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The driving force of Roblox has been its community of players and creators. Now the platform is evolving into an innovative marketing channel, unveiling new economic opportunities

Roblox has been the latest big thing for immersive platforms in the last couple of years. Every day, millions of people use Roblox to create, play, work, learn, and connect with each other in experiences built by a global community of creators.

Roblox stands as a gaming platform offering the opportunity to engage in numerous user-created games or craft one's own using Roblox Studio. Notably, Roblox boasts a significant social media dimension, facilitating the forging of friendships, conversations with developers behind diverse user-created games, and collaborative endeavors in game creation.

Roblox's own mission is to establish a human co-experience platform that facilitates the convergence of billions of users for play, learn and communicate.  But that’s not it. Roblox aims to strengthen the social fabric of its community and support economic growth for people and businesses around the world. And its growth strategy seems capable of delivering!

A growing platform that is making fast progress

David Baszucki, founder and CEO of Roblox at the Roblox Developers Conference 2023 via

David Baszucki, founder and CEO of Roblox at the Roblox Developers Conference 2023 via

Roblox allows users to develop games and play games created by other users in every version you can think of: mobile, desktop, console and VR sets. The platform hosts user-created games of multiple genres, coded in the programming language Lua. For most of its history, Roblox was relatively small, both as a platform and as a company.

Fueled by a global community of developers, the platform today stands as one of the premier online entertainment hubs for young audiences, gauged by average monthly visits and time spent, with a user base primarily comprising Gen Z consumers (60% under 17).

The recent growth experienced by Roblox is impressive, reflected in the growing results published for the third quarter of 2023:

  • Average Daily Active Users (“DAUs”) were 70.2 million, up 20% year-over-year.

  • Average monthly unique payers were 14.7 million, up 14% year-over-year, and average bookings per monthly unique payer was $19.02, up 5% year-over-year.

  • Hours engaged were 16.0 billion, up 20% year-over-year.

  • Average bookings per DAU was $11.96, flat year-over-year.

  • Revenue was $713.2 million, up 38% year-over-year.

  • Bookings were $839.5 million, up 20% year-over-year.

Roblox results of Q3 2023

Roblox results of Q3 2023 via

“Our strong third quarter results reflect our continued platform innovation and growth across all age groups and geographies. We are executing against our key priorities to enable deeper forms of immersion, communication and Avatar expression on the platform, while investing in artificial intelligence, brands and advertising, to drive future growth

David Baszucki commenting Roblox’s Financial, Operational and Liquidity Highlights

Integrating real and virtual economics

Roblox Earning-Flowchart

Roblox Earning-Flowchart via

Roblox is free to play, with in-game purchases available through a virtual currency called Robux. The driving force behind Roblox's economy has been its creators. Through their ingenuity, the platform's economic landscape has evolved into a vibrant and dynamic entity, with a GDP in 2022 rivaling that of numerous small countries.

For the most devoted Roblox enthusiasts, a subscription-based premium membership is available. In addition to receiving a monthly Robux allowance ranging from $5 to $20, members enjoy exclusive perks, including access to unique avatar shop items, the ability to engage in trading with fellow players, a 10% enhancement on additional Robux purchases, and various other privileges.

Each day, visitors from 180 countries engage in immersive experiences, positioning Roblox as one of the most substantial virtual economies on the planet. Roblox offers numerous avenues for creators to earn, from crafting virtual goods to developing captivating experiences

And many new opportunities are coming

This robust ecosystem translates into significant economic opportunities for the community. In 2022, creators earned $624 million, with an additional $182 million in the first quarter of the following year. Virtual transactions exceeded 3.2 billion in 2022, with an additional 900 million during the first quarter of 2023. Notably, the top ten highest-earning creators averaged $23 million each in earnings, and even creators within the top 500 earned a minimum of $140,000.

This thriving ecosystem has been integral since Roblox's inception, with the ongoing objective of making it a hub where economic opportunities flourish. Substantial progress has been made towards this goal, and the journey is just beginning. As Roblox moves forward, its vision encompasses a platform where everyone can be a participant—buyer, creator, seller, curator, or IP owner.

Roblox economic flywheel

Roblox economic flywheel

Roblox economic flywheel via

The driving force behind Roblox's economic momentum is participation, operating as a dynamic force propelling the economic flywheel. The cycle begins with more creators generating diverse content, which users discover and purchase, thereby creating additional opportunities for creators. This, in turn, sparks increased interest in buying creations and spending more time on Roblox.

A significant portion of this engagement occurs on the Marketplace, where users bought 1.8 billion avatar items in 2022. Approximately 40% of monthly active users visit the Marketplace each month to update their avatars. Recent enhancements focus on improving the consumer experience and empowering creators to express themselves effectively.

