Twitch Ad Revenue Secrets Revealed – How Much Do Twitch Streamers Make Per Ad?

In this article, we’ll cover:

  • 1

    WHAT ARE TWITCH ADS?

  • 2

    WHY ARE THE INCENTIVE FOR STREAMERS TO SHOW ADS?

  • 3

    HOW MUCH DO TWITCH STREAMERS MAKE FROM ADS?

  • 4

    TWITCH GUIDELINES FOR SHOWING ADS

  • 5

    HOW TO RUN ADS IN YOUR CHANNEL?

  • 6

    HOW MANY ADS SHOULD YOU SHOW DURING A STREAM?

  • 7

    BREAKDOWN OF ADS REVENUE PER GEO LOCATION

  • 8

    ADVANTAGES OF AN ADS FREE CHANNEL

Introduction

Twitch ads are one of 5 ways for streamers to make money on Twitch and possible the most passive monetization method. With the press of a key, streamers can run ads and earn revenue as long as they have viewers watching those ads. With over 1.2 million concurrent viewers around the world, Twitch ad revenue is at an all-time high. This guide will walk you through the requirements, payouts and all you need to know in order to maximize your channel ad revenue.

A Guide On How To Run, Manage, And Optimize Ads On Your Channel

What Are The Requirements To Run Advertisements On Twitch?

In order to be able to run ads in your channel you’ll need to gain access to this feature, it’s really not that hard, all you need to do is to become a Twitch Affiliate  and that’s basically it, this option for affiliate was first introduced by Twitch at October 2019 and now if you are an affiliate the option to run ads in your channel will be available to you. 

Type of ads in Twitch

  • Pre-roll ads – this type of ads are the video ads you see when entering a channel, similar to how other video broadcasting are doing.
  • Regular ad breaks – With regular ad breaks the streamer can decide when to show an ad during his stream, up to a few months ago choosing to run a video ad during a break caused for the streamer to disappear from the screen and the ad to appear on the entire screen, but with Twitch introducing the Picture-By-Picture feature viewers can now see the streamer in a small window while watching the video ad, this new feature was received with a lot of enthusiasm from stream around the world.

By default channels on Twitch opt-in to the option of showing pre-roll ads, in order to change this streamer will need  to go to his channel settings and to opt-out of pre-roll ads, in exchange Twitch asks streamers to run an ad breaks of 60 seconds in order to avoid pre-roll ads, by doing so pre-roll ads will not show in their channel for 20 minutes.

Setting Up Your Twitch Ads – do’s and don’ts 

Do’s

  • At the start of the stream keep ad break to a minimum to gain momentum
  • Play ads whenever you go to do something or take a short break.
  • Run ads at an hourly interval to reduce viewer loss chances
  • Roll medium length ads, keep ad break up to 60 seconds
  • Let your audience know you run ads and announce when you are going to have an ad-dependent or ad-free stream.
  • Set and fix your preferred ad-rolling keys in your stream board system or keep your Twitch dashboard open.
  • If you have a moderator make sure they are feeling the right vibe in the channel.

Don’ts

  • Don’t run ads when your current viewership is lower than your average. 
  • Don’t use Pre-rolls, let new viewers appreciate the content before they see an ad
  • Don’t play ads when you are in the middle of content creating or entertainment.
  • Don’t change the length of your ad break, be consistent with your ad breaks 
  • Don’t ignore your viewer’s wishes, and listen to what they say, if you hear complains about too much ads think about reducing it.

How Much Do Streamers Make From Twitch Advertisements?

How much do Twitch streamers make per ad? Well, that is based on CPM (cost per mille) and the CPM is determined by the following parameters (ordered by level of importance) :

  • Amount of con-current viewers
  • Geo location of viewers
  • Viewers age and gender
  • Type of the game you stream
  • Seasonality  (Usually around holidays CPM will rise)

So it obvious that ads revenue varies, it can move from $2 to $10 dollars per 1,000 ad view impressions depending on the above parameters. It is also improtant to state that while Twitch affiliate keeps 50% of the revenue for partners it can change depending on how big of a streamer you are, some partners keeps 70% or even 80% of revenues.
Let’s look at the following example to explain it better –  You are an affiliate who stream 5 times a week and have an average of 500 CCV (con-current viewers) per stream, showing an ad every 20 minutes during your 5 hour stream your target audience is mostly mature and lives in the US, well during pick months (October-December) your daily income should be around $600. see calculation below –

  • We’ll take a CPM of $8 due to the demographics of the audience
  • $0.008 X 500 views per ad = $4 per ad shows
  • 3 ads per hour X 5 hours per stream = 15 ads or $60 per day 
  • 20 streams a month X 15 ads per stream = 300 ads or $1200 per month
  • 50% of $1200 = $600

The minimum of Twitch ad revenue per viewer impression is 0.002 cents, and the maximum is 0.01 cents. Twitch ad revenue payments like all other payments from Twitch will enter your account 15 days after a month, but Twitch will only send out payments if you have a minimum threshold of $100, if you didn’t reach the $100 threshold the amount will roll to the next month until you’ll reach the required amount.

Who will see ads in your channel

Basically all of your viewers will see ads apart from viewers who subscribed to your channel, these viewers will enjoy an ad-free channel so you should also think about what to show and speak of when you run a commercial break, keep in mind that your most loyal users continue to watch and hear you.

Now while the video ad will take control on your screen remember that the chat is active, ads break are a perfect time to speak to your community via chat to let them know you are engaged with them.

Ad-Free Streaming  

Let’s talk about the option of having an ad-free stream and if it worth running a channel with no ads.
Ads will generate revenue for you and yes viewers are already accepting the fact of ads in channel however if you think about the big picture you may realize that having an ad-free channel might benefit you even more in the long run, lets put it into test.
Channels with less or no ads at all tend to have more viewers, those viewers will convert into followers and subscribers ,which as you may already know if you’ve read our guide for Twitch subscribers, will generate revenue for you on a recurrent monthly basis.
Now let’s compare the two options, having a tier 1 subscriber pays streamer $4.99 per month, to get the same amount from ads you’ll need to show approximately  10-20 ads (assuming a channel with 100 CCV), that will mean running ad breaks every 15-20 minutes, viewers might leave your channel with this amount of ads and eventually you won’t get any subscribers.
Of course you’ll need to take into consideration other revenue channels such as donations, sponsorship, bits and other methods.
Our recommendation  is to not use ads in your channel until you’ll reach at least 100 CCV in order to keep growing your viewership, the amount you’ll make from ads will not be significant anyway with low viewership numbers.


Pro tip:Some users will see a black screen when you show video ads , this is because they have an ad-blocker installed on their browser. It is OK to ask your community to pause it while watching your channel. 

 

Top 10 countries by CPM for Twitch ads

In the following list you can view the average CPM you can expect from each country, please keep in mind that this is an average for the entire year so it might change due to the demographics of your viewers and seasonality
We only show here the top 10 countries which has a large amount of users in Twitch

  1.  Australia – $6.15
  2. United states – $5.33
  3. Germany – $5.06
  4. Norway – $5.04
  5. Canada – $4.64
  6. Japan – $4.60
  7. United Kingdom – $4.59
  8. France – $4.50
  9. Sweden – $4.27
  10. Spain – $3.83

Conclusion

Running ads in your channel is a great way to increase your revenue from streaming, this is a passive way your viewers will accept as long as you will not abuse it and do it properly.
You should find the balance between having ads and yet keeping the channel momentum going, keep in mind ads is not the reason your viewers are coming to watch you.

 

 

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