Roblox Corp
While a significant portion of Roblox's player base is still under 16, the company has said that its quickest growing demographic seems to be older players. Part of that growth seems to be the greater attention the game platform received during the COVID-19 pandemic, though a sizable portion of that growth also comes from Roblox's existing players growing older.
The company plans to lean into this demographic shift by introducing changes to its platform such as age-restricted content for older players (though Roblox has explicitly stated no "r" rated content would be allowed on its platform). Roblox also plans to introduce more social features, such as expressive avatars and animated chat functionality that animates a player's virtual persona using their camera. The company previously announced a graphical overhaul to its platform, which would take its cartoonishly blocky avatars in a more realistic direction, likely helping make it more attractive to older players.
The company is also adding to its developer fund, which it uses to support the user-driven development of new content for its platform. The $10 million boost seems to fall short of what is necessary to address a major problem that faces the platform: lackluster earnings for many indie developers. While some top developers for Roblox can net around $30,000 or so a year in earnings, many creators, especially younger developers getting their start in the industry, are barely able to make a profit, if they make money at all.
Immersive Advertising "Experiences" Coming Soon to Roblox
Pivoting towards greater in-game advertising is likely a response to the company's declining returns on virtual currencies, which have remained lackluster for the past two quarters. Advertising and branded content isn't exactly new to Roblox, however.
Previously, branded content had been something of a norm for the popular gaming platform. Virtual experiences included things like "Gucci Town"
Roblox seems to be taking this model to a new level with the introduction of virtual billboards and branded "experiences" like those done in the past.
The company showed off virtual "portals" to branded virtual spaces, such as a digital skate park sponsored by popular clothing brand Vans.
Roblox's sponsored content has been the subject of scrutiny in the past, with the group Truth in Advertising filing a complaint with the Federal Trade Commission (FTC) last year that noted how branded content in Roblox wasn't adequately labeled, making it difficult for players to know it was sponsored. Roblox has stated that its new branded content will only be accessible to players 13 or older.