In 2021 and 2022, the creator community earned $538 million and $624 million, respectively, representing a remarkable 164% growth over two years. The anticipated figure for 2023 alone is approximately $800 million.

New possibilities to reward creators

Estimated utilization of each dollar spent in an experience on Roblox

Estimated utilization of each dollar spent in an experience on Roblox via

A substantial part of spending on Roblox directly benefits developers, with an average of 76% of all spending in experiences supporting or going to developers. The breakdown includes 47% to cover costs supporting experiences, 29% directly returned to developers, and 24% for Roblox's ongoing services, operating costs, future investments, and margins.

Looking ahead, Roblox is building a platform to democratize creation, enabling anyone to be a creator without specialized software knowledge. By providing in-experience creation tools, the platform aims to expand its community of creators and offer more opportunities.

Diverse monetization methods, such as in-experience purchases, Engagement-Based Payouts, virtual item creation and sales, and affiliate programs, empower creators to choose the approach that suits them best. The recent introduction of the Immersive Ads system allows brands to connect with users without compromising the user experience, offering additional revenue streams for developers.

Roblox also envisions further expansion with the introduction of subscriptions within experiences, fostering recurring economic relationships between developers and users. The goal is to ensure a steady flow of relevant content while increasing the predictability of earnings.

As Roblox expands, brands are exploring new possibilities

Top ten Roblox Branded Games november 2023

Top ten of Roblox Branded Games November 2023

The majority of brands currently involved in Roblox are leveraging the platform as a marketing channel to connect with Generation Z consumers. The typical branded experience captures an average engagement time of 11 minutes from Generation Z users. Additionally, these branded experiences have collectively garnered an impressive 1.8 billion visits during the initial three quarters of 2023.

An examination of the November 2023 Top 10 of Roblox Brand Games, reveals numerous brands that stand to gain significantly from this evolution. For instance, Barbie has the opportunity to boost toy sales, Sonic can enhance video game sales, Warrior Cats can promote book sales, Walmart and Amazon can increase the sales of pretty much everything. This underscores the potential for various brands to capitalize on the platform and amplify their reach across different product categories.

Whether they are introducing User-Generated Content (UGC) items in the marketplace, seamlessly integrating into established games, or creating bespoke experiences, an increasing number of brands are turning to Roblox as a means to raise awareness and foster engagement with the younger audience on the platform.

Incorporating Video Ads in an immersive experience

Adv display on Roblox

Adv Display on Roblox via

Brands don't need to build a Roblox experience to advertise on its platform. Roblox recently broke new ground by enabling brands to run Video Ads within the platform, compensating creators and rewarding players for their viewership — a feature not found in platforms like Fortnite, which relies solely on branded experiences in the creative mode.

Currently, brands have the option to purchase in-game display placements without the necessity of crafting a virtual experience within the platform. However, starting from 2024, they also have the opportunity to acquire in-game video placements. The strategic goal now is for Roblox to establish an advertising business that can contribute to the ongoing growth of the company.

Key details about the new Video Ads format include:

  • Videos limited to a maximum of 15 seconds.

  • Video Ads accessible only to players aged 13 and above.

  • Creators receive compensation for incorporating Video Ads into their experiences.

  • Video plays after the user views the ad for at least 0.5 seconds, indicating intent.

  • Videos play muted by default, unless the user unmutes or opens it in full screen.

  • Publishers can earn through a 2-second video view or a full 15-second view.

  • Players can be rewarded for watching ads in full for 15 seconds.

An immersive e-commerce is on its way?

Brands want to be part of the Roblox community

Brands want to be part of the Roblox community

The other big announcement is Roblox's forthcoming introduction of a "real-world e-commerce" in the upcoming years. Previously thriving in a self-contained ecosystem, the Roblox economy is set to expand by connecting experiences to external websites and e-commerce platforms to make real world purchases directly from its Marketplace.

In a Tech Talks podcast episode from October 2022, CEO Dave Baszucki and Chief Partnerships Officer Christina Wootton, explored this concept. Dave shared his vision of a future where users attending a virtual concert on Roblox could not just purchase an avatar outfit but also have a physical version delivered to their doorstep.

Roblox stands poised to shape future consumer preferences and purchasing habits. As the platform evolves, external website links are a precursor to integrated, immersive shopping experiences, promising enhanced shopping convenience, increased GDP, and the introduction of innovative retail concepts.

Consumer brands are already flocking to the Roblox platform for attention, and as commerce becomes seamlessly integrated, they are likely to establish a more permanent presence. From brand activations to immersive online stores, Roblox is at the forefront of this transformative shift in the digital landscape!



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