Amazon’s strategy to strengthen Twitch’s advertising business is taking shape. A few months ago it introduced the Ads Manager tool so that specific figures could generate more income and in a more stable way through advertising in their live shows, and now it is extending this scheme to more creators in its Partner programme. All of them will be able to opt to receive a fixed amount of money in exchange for broadcasting a specific number of hours per month with a certain density of ads.
In this way, the platform encourages its most popular members with the most loyal audiences to make them accessible to an advertising schedule that seeks a young audience that no longer consumes online television like previous generations. And it is doing so in the midst of a process of reflection on cutting the size of its followers’ subscriptions, as Bloomberg has been indicating in recent times. Amazon’s aim is to replace some of the money that creators currently receive from their audience with money they can generate through ads, which is more profitable and scalable for the company.
Amazon’s streaming platform is expanding and rethinking the way it intends to increase its advertising revenue.
The expansion of this programme brings with it some important changes, starting with the replacement of the previous fixed CPM model with a revenue-sharing structure like the one YouTube has been offering for years. The creator will keep 55% of what they bill for each ad, and Twitch says that means most will receive 50-150% more for each campaign than they do now. In addition, those who choose a three-minute-per-hour advertising pressure will be able to dispense with pre-rolls and receive higher payments.
Each streamer will be able to determine whether or not they are satisfied with the offer they receive each month to display ads in Ads Manager, and they will be able to turn the feature on and off at will. And Twitch guarantees that no one who enters into this initiative will be charged less than what they have been charging for displaying ads outside of it.
Beyond Amazon’s interest in promoting its advertising business, the programme helps in part to retain creators and keep them motivated, which is essential to keep their audience coming back to the platform on a recurring basis. One of the traditional complaints of these people, shared with the youtubers, has been the stress of a fluctuating turnover where it is difficult to make forecasts for the next month and switch off.