Roblox is expanding parental controls to rein in brand safety

The news: Roblox will expand parental controls next month following a series of reports that criticized the gaming platform for lacking safety measures for its largely underage user base.

• In a letter sent to parents, Roblox said users under 13 will need parental approval to access chatting features. Users under 9 years old will also need approval to play games with “moderate violence” and “crude humor,” per Bloomberg.
• Roblox is also rolling out a new account type that will let parents link to their children’s profiles to monitor their activity and friends lists.

Catching up: The news comes after a rough year for Roblox. Reports assailing its safety practices hinder its efforts to increase user counts and introduce advertisements.

• Earlier this month, short-selling firm Hindenburg Research published a report criticizing Roblox for lax safety standards and accusing the company of inflating its user and time spent metrics. That followed similar reports on child safety from Bloomberg and the government of Turkey blocking the platform in August.

Why this matters: Roblox’s large user base represents a valuable opportunity for brands to forge lasting relationships with young consumers. But repeated accusations of child safety shortfalls have thrown a wrench into plans to further monetize the platform.

• The company’s attempt to launch an advertising business is notable for its potential to affect the gaming industry at large. Major publishers like Electronic Arts have openly discussed bringing ads to online live service games whose models are comparable to Roblox, making its ad business one to watch.
• Roblox has forged relationships with advertisers and major exchanges, offering in-game video billboard ad inventory via PubMatic and appearing at Advertising Week New York. But brands will not be eager to advertise alongside content that is considered harmful to children or potentially illegal.
• The company’s presence on multiple, highly accessible platforms like mobile and browsers makes it a powerful vehicle for advertisements and for drawing new users with its free entry point. While its audience may attract advertisers, negative headlines could cause parents to restrict their children’s use, which would not be positive for the platform.