Twitch is a popular video streaming platform where gamers host esports tournaments or stream their live gameplay. Over the past few years, its user base doubled. As of 2023, it has over 7 million streamers and around 140 million monthly active users.
Like other content platforms, it has a mechanism to support content creators, named the ‘Twitch Ads Incentive Program’. However, users complain that Twitch ads are frequent, irrelevant, and negatively impact the user experience. Twitch claims it enforces just a couple of ads but the rest are implemented by the streamers.
This article sheds light on the truth behind this whole scenario, highlighting Twitch ads, their frequency, and how Twitch can manage and control its ads for a better user experience.
The Problem with Twitch Ads
Before we move on, it’s necessary to fully highlight what’s going on, and what’s the actual problem that users are facing.
Frequency
The new stream begins with a pre-roll ad of 30 seconds, but that’s forced by the Twitch platform as part of the incentive program. If a streamer opts to skip that, he needs to add 30 secs of ads per 10 min, within the video. Well, the users suggest that on average ads they see 8 to 15 ads in an hour. As per research, these are willfully added by the streamer, and Twitch doesn’t have a role in it.
However, still, the enforced ads are much higher than what we see on other platforms like YouTube. There, the duration for pre-roll ads time is around 15 seconds, and there’s an option to skip in-video ads. Although YouTube ad frequency has increased over the past year, still they are quite less than what is seen on Twitch.
Relevancy
Multiple ads are annoying and what’s more annoying is their irrelevancy. If you are shown something that’s disconnected from your interests or showcases unsuited products, it neither benefits you nor the advertiser.
Surprisingly, Twitch’s ad targeting is so imprecise that users often find promotions that are out of place or irrelevant to them. For them, these ads contribute to a disjointed and irritating viewing experience. And it’s a missed opportunity for brands as they don’t reach their targeted audience.
Impact on User Experience
The frequency and irrelevancy are one of the reasons why the content gets skipped. For instance, when a user clicks on a new stream and is immediately hit with a pre-roll ad. Chances are, they will bail.
Then there are the mid-roll ads, randomly cutting in, often at the worst times. Imagine an exciting moment unfolding in the stream, the chat buzzing about it – but you miss it all because of an ad. And it is not a one-off; these interruptions happen repeatedly, spoiling the experience.
Also, users have complained if they pause the stream and resume, the ads regenerate and they a bunch of ads more. This constant disruption doesn’t just annoy viewers; it also harms the streamers’ engagement with their audience.
Why Twitch Ads are Out of Control? [3 Key Reasons]
Let’s move on to why these ads are all over the place. Is Twitch to blame or are the streamers?
Twitch’s Monetization Strategy
Twitch’s financial backbone is largely supported by advertising revenue. Despite offering a subscription option like Turbo, which provides an ad-free experience, the platform’s main income stream comes from display ads. This dependency on ad revenue is why Twitch has forced a 30s pre-roll ad and three minutes of mid-roll ads per hour.
In the race for financial gains, the platform is under constant pressure to boost its ad revenue, a demand that often conflicts with user experience. As the need for increased profits grows, so does the frequency and duration of ads.
Streamer Incentives
Twitch has a unique approach to encourage streamers to run more ads: Ads Incentive Program. Under this scheme, a streamer can pocket 55% of the ad revenue generated from their channel. This substantial cut offers a tempting incentive for streamers to insert additional ads into their streams.
However, this system can lead to excesses. With the potential for significant financial gains, some streamers might get carried away, positioning multiple ads during their streams to maximize earnings.
Interestingly, viewers misconstrue this as Twitch’s doing, unaware that it’s the streamers who control the frequency of these ads. This misperception leads to misplaced frustration towards Twitch, while the real issue is misuse of Ads by the streamers.
