Roblox bans crypto and NFT ads from its metaverse
Roblox, a widely recognized gaming metaverse, has recently revealed substantial modifications to its advertising approach, centering on age restrictions and the ban of crypto and NFT-based ads.
Concealing all ads for children
Roblox has become immensely popular among younger players during the 17 years of its existence. However, the game’s popularity has given rise to anxieties regarding age-appropriate content. Consequently, Roblox has updated its community standards, which will conceal all ads from users below 13 years of age.
The game has also introduced a sweeping prohibition on ads promoting NFTs and cryptocurrencies. Additionally, businesses related to online dating services, fortune-tellers, funeral services, and insect body parts have been incorporated into the “prohibited advertising” classification.
This move follows a complaint forwarded to the Federal Trade Commission (FTC) about Roblox’s underhanded advertising tactics targeted at children, prompting Roblox to address the matter.
Struggling with losses
Roblox has chosen to implement these modifications, recognizing the possibility of a decrease in ad revenue to guarantee that the game remains suitable for its mainly youthful player base. The corporation has already obtained a patent for a method that provides age-appropriate content recommendations, reducing the likelihood of adult content reaching younger players.
Although these changes may be challenging for the company to accept, they are necessary to improve the existing system. Roblox encountered a $900 million loss last year, but it has been gaining more players over the past few years. The game’s release on Xbox in 2015 was a momentous milestone in its mainstream success, bringing a massive influx of new players as the game proliferated on video-sharing platforms such as YouTube.
Despite the financial setbacks, Roblox has continued to work with popular franchises such as SpongeBob and Teenage Mutant Ninja Turtles to keep its players engaged and intrigued. The company has also shown interest in the web3 industry, launching a series of “limited items” that resemble NFTs.
Roblox has been making strides to create a safer and more suitable metaverse for its players. The recent alterations to its advertising model indicate the company’s dedication to providing a secure and age-appropriate experience for all users.