New updates coming to e-commerce, video ads, social features and more.
Every year Roblox brings together creators from around the world for its developers conference RDC. The invite-only event includes executive keynote addresses with major announcements, panels with product leads and game developers, networking events, parties that go late into the night (Sawhorse, I'm looking at you) and the Roblox Innovation Awards ceremony.
This was my second year attending the event, which is a goldmine of valuable information. It’s also a place to get rare face to face time with past collaborators, current colleagues, Roblox staff members, readers of this blog and my LinkedIn followers.
Here are the top Roblox announcements that caught my attention at RDC...
E-commerce Integration with Shopify
What's Happening
Roblox announced plans to allow creators to sell physical products within their experiences, starting with an integration with Shopify early next year. This partnership will enable any eligible creator to sell any they are selling via Shopify, streamlining the process and making it easier for creators to monetize.
Why This Matters
Partnering with Shopify broadens the potential for a wider range of creators to sell unique physical goods on Roblox. This integration is especially beneficial for the many Roblox developers who already use Shopify to sell merchandise like t-shirts, stickers, and plushies. Selling directly within Roblox eliminates the need to direct buyers to a separate website, simplifying the process for both creators and shoppers.
Shopify won't be the only commerce platform on Roblox. Walmart and Fandango have already launched e-commerce on Roblox. Walmart has partnered with Roblox UGC creators to sell physical items with companion digital twins, while Fandango sold tickets to the Warner Bros. movie Beetlejuice Beetlejuice. Both projects were developed by Sawhorse, and I had the privilege of working on them.
Key Questions
How much will Roblox earn from these sales?
Is Roblox effectively becoming an affiliate of Shopify?
Premium Game Pricing with Higher Revenue Share
What's Happening
Roblox is introducing a new pricing model for premium games. The revenue share will be 50% for experiences priced at $9.99, 60% at $29.99, and 70% at $49.99. All payments will be made in real fiat currency, with the rollout beginning on desktop later this year.
Why This Matters
This change is significant for developers’ monetization strategies. Currently, most Roblox developers earn between 20% and 30% of revenue from in-experience sales. By incentivizing premium offerings, Roblox encourages developers to create high-quality games worth paying for. This new model could also attract traditional gaming companies to explore Roblox as a platform, making the economics more appealing for those looking to expand their reach.
Key Questions
Will traditional gaming titles make the jump to Roblox with these more favorable economics?
Will existing Roblox developers look to cash in on this opportunity?
Party Functionality to Boost Social Activity
What's Happening
Roblox is introducing new Party features that will allow users to hop into experiences together and connect via voice and text chat both inside and outside of experiences. Developers will have access to a Party API to expand party functionality, such as teleporting members to the same starting point, placing them in private lobbies, or pre-pairing them into teams.
Why This Matters
Playing Roblox games with friends can be challenging due to communication issues and difficulties joining the same game server. These new Party features will streamline the process, reducing friction and making it easier for groups to play together. For developers, leveraging Party features could significantly boost engagement.
As Roblox CEO Dave Baszucki said, “I’ve wanted this for 16 years.”
Key Questions
When will this roll out to developers?
Which types of games will benefit the most from this?
What are the most effective ways to implement and incentivize Party usage?
Posting Screenshot Stills and Creating Video Highlights
What's Happening
Roblox introduced new content creation tools that allow users to post still images of gameplay screenshots and create highlight video clips. These tools are designed to increase engagement and content sharing among the Roblox community, providing more ways for users to showcase the experiences they're enjoying.
Why This Matters
Roblox is already seeing its content shared across YouTube, TikTok and Twitter. Instead of losing that engagement, this is an opportunity to keep that engagement within their ecosystem. And perhaps this may even drive up Roblox's 2.5 avg time spent per DAU even higher.
Key Questions
Will more users become creators, and will those users spend more time creating content on Roblox?
Will this new content turn Roblox into even more of a social media platform?
Roblox Video Ads Evolution
What's Happening
Roblox is placing a new emphasis on rewarded video ads, with 87% of users expressing a favorable opinion of this format. Roblox plans to offer more options for when and where ads can be triggered, such as from menus or in-experience stores. The ads will play as overlays, giving developers control over how to incorporate them and offer rewards.
Why This Matters
Roblox is fully embracing video ads because they align with what advertisers are accustomed to buying. Unlike static video billboards, these new ads integrate into gameplay, offering a more seamless experience for players and a potentially lucrative revenue stream for developers.
Key Questions
Will more developers embrace this new iteration of video ads?
Will this entice more brands jump onto the platform to reach its 79.5M DAUs?
Roblox Partner Program Expansion
What's Happening
Roblox announced an expansion of its Partner Program, aimed at empowering developers who want to work with brands and communities. This move underscores Roblox's commitment to supporting developers, media buyers, and agencies that can help the platform grow its brand partnerships.
Why This Matters
As Roblox continues to evolve as an advertising platform, bringing more partners on board to educate and serve the market is crucial for its growth. Those interested in joining the Partner Program can learn more and find out how to apply here.
Special Request of Roblox
New Partner Program members will be announced in January, 2025. My guess is that this will take place at CES in Las Vegas.
If anyone from the Roblox Brand Partnerships team is reading this, I have a special request of you. I'd love to be there (at CES?) when you make this announcement in order to meet your new partners and help get the word out. An invite would be must appreciated. Thanks for considering.
Key Question
Will an expanded Partner Program accelerate brand adoption in the market?
Creator Affiliate Program Introduction
What's Happening
Roblox is expanding its Creator Affiliate Program, which will reward developers for bringing new users to the platform. Developers can set up unique links for their experiences, and if users sign up and purchase Robux, the developer will earn a share of the revenue generated within the first six months.
Why This Matters
This program is similar to the Video Stars program, which rewards select influencers for promoting Roblox and driving sales of Robux. As Roblox pursues its goal of reaching 1 billion users, expanding its affiliate program is a strategic move toward achieving that ambition.
Key Questions
Will existing Roblox creators be able to attract new players to the platform who have never been on Roblox? Or is too much of their audience already on the platform?
Transition from Groups to Communities
What's Happening
Roblox is transitioning the name of Groups to Communities, introducing forums as dedicated spaces for users to share feedback. This change reflects Roblox's evolution into more of a social network, fostering meaningful conversations and enhancing group dynamics.
Why This Matters
Groups have long been an underutilized part of the Roblox ecosystem, with basic message boards and limited functionality. The shift to Communities signals that Roblox is investing in the future of these social spaces, offering greater support and potential for growth.
Key Questions:
Will Communities boost acquisition or retention in experiences?
What will the new best practices be for Communities?
Will analytics be available for Communities?
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What Do You Think?
Which of these announcements do you find most interesting? Leave me a comment on LinkedIn.
Stephen Dypiangco is a consultant that helps brands reach new audiences via Roblox.
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