Roblox to take revenue share from game sponsorships in policy overhaul

Investing.com -- Roblox Corp. will take a share of revenue from sponsorships in its games as part of a major overhaul of its advertising policies.

Starting May 4, the company will update its guidelines to provide more clarity around what constitutes an ad on the platform, according to a memo Roblox shared. Content will be identified as an ad if it involves compensation from a brand or promotes an off-platform product.

Certain categories of ads, such as pharmaceuticals and financial services, will not be allowed to be shown to players under age 13. Players in this age group will also not be allowed to participate in advertising formats that offer rewards for playing or watching.

Roblox said that by standardizing policies, pricing, and measurement, the platform can become more accessible to brands, helping them invest at higher levels with more success.

Boosting advertising revenue has been a goal of Roblox's for more than four years. Executives have described video ads, billboards and branded items and games as a potential revenue-generator for both the company and game developers. Some third-party developers have earned hundreds of thousands of dollars designing branded items for games.

In January, Roblox plans to start taking a share of revenue from sponsorships in games. The company is still working on the details and plans to share more later in the second quarter.

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