Roblox for Brands
Roblox is a global immersive platform where millions of people communicate and connect daily. Shaped largely by user-generated content, it offers brands a unique opportunity to engage with consumers online through a multitude of experiences. The platform’s allure lies in its powerful creation engine, cross-device accessibility, virtual economy powered by the platform’s own digital currency, Robux, and plethora of user-generated experiences, compelling its community members to average 2.4 hours per day on the platform.
By more than doubling its daily active users (DAU) since 2020,1 Roblox has emerged a explosive leader among metaverse platforms, attracting and retaining more people daily than most other recognized metaverse platforms.2,3
Sources:1. Roblox Corporation, 2. Fortnite DAUs, 3. Meta DAUs, 4. 2022 Metaverse Fashion Trends Report *As of Q1 2023
The Growth of Digital Goods
U.S. consumers now spend nearly twice as long consuming digital media (8 hours a day!) versus physical media.1 The convenience, efficiency and ubiquity of digital media has shifted the film, music, comic, magazine, and video game industries online, with 83% of video games now being sold as downloads instead of physical media.2 And, digital asset purchases don’t stop with media: in-game spending accounts for the biggest share of the video game market (having overtaken purchases of core video game media in 2020), and is projected to exceed $75B by 2025.3
Roblox is defined by its user-generated experiences, built in Roblox Studio, allowing creators and brands to deploy immersive experiences and digital assets in the marketplace.
While digitizing goods may be unfamiliar, partnering with a creator to publish digital goods for distribution on Roblox provides expanded opportunities for brand engagement. Cosmetic and function items like accessories and apparel are sold to enhance in-platform experience and immersion, and in some cases can be individually valued by users in the thousands of dollars when trading in the Roblox Marketplace!
Creators earn Robux, the in-game virtual currency, for creating engaging content and also when monetizing their experiences, fulfilling a positive cycle among creator, audience and platform. Digital assets have a life outside of Roblox too: brands like Forever 21 have tested clothing designs in Roblox and then manufactured the best selling item in real life, engaging their target demographic cross-domain.
Sources: 1. Statista, Time spent with digital vs. traditional media in the U.S., 2023, 2. Gitnux, Digital vs Physical Media Statistics, 2023, 3. Statista, Global In-Game Spending 2020-2025
Gaming Revenues and Growth
The global gaming industry is thriving, driven by revenues from both direct sales and in-game items, skyrocketing from revenues of roughly $71B to $201B in just 10 years1, marking an increase of 184%. Some estimates go as high as $384B globally2, when factoring in streaming, advertising, and e-sports. Now online gaming platforms are moving beyond games too, with many used for social networking, education, brand programming, live concerts, and more. For comparison, the gaming sector’s revenues3 are greater than those of Music4, Film5, Toys6, and Books7, and are on pace to catch up with Television8 and Sports9.
The Roblox community’s daily time on platform exceeds their time spent on Facebook, Instagram, and YouTube, combined10, positioning Roblox to establish culture-defining moments with the growing, diverse, and highly-social Gen-Z and Gen Alpha demographics. There have been over 100 brand activations on Roblox in the past year from enterprises seeking to stake a position in its digital economy. These long-term investments in consumer engagement require marketing and promotion, and Roblox has introduced Immersive Ads, including world-jumping portals, that charge advertisers on a per-teleport basis to funnel targeted traffic into their environments.11 Partnerships with livestreaming Roblox creators represents an immersive, omnichannel approach to presenting authentic brand content that goes beyond what is possible on gaming-focused platforms.
Sources:
- “Global Video Game Market Size 2023.” Statista, 2023, www.statista.com/statistics/246888/value-of-the-global-video-game-market/
- “Video Games Worldwide Revenue.” Statista, 2023 ,https://www.statista.com/outlook/dmo/digital-media/video-games/worldwide#revenue
- “Global Video Game Market Size 2023.” Statista, 2023 www.statista.com/statistics/246888/value-of-the-global-video-game-market/.
- “Global Music Industry – Statistics & Facts.” Statista, 2023, www.statista.com/topics/1385/music/.
- “Global Film Industry – Statistics & Facts.” Statista, 2023, www.statista.com/topics/964/film/.
- “Global Sports Market – Statistics & Facts.” Statista, 2023, www.statista.com/topics/3707/sports-market/.
- “Global Television Industry – Statistics & Facts.” Statista, 2023, www.statista.com/topics/1338/television-in-the-us/.
- “Global Toy Industry – Statistics & Facts.” Statista, 2023, www.statista.com/topics/1108/toy-industry/.
- “Global Book Industry – Statistics & Facts.” Statista, 2023, www.statista.com/topics/1177/book-market/.
