May 1 (Reuters) - Roblox ( RBLX ) is rolling out virtual

billboards with video advertisements, the gaming platform said

on Wednesday, in its latest move to draw revenue from its games

that are mostly free to play.

Users will now see billboards featuring content from brands

such as e.l.f beauty, Walmart ( WMT ) and Warner Bros

Discovery ( WBD ), just as they would in real life.

That would give advertisers access to Roblox's ( RBLX ) nearly 72

million daily active users - half of whom are Gen-Z customers, a

population group prized by marketers and businesses.

The company in November began testing the video ads - that

will be served to users who are 13 years and older - as part of

its efforts to reduce reliance on revenue generated from its

in-game currency "Robux", which players can use to buy outfits,

vehicles and other features inside the company's digital worlds.

It charges a fee on all purchases done on its platform,

which hosts millions of videogames that are built by its users -

who get a share of any related revenue.

That practice will extend to the ads, with creators of the

virtual worlds who opt to show the billboards getting a portion

of the revenue Roblox ( RBLX ) makes from them.

Roblox ( RBLX ) is hoping its large Gen-Z user base will give it an

edge in the competitive ad market, where it would have to

wrestle for marketing dollars with tech giants such as Google

and Meta Platforms ( META ) and smaller players such

as Snap.

"By advertising on Roblox ( RBLX ), brands can create deeper

connections and engage tens of millions of Gen-Z users," said

Stephanie Latham, vice president of global brand partnerships.

"We are also in beta with some partners on what a cost per

completed view product would look like on Roblox ( RBLX ) and so expect

to have more specifics later this year," she told Reuters.

The company had last month hired advertising tech firm

PubMatic ( PUBM ) to ramp up sales of the new video ads.