Roblox has announced that the company will be altering its policies, including a complete ban on all advertising targeted at users under 13.
The company also now defines advertising as anything in its metaverse designed to promote a product or service outside the Roblox ecosystem.
The extension of the definition of advertising means that the policy will now impact its brand partnerships and activations. Roblox had previously partnered with brands like Home Depot to create virtual experiences for kids.
- Roblox previously came under fire publicly after allowing Walmart to create branded experiences targeted at children, which was described in the media as "stealth marketing."
- Roblox has a unique challenge, with ~50% of the users on its platform currently under 13.
- Roblox is still developing an advertising platform and has been relying on deals with developers and content created by brands for advertising-related revenues.