- Sensor Tower, Q2, 2022, https://sensortower.com/blog/tiktok-power-user-curve
- WSJ, “Instead of Advertising in Video Games, These Companies Asked;’Why Not Make Our Own?”, 2023
The Opportunity for Brands
Enterprises have recognized the potential of Roblox and successfully launched activations on platform. Brands approach Roblox to engage users in the creation of original content or to sell limited-edition virtual merchandise that drive revenues while informing brands of user tastes and preferences. These rare assets, like digital purses and clothing, can serve as social signal of exclusivity among peers, enriching brand perception. In 2021, a digital Gucci purse in Roblox sold for $4,115, more than the cost of the physical version. Some brands have built interactive spaces and games to teach customers about their brand values. Others have encouraged users to connect in their virtual spaces, engaging them activities that deepen the brand’s association with a product category and lets consumers trial products before purchasing. Below are three examples of successful brand activations in Roblox:
Selling Rare Assets
Gucci created a virtual Gucci Garden experience, allowing users to explore and purchase digital versions of their products. Some of the best-selling accessories include digital purses. A Gucci purse on Roblox has sold for more than its IRL counterpart.
Teaching Brand Values
Chipotle hosted a virtual Halloween maze and a fun Burrito Builder, educating users about their food sourcing process. The 3D, customizable space was a unique and immersive space to host brand education experiences. For Chipotle, it was their biggest digital sales day ever, driven by 4.6B PR impressions and 50k+ social mentions.
Experiencing Product
Alo Yoga offers virtual meditations and yoga classes to users, promoting wellness and their brand simultaneously. Mindful breathing exercises form a powerful bond between the brand and its users, whether in the yoga studio or behind a screen, resulting in a 26% increase in purchase intent among users.
How Roblox can Work for Brands
User-Generated Content
Brands can leverage Roblox’s user-generated content model to engage users in unique, interactive experiences, fostering a deeper connection with the brand. Roblox creators often create worlds they then explore for audiences on streaming platforms, providing an entry for brand collaborations.
Virtual Merchandising
Brands can create digital versions of their products for purchase within the Roblox environment, providing a new revenue stream and promoting brand awareness, while helping fans express and identify themselves in-game.
Brand Experiences
Brands can use the platform to educate users about their products, services, or values in an engaging, interactive manner, raising awareness and increasing affinity. Modify your space over time with entertainment or promotions. Unlock utility for your community with a limited-time event or showcase, or build an always-on programmed community space.
Community Building
Roblox has a community-first mission that encourages user to generate content and engage. Brands can host events or create spaces within Roblox to support and grow existing communities, fostering brand loyalty, particularly among Gen-Z and Gen Alpha users, demographics with strong representation in Roblox.
Immersive Advertising
Use Roblox’s Immersive Ads products to drive discovery and traffic from creators and partners to your creations and experiences.
Where Roblox is Heading
Roblox’s mission to reach 1 billion DAU is not far-fetched, especially with its plans to expand in Asia, a region with a vast user base yet to be tapped. Nearly 22% of DAUs come from APAC today,1 and company has already taken steps towards this goal, including hiring a seasoned executive from Meta Platforms Inc. for the newly created role of Asia-Pacific head of public policy. This move signals Roblox’s commitment to understanding and navigating the unique regulatory and cultural landscape of the region to facilitate its growth.
The integration of metaverse and AR technologies, through novel devices such as the Apple Vision Pro, could further enhance user experiences, offering unique, immersive interactions that drive user growth. A new generation of headsets like the Vision Pro use advanced display and computing technologies to overlay realistic 3D objects atop the user’s physical space. This technology could be utilized to enjoy millions of interactive experiences on platforms like Roblox and others, further driving user engagement.
Developers are motivated to experiment with spatial computing platforms, as these new technologies support experiences otherwise unavailable through phones and tablets. Portals and e-commerce experiences like pop-up shops could attain another level of immersiveness as features in our living rooms. Developers tend to flock to growth and functionality; with its broadening demographics, existing culture of community and creator-led experiences, and VR/AR potential, Roblox is very appealing to developers and creators alike.
Digital environments that interact seamlessly with the physical
world offer the next level of immersion and potentially, next-level fun for consumers. We encourage brands to break the barriers of engagement and start building immersive experiences.
Source: 1. Statista, Global Roblox games DAU by region, 2023
Conclusion
Roblox presents a significant opportunity to engage with consumers in immersive digital environments, a core pillar of Vayner3’s definition of Web3.
With its impressive growth, profound community-first ethos and potential for enhanced experiences through AR and VR technologies, Roblox has become a leading platform for brands to deeply engage with communities at scale. We’re excited to share that VaynerX companies are now partners in the newly launched Roblox Partners Program to help brands strategize and activate experiences. As a partner, we’re focused on platform education, research and measurement, product innovation, and reimagining immersive advertising that returns value to Roblox users. We believe that brands who recognize and leverage Roblox’s potential will be at the forefront of the internet’s evolution into a more immersive, personalized, and ownable experience.
