#Roblox has been turning on a lot of new revenue streams recently - immersive ads, subs, limited items, etc.

My money is on real world commerce being the next big revenue activation

With tens of millions of virtual items being bought and sold in Roblox's marketplace every day and hundreds of millions of monthly virtual transactions, commerce is alive and well on Roblox. The next big commerce opportunity for Roblox is to enable real world commerce in the metaverse.

Imagine visiting the Gucci Garden in Roblox, discovering some new handbags, trying it out on your avatar, and buying it "two for one" style where your purchase of the virtual handbag kicks off a back end e-commerce process that has the physical version of the handbag show up on your doorstep the next day.

Roblox has shared their vision of real world brands using Roblox to sell physical versions of their products and services. They believe Roblox will become a major commerce channel for brands. I agree.

Today, Roblox has 65.5 daily active users & there were 14B hrs engaged last Q. With that much time already being spent on the platform socializing, playing, discovering new worlds and buying virtual items, it seems only natural that users will spend some of that time shopping, especially if real world commerce is integrated into the experiences people are already spending so much time in. We see it happening with social, as commerce becomes integrated into social media, people are buying directly from within Facebook, Instagram or Pinterest.

People prefer trying out new products before they buy them. The metaverse offers a unique experience for consumers to interact with 3D virtual versions of products before buying. VR and AR adoption should provide a catalyst for this new category of real world commerce on Roblox. Being able to “touch” and interact with a product increases sales conversion rates and reduces returns. In a recent Digital Deloitte and Snap study, it was shown interacting with products that have AR experiences leads to a 94% higher conversion rate.

Next level commerce that Roblox may enable in the future involves customizing products to suit consumers specific tastes. Most users spend a lot of time creating inside Roblox. It's not a stretch to imagine working side by side with your favorite brand (probably thru an AI run designer avatar) to design and/or customize their product to suit your needs, before having it sent to your house.

Long