The ROI of Roblox: How Brands Can Leverage this Powerful Platform

Roblox is a powerful tool for brands: we show you how.

Fashion Brands are underleveraging Roblox as it overtakes fashion and music discovery.

Context: Why Roblox Matters

Why Brands Should Leverage Roblox

Imagine this: its London Fashion Week and Burberry is about to preview their collection at a major fashion show.  As people gather in the venue to see the collection live, players are gathering in your virtual tent in the Dress to Impress game. The collection is the same as your runway show - only this time, it’s digital. Players can use this for gameplay, or collect the limited-edition digital items.  Special guests - celebrities and models - appear to also play the game alongside Twitch streamers. 

That’s just the beginning of branded opportunities on the platform: but why aren’t they there?

Today, 3.4 billion people regularly play games, generating $180 billion dollar in content revenue every year. Gen Alpha is the fastest growing segment of global gamers.

Imagine a Sephora takeover of the beauty space in Dress to Impress..

Roblox is the world’s biggest game, yet despite the breakout success of games like Dress to Impress, in-game branded experiences are surprisingly few.

Gen Alpha is the world’s largest and youngest generation, and this is their largest platform. They are not only players, but also platform creators. The last 12 months through June this year that Roblox Creator Community earned over $800 million which represents an increase of almost 20% over 2023.

Dress to impress is where pop culture, fashion and gaming intersect; why are brands missing out? 

In 2022, Roblox’s users designed 170,000 virtual clothing/accessory items and 15,000 virtual worlds each day and average daily users have grown 40%. Today’s users are also older, with more disposable income: some 53% are above 13 years old (including your authors).

Most brands are missing out on a great opportunity to build trust and relationship with the growing audience on Roblox because this is where pop culture, fashion, and gaming intersect. 

At its core, Roblox a game with a deep, social element. It’s not the same as social media but it is the next form of social media.

For Gen Alpha, Roblox is the new Instagram.

As an emerging social platform, Roblox today has 4m daily active players use the voice on the platform and soon, it will be used for messaging, shopping, entertainment learning and play.

The ROI of Roblox

Five Ways Roblox Drives ROI for Brands

The monetary incentive for brands to enter Roblox is to unlock new revenue streams through in-game purchases and exclusive digital items. But being on Roblox opens a broader opportunity set. Here are five ways being on Roblox adds value for brands:

• Access Gen Z, Alpha:

  Gen Alpha is the largest and youngest generation in the world, and the platform reaches 58% of players are over 13 years old, a segment that is growing 26% annually.

• Speed to Market:

  Fast fashion: Launch your digital collections as the same time the collection hits the fashion runways - to a big, influential audience.  Fail fast: Brands can also test new styles quickly.

• Loyalty:

  Roblox has both an audience and a marketplace. Most platforms that sell digital collectibles (like Opensea or Sandbox) can’t be worn. Roblox provides players with a place to show off their goods.

• Experiential Marketing:

  A branded space that is fun and truly engaging rather than large, bland and sprawling. Create authentic gameplay and include hints or storytelling, elevated visuals to attract, engage, retain and encourage repeat visits.

• Powerful Partnerships:

  Combining the popular success with a game like Dress to Impress with a brand’s designer IP can lead to a powerful partnership. Brands can host in-game events simultaneously as major physical events, such as London Fashion Week or New York Fashion Week.

Brands like Walmart, Elf Cosmetics, Fandango and Warner Brothers started testing Commerce on Roblox for users 13 and older. Players not only discovered clothing and beauty products in these experiences and with a few simple clicks these items showed up at their doorsteps.

The Takeaway

Gaming isn’t an obvious play for luxury brands - but neither was the internet, or social media. 

Creating branded experiences in Roblox can drive sales and engagement, allowing companies not only to weather the current economic storm but also position themselves as leaders in the next wave of digital marketing.