REDWOOD CITY, Calif. - PubMatic (NASDAQ:PUBM), a digital advertising technology firm, has announced a new partnership with Roblox (NYSE:RBLX), the global online platform known for its immersive virtual experiences. This collaboration, set to launch later in the year, aims to facilitate programmatic media buying for Roblox's video advertising inventory.
The partnership is poised to connect brands with Roblox's daily active user base, which exceeds 71 million, nearly half of whom are part of the sought-after Gen Z demographic. Roblox, which has been a hub for creativity and community since 2006, will offer brands a streamlined way to engage with their users without the need to create custom content.
Roblox's advertising strategy is designed to be non-intrusive and compliant with the platform's Community Standards and Advertising Standards, focusing on user privacy and transparent advertising. Ads will be marked and will only be served to users aged 13 and above.
Stephanie Latham, VP of global partnerships at Roblox, emphasized the commitment to facilitating brand connections within the platform's community. Kyle Dozeman, Chief Revenue Officer, Americas at PubMatic, expressed excitement about the partnership, highlighting the importance of advertising in supporting the internet's potential.
The video ads, currently in alpha testing, will be available through various programmatic channels, including guaranteed deals, private marketplaces, auction packages, and open exchanges. This will allow Roblox to leverage PubMatic's extensive demand network while maintaining control over its ad ecosystem.
PubMatic's expansion into social and native advertising segments complements its existing strengths in connected TV, online video, mobile app, and display advertising.
The information for this article is based on a press release statement from PubMatic.
InvestingPro Insights
PubMatic's (NASDAQ:PUBM) strategic move to partner with Roblox (NYSE:RBLX) could be a significant step in tapping into the lucrative Gen Z demographic. For investors following PubMatic's financial journey, InvestingPro offers some key insights that may influence the company's future performance.
One of the notable InvestingPro Tips is that PubMatic holds more cash than debt on its balance sheet, which suggests a strong financial position that could support further strategic partnerships and investments. Additionally, the company is expected to see net income growth this year, indicating potential for increased profitability alongside its latest business ventures.
From the real-time data provided by InvestingPro, PubMatic has a market capitalization of 1.18 billion USD. Despite a high P/E ratio of 137.15, which reflects investor optimism about future earnings potential, the company's revenue has shown growth over the last twelve months, with a 4.15% increase. Moreover, the stock has experienced a strong return over the last year with a 68.06% price total return, highlighting investor confidence in the company's performance.
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