Roblox will take a revenue share from game sponsorships, with a major adjustment to advertising policies

Investing.com – Roblox Corp. will start sharing revenue from in-game sponsorship activities as part of a major update to its advertising policy.

According to a memo shared by Roblox, starting May 4th, the company will update its guidelines to better define what constitutes advertising on the platform. Content involving paid brand promotions or external product endorsements will be identified as advertising.

Certain categories of ads, such as pharmaceuticals and financial services, will not be allowed to be shown to players under 13. Players in this age group will also be restricted from participating in ads that offer in-game rewards or viewing rewards.

Roblox stated that by standardizing policies, pricing, and measurement standards, the platform can make it easier for brands to connect, helping them invest at higher levels and achieve greater success.

Increasing ad revenue has been a goal for Roblox for over four years. Company executives have previously described video ads, billboards, and branded merchandise and games as potential revenue sources for the company and game developers. Some third-party developers have earned hundreds of thousands of dollars by designing branded merchandise for their games.

Starting in January, Roblox plans to begin sharing revenue from in-game sponsorship activities. The company is still working out the details and plans to share more information later in the second quarter.

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