STREAM REPORT NEWSLETTER

#158

Is Twitch Facing an Adpocalypse?

November 20, 2024

Welcome to Stream Report, a newsletter from Gaming Careers covering important news and updates in streaming and content creation.

In this issue: We examine the recent drop in ad revenue on Twitch, discuss how tags are impacting streamer earnings, and explore what Twitch is doing to address advertiser concerns.

Twitch’s Adpocalypse: What’s Really Happening?

Is Twitch Facing an Adpocalypse
Twitch’s Adpocalypse: What’s Really Happening?

Over the past few weeks, many streamers have reported significant drops in ad revenue, with some claiming their earnings have dropped by as much as 80-95%. This sudden dip has sparked concerns that Twitch may be heading toward its version of the YouTube Adpocalypse—a term coined in 2017 when YouTube lost a considerable chunk of its advertising revenue due to content controversies.

But is Twitch really facing an Adpocalypse, or is there more to the story? Let’s dive into what’s happening and what it means for streamers.

What’s Going On with Twitch Ads?

Several streamers have shared that their ad revenue has taken a nosedive, with some seeing as much as an 80-95% drop in earnings. This decline seems tied to advertiser concerns about where their ads are being placed, particularly around politically sensitive or controversial content.

It appears that Twitch has started to limit ads on streams that feature certain tags, especially those related to politics or sensitive social issues. For example, one streamer, TheStockGuy, saw his ad revenue return to normal after removing the “Election” tag from his stream. This suggests that Twitch might be restricting ads on streams with political tags to appease advertisers who want to avoid being associated with controversial content.

Why Tags Matter More Than Ever

In the past, stream tags were mainly used to help viewers find streams that matched their interests. But now, it looks like tags have a much more significant impact on revenue than they used to. Streamers who discuss political topics or sensitive issues may find that using certain tags results in fewer ads being run on their streams, which could lead to a significant drop in earnings.

Twitch will likely need to build a more robust, automated system for classifying content. Right now, the platform is relying on streamers to manually tag their streams, but this system has its flaws. With streamers potentially incentivized not to tag controversial content accurately to avoid losing revenue, Twitch may need to step up and create a more reliable way to automatically classify streams—similar to what YouTube implemented after its own Adpocalypse.

What Does This Mean for Streamers?

If you’re a streamer on Twitch, here are a few things to keep in mind:

  • Diversify your income: With ad revenue becoming more unpredictable, it’s a good time to explore other income streams. Don’t put all your eggs in the Twitch basket.
  • Tags can impact your earnings: Be mindful of the tags you use. If you cover political or sensitive topics, you may see fewer ads on your stream, which could affect your revenue.
  • Monitor your ad revenue closely: If you notice a sudden drop in earnings, take a look at the tags you’re using. Removing certain tags—like “Politics” or “Election”—might help restore your ad revenue.
Learn More

🔥 Pete’s Content Corner

Delve into my weekly selection of content creation highlights—handpicked videos, podcasts, and tweets that promise to captivate, educate, and entertain.

  1. Kai Cenat has reclaimed the Twitch subscriber crown from Ironmouse, now boasting over 440,000 subscribers with two weeks left in his subathon.
  2. YouTube Shorts can now feature an indicator for upcoming live streams, allowing viewers to activate notifications and boost live viewership.
  3. Twitch’s Alert system now lets you create custom alerts for specific viewer’s actions.

edition:

#158

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The founder of Gaming Careers with a borderline unhealthy obsession for cameras, microphones, and all things streaming. He gets mistaken for Stephen Merchant at least 5 times a day.

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