We've all been there. You enter a stream of one of your favorite creators, and you're hit with a pre-roll ad. You stick around and finally get to enjoy the content you came for, and just when things are getting good, you're hit with another ad. At this point in the game, we all know that some of our favorite creators rely on ads to support their content. On the flip side, as an upcoming streamer, you're probably wondering how much you can anticipate making from ads.
In this blog post, we'll explore Twitch's ad revenue structure, including some updates coming to the platform that may change the ad experience from both a streamer and viewer's perspective.
How Much Do Twitch Ads Pay Per View?
According to Twitch, the platform currently pays creators a fixed amount for every 1,000 views ( which is referred to as a CPM–cost per thousand, using the roman numeral "M" for 1,000). The fixed rate may vary amongst creators and depends on factors such as the time of the year (i.e., during the holiday season, advertisers are willing to pay more which trickles down to creators).
In early 2022, Twitch introduced "reliable ad revenue" by creating the Ads incentive Program (only available to Partners), which essentially offered fixed payouts to creators that agree to streaming conditions (in the form of personalized offers to receive the payout). For example, a streamer could have the option between the three incentives below available on their Twitch dashboard, according to Twitch's site:
- $100 incentive for two mins of ads per hour + stream 40 hours for the month
- $300 incentive for three mins of ads per hour + stream 40 hours for the month
- $500 incentive for four mins of ads per hour + stream 40 hours for the month
The individual creator's average determines the required stream hours from previous months.
Updates to How Twitch Will Share Ad Revenue
Twitch announced at Twitchcon San Diego that a host of changes would be coming to the platform, including a percentage-based revenue model, paying 55% to creators (less necessary fees). Twitch estimates that this will represent an increase of 50-150% more earnings for most creators. Below are some of the key changes.
- Twitch will remove all ads from non-Affiliate and non-Partner channels.
- Picture-by-picture (side-by-side) viewing of ads will take place on gaming streams (excluding non-gaming categories and pre-roll ads) to offer undisrupted gameplay views.
- Affiliates and Partners can disable pre-roll ads in favor of regular ad breaks with the following parameters.
- 90 seconds or longer ad break = 30 minutes of disabled pre-roll ads
- 60 seconds or longer ad break = 20 minutes of disabled pre-roll ads
- 30 seconds or longer ad break = 10 minutes of disabled pre-roll ads
- The loudness of ads will be normalized to match that of the stream.
- Ads on raids will be stopped.
While there is no specific amount a Twitch streamer can expect to receive from ad revenue, it's evident that Twitch is addressing streamers' concerns to create revenue-sharing structures that will bring more money to creators in addition to only placing ads when it benefits the channel it appears on.