Roblox is expanding its advertising network, aiming to transform from a gaming hub into a full-service digital platform similar to Facebook or Amazon. The platform now allows advertisers to purchase digital ads in static, video, and Portal form, targeting specific demographic and geographic groups across its tens of millions of daily active users. This move is particularly appealing to marketers aiming to reach Gen Z and gamers, as Roblox's power users are often children or teens aging into the 18-to-34-year-old demographic. The company's daily active user count of over-13 players grew by 22% between Q1 2023 and Q1 2024.
However, Roblox's young audience presents challenges, particularly around child safety. The company has faced criticism for advertising to under-13 users, and the wider rollout of digital ads could attract more scrutiny. This comes during a time of increased government focus on child safety in the digital landscape, including on platforms like TikTok and other gaming platforms.
Despite these concerns, Roblox has taken a cautious approach to its ad rollout, conducting extensive beta tests and currently only serving ads to users aged 13 or older. To extend its advertising to under-13 users, Roblox would need to update its privacy policy to comply with the Children’s Online Privacy Protection Act, which requires parental consent to collect data from under-13 users. Roblox's current privacy policy specifies that its ads only target users aged 13 or older.
As Roblox expands its advertising offerings, it must balance the interests of brands, users, and potential regulators. The company aims to ensure that ads on the platform are safe, immersive, and non-interruptive to the user experience.
