Advertisement
New Zealand markets close in 1 hour 40 minutes
  • NZX 50

    11,739.14
    +6.86 (+0.06%)
     
  • NZD/USD

    0.6117
    +0.0020 (+0.33%)
     
  • NZD/EUR

    0.5641
    +0.0013 (+0.24%)
     
  • ALL ORDS

    8,076.60
    -41.70 (-0.51%)
     
  • ASX 200

    7,804.60
    -43.50 (-0.55%)
     
  • OIL

    77.06
    -0.51 (-0.66%)
     
  • GOLD

    2,373.40
    -19.50 (-0.81%)
     
  • NASDAQ

    18,705.20
    -8.59 (-0.05%)
     
  • FTSE

    8,370.33
    -46.12 (-0.55%)
     
  • Dow Jones

    39,671.04
    -201.95 (-0.51%)
     
  • DAX

    18,680.20
    -46.56 (-0.25%)
     
  • Hang Seng

    18,939.78
    -255.82 (-1.33%)
     
  • NIKKEI 225

    38,913.48
    +296.38 (+0.77%)
     
  • NZD/JPY

    95.8600
    +0.3570 (+0.37%)
     

Roblox partners with PubMatic to boost video ad sales

Gaming platform Roblox (RBLX) has announced a strategic partnership with digital advertising technology company PubMatic (PUBM). The goal of this collaboration is to help Roblox boost its video ad sales, diversifying its revenue streams beyond the current model of virtual currency sales on the game.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Angel Smith

Video transcript

JOSH LIPTON: Shares of Roblox after the announcement of its partnership with pubmatic. So Roblox course went public a few years ago, monetizes mostly from sales of virtual currencies that the kids use to buy all that stuff in game jewelry stuff like outfits for avatars. But now Roblox is sounds ramping up its push to attract ad dollars. So that was the news today is tapped adtech firm pubmatic to. It sounds help with sales of video ads on the platform and also has reportedly hired ad industry veterans to from meta x and the like.

ADVERTISEMENT

JULIE HYMAN: Yeah. It's unclear why pubmatic is trading lower by the way on this news. One would think and it was initially trading higher when this report first surfaced in the Wall Street Journal. But now has turned lower. But in terms of Roblox, it has this customer base. And by the way, it sounds like the ads are not going to be served to their youngest players. It's just a certain cohort. But you've got this whole big player base that is not tapped by advertising. I guess there had been some speculation about whether Roblox was going to try to develop its own ad platform in house.

But it sounds like it's not doing that for now. But it doesn't make money. Roblox doesn't so maybe this is a potential way for it to--

JOSH LIPTON: Lever to pull. I mean, sometimes you forget just how popular that platform is.

JULIE HYMAN: I don't forget.

JOSH LIPTON: Average is more than 71 million daily users.

JULIE HYMAN: Yeah.

JOSH LIPTON: That's a lot of fans.

JULIE HYMAN: Yeah. Although the pendulum has swung a little bit Fortnite in my house.

JOSH LIPTON: Has it?

JULIE HYMAN: For the moment. I think it's still both, unfortunately, there's a lot of time spent in front of screens. But anyway that's another story.