Twitch Advertisement
https://digiday.com/marketing/twitch-programmatic-guarantees-advertisers/
https://www.pmg.com/blog/what-you-need-to-know-about-twitchs-ad-platform/
Twitch is a video streaming platform with around 15000000 users per day. It is a free to use platform for streamers to stream for and interact with their communities. The creators make money from subscriptions from their viewers and other things as well from twitch prime members. They also make money on ads along with twitch themselves. A lot of electronics and gaming related companies dominate advertising on twitch as it is seen as a very gaming centric website. But other companies are starting to take notice such as Old Spice. The allure of such a website from an advertisement perspective is how engaged the users are with the content. However, only a portion of its current users ever sees the adds due to add-free prime members. They decided to get rid of the add-free benefit and broadcaster controlled ads. They are also bundling into these ad packages, add management tools. Advertisers will be able to see what demographics they are reaching, and will be able to change that and get their ads to the specific groups they want to advertise to. Also, they are bundling twitch ads with amazon ads into easy to attain ad packages that reach a large and diverse audience. Along with the high engagement, twitch is also a very diverse website. This way they have a larger inventory of ad spots to sell, and offer the tools necessary to more efficiently use your ad package. They already sell their current lineup, probably at similar to market price. So, they know what their current advertisers value their ad spots at. So, with this great increase in inventory, amazon help and a new effort to prove they are a diverse website; they feel comfortable raising prices of the ad packages. So, by offering more they are hoping that the advertiser’s value of the ads goes up as well. So, they are trying to force the market value up by asking for a much higher price for these ad packages.
This applies to the search industry portion of the class as we see that twitch makes money from ads that advertisers pay for. The advertisers are paying for a certain number of views from users clicking on their favorite streamer’s stream. They started at what is probably a stable market between websites and advertisers. They wanted to raise their value from an advertiser’s point of view. This is done by trying to prove that the website has higher engagement than others along with high diversity, larger inventory of ad-space, and high levels of control over ads. Advertisers like Old Spice have clearly seen the benefit and chosen twitch instead of other platforms to advertise on. Since, if this works, advertisers will value these ads more, Twitch is looking to ask for higher prices for these packages. So, we are seeing a raise in the value of twitch, and a raise in the price asked by twitch. In the end advertisers are getting their ads to more people and twitch is making more money from roughly the same mount of viewers. It’s still too early to tell if twitch has changed the views of enough new advertisers to call the effort a success.