Lack of Control for Viewers
On Twitch, viewers find themselves in a tight spot regarding ad control. Unlike platforms that offer ad-skipping options, Twitch enforces a rigid ad-viewing policy. Viewers can’t skip ads, nor can they influence the types of ads they see. Although Twitch has dabbled in collecting viewer preferences through surveys, this initiative hasn’t made a noticeable difference yet.
In an attempt to enhance their viewing experience, many Twitch users on desktop browsers resort to ad-blocking plugins. However, Twitch, aware of these ad-blocking efforts, has adapted its technology to circumvent such plugins. Most of these plug-ins have become less effective.
How Twitch Can Fix Their Ads?
Here’s the most important part, how can Twitch fix their ads or at least make sure they don’t affect the user’s viewing experience?
Implement A Tiered Subscription System
Twitch’s current offering, ‘Turbo,’ promises an ad-free experience across the platform. However, its effectiveness is diluted as streamers still have the option to run channel-specific promotional ads. So, with this loophole, viewers may still not get an ad-free experience.
To enhance user satisfaction and diversify revenue streams, Twitch should consider introducing a tiered subscription model with varying levels of ad reduction. For instance, a basic plan might eliminate a significant portion of ads, while an intermediate plan could further reduce ad frequency. The premium tier could offer a completely ad-free experience; with not a single ad in sight.
This tiered approach caters to different viewer preferences and budgets, making it a flexible option for a wider audience. Moreover, it opens up an additional revenue channel for Twitch, beyond the standard ad model. And for users, this could mean a seamless viewing experience.
Give Viewers More Control Over Ads
Twitch can significantly enhance the viewer experience by giving users more autonomy over the ads they see. One strategy may be letting them set their preferred ad frequency and ad categories they are interested in. This could be coupled with a subscription.
Secondly, Twitch may add a mechanism for viewers to report ads that are irrelevant, repetitive, or offensive. This would give more control to the actual users, rather than the streamer, who’s already earning enough.
Improve Ad Targeting And Relevance
Twitch should motivate advertisers to create ads that resonate with the Twitch community. Ads that are creative, entertaining, and relevant to the Twitch user base are more likely to convert.
Instead of solely relying on user surveys, Twitch should develop and implement sophisticated algorithms that analyze viewers’ watch histories and preferences. And then show them the most relevant ads.
Conclusion
Twitch heavily relies on ads for its revenue. But that model is a bit flawed. Users get frequent and irrelevant ads that disrupt the whole viewing experience of the stream. Twitch enforces -roll and mid-rolls in the stream plus it doesn’t limit the streamer to any ad value. They may place as many as they want.
Twitch does offer an ad-free subscription, Turbo, but that hasn’t fully addressed the core issue of ad intrusion. The streamers can still choose to show their promotional ads to subscribed users.
To mitigate these issues, Twitch needs to consider alternative monetization strategies, such as a tiered subscription system, enhanced digital sales opportunities for streamers, and improved ad targeting.
Questions for Discussion
What Are Some Alternative Monetization Strategies that Twitch Could Explore to Reduce Reliance on Ads?
One way could be offering a multi-tier subscription model that attracts the most number of users on the platform. Another way could be, a marketplace where streamers could sell digital/other products. Twitch could charge an e-commerce store a fee. Furthermore, Twitch can strengthen ties with brands to create content that seamlessly integrates into the platform. For instance, Twitch could become an affiliate partner for other brands.
How Can the Streaming Community Work Together to Address the Issue of Excessive Ads?
The streamer community needs to earn as well. So, they need to explore alternative options. One could be selling digital products, for instance, exclusive in-game items. Or they could start offering channel subscriptions, a members-only content for selective users.
What Are the Potential Consequences Of Twitch Not Addressing The Issue Of Ad Overload?
If Twitch doesn’t tackle ad overload, it risks serious repercussions. Viewer frustration could spike, leading to a decline in active users as they search for less ad-heavy alternatives. Similarly, advertisers could roll back their campaigns from the platform if they don’t achieve their targeted results. Twitch’s brand reputation could suffer, potentially deterring new users and partners.
