March 20 (Reuters) - Videogame platform Roblox said on Friday it would take a portion of revenue from in-game brand deals starting next year, as part of a broader advertising-policy overhaul designed
Roblox Overhauls Advertising Policies, Launches Revenue Sharing Model by 2027
Roblox's New Advertising Policy and Revenue Sharing Model
Introduction to Roblox's Policy Changes
March 20 (Reuters) - Videogame platform Roblox said on Friday it would take a portion of revenue from in-game brand deals starting next year, as part of a broader advertising-policy overhaul designed to draw in more brand dollars and increase creator earnings.
The company has been expanding beyond gaming to transform its platform into a hub for e-commerce, socializing and advertising, and had announced a new ad format and a partnership with Google last year to grow its nascent ad business.
Details of the Revenue Sharing Model
Implementation Timeline and Objectives
The revenue share, effective January 2027, aims to end what Roblox called a "race to the bottom" on pricing caused by a lack of standardized measurement and price transparency, according to a post on its developer forum on Friday.
Benefits for Brands and Creators
"A revenue share that scales like media will help brands report, measure and value advertising integrations in a similar way to other scaled media formats on other platforms. Today, the flat fee deal structures leave creators earning less, not more," Roblox said.
It is still finalizing details with creators and would share more in the second quarter.
Advertising Policy Overhaul
Introduction of Age-Appropriate Advertising Formats
The company also said starting May 4, age-appropriate advertising formats would be permitted on its platform.
Definition and Moderation of Advertising Content
"Content will now be classified as an ad if it involves compensation from a brand to feature within a creator's experience, or if it promotes off-platform products," it said.
Registration and Moderation Requirements
Under the framework, creators will be required to register all advertising integrations with Roblox before campaigns go live, and submit assets for moderation. It will also introduce new advertising labels applied directly in its Studio tool, allowing users to report unwanted ads.
Restrictions for Younger Users
Roblox said rewarded advertising formats and certain brand categories, including food, cosmetics, pharmaceuticals and financial services, would be prohibited for users under the age of 13.
(Reporting by Juby Babu in Mexico City; Editing by Shilpi Majumdar)
