benefits such as boosts, lifelines, or resources. This move is set to expand Roblox's advertising offerings and appeal to a wider range of marketers. Additionally, Roblox announced a partnership with Google, enabling brands and agencies to purchase these new ad formats through Google's ad platform in the coming weeks.
This development is seen as a significant step for Roblox in diversifying its revenue streams and capitalizing on its large Gen Z user base. With 85.3 million daily active users as of the last quarter, the majority being over 13 years old, Roblox is positioning itself as an attractive option for advertisers seeking to reach a young, engaged audience. The market's positive reaction reflects investor confidence in Roblox's strategy to expand beyond its core gaming business and tap into the lucrative digital advertising market.
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