Twitch is expanding its ad incentive program to include more creators and pay them more money. Earlier this year, Twitch started offering select streamers a fixed, guaranteed payment in exchange for showing a fixed number of ads for a fixed number of hours. Now Twitch opens the program too Include more partners and changes the way it structures payouts to pay creators more†
Originally, payouts earned from the ad incentive program were calculated using a CPM model. Basically, streamers would get a flat rate for every 1,000 ads viewed on their channel.
“We found that a fixed CPM model wasn’t the easiest way to monetize creators,” said Mike Minton, vice president of monetization at Twitch, in an email to The edge† “So we are now launching a new model that is not only easier to understand, but also increases ad payouts by paying creators 55 percent of the revenue for each ad shown on their stream.”
While affiliates are not yet included in this new program, which will roll out on June 15, they will be eligible for 55 percent of ad revenue as of August, as long as they serve three minutes of ads per hour. Twitch will also disable the very annoying pre-roll ads for users who run ads during the same amount of time.
“Our ad products are built for Twitch’s live and interactive environment, and we’re constantly working to add less intrusive ad experiences for viewers and creators alike,” Minton said.
According to Twitch, the 55/45 split of ad revenue will “make sure” [Twitch] can pass on price increases to makers.”
Back in April, a Bloomberg report stated that Twitch was exploring ways to increase revenue by potentially decreasing revenue share with its top streamers. The report sparked immediate responses from the platform’s best-known names; However, Twitch has not confirmed that it will make any changes to its current model. This new extension to the ad program could be one way to potentially soften the blow to changes that have not yet been announced.
Income reliability has been one of the biggest pain points for Twitch streamers. The ad incentive program was created to take some of the stress out of not being able to reliably calculate monthly earnings. Twitch is notorious for streamer payouts, and aside from a data breach in 2021 that revealed what some streamers paid, we don’t know what the average streamer on the platform earns. According to Minton, “creators will have made more than $1 billion in revenue by 2021, including revenue from subs, bits, and ads. That’s an increase of more than 50 percent from 2020.” What that number is relative to the money Twitch is bringing in itself – on the labor of its streamers, you will recall – is a mystery.