How does the metaverse fit into advertising? Roblox managed to emerge from a difficult year in a relatively healthy position, but much of the hype around the “metaverse” has cooled significantly among investors and advertisers. And with the ad market in uncertain territory, interest may not pick back up anytime soon.
- Metaverse projects from major companies like Meta and Microsoft have been put on the backburner to repair leaks elsewhere in the business or invest in buzzier technologies like artificial intelligence. For now, Roblox and rival Fortnite remain the two dominant “metaverse” platforms.
- While there are examples of extremely successful brand activations across both (like Roblox’s Spotify Island), the pace of new campaigns has slowed dramatically thanks to rising interest rates and technological barriers that make advertisers hesitant.
- The main factor drawing brands to Roblox is the access to a highly engaged, young user base—something unique that it could lose as it shifts focus to a broader player base. For brands seeking inroads with the next generation of consumers, it’s an indispensable platform, but one that’s hard to break into.
Our take: Roblox may have performed well in Q4, but its (and the metaverse’s) place in the advertising world is more uncertain than ever. Though optimism is picking up about the ad industry’s outlook, shifts in loyalty mean that launching a costly one-time Roblox activation may be far down on advertisers’ list of priorities.