STREAM REPORT NEWSLETTER

#178

Twitch is Testing a New Ad Format

May 14, 2025

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

In this issue: Twitch's ad experiment involves displaying muted video advertisements in a dedicated space alongside the main stream content, allowing the creator's broadcast to continue uninterrupted.

Twitch’s New Ad Test: A Glimmer of Hope or More of the Same?

Twitchs New Ad Test A Glimmer of Hope or More of the Same
Twitch’s New Ad Test – Streamer @RottenPapi

Twitch is currently the subject of discussion for testing a new ad format. The experiment involves displaying muted video advertisements in a dedicated space alongside the main stream content, allowing the creator’s broadcast to continue uninterrupted.

What’s Being Tested?

Imagine watching your favorite streamer, and instead of only seeing their content, a muted video ad plays in a separate, designated side-by-side slot on the screen. The stream itself continues with full audio and video from the creator. While current examples seem to utilize existing video ad inventory, it’s plausible that if this format rolls out officially, brands would create bespoke, better-fitting video content for these spaces, making them feel more integrated.

The Community Reaction: Positive (At First)

The initial reaction from many creators and viewers has been notably positive. For years, interruptive pre-roll and mid-roll ads that take over the entire screen and halt the content have been a major pain point for both viewers and streamers who have minimal control over them. The prospect of a less intrusive ad experience is, understandably, very appealing.

A Dose of Realism: Will This Replace Interruptive Ads?

Before we get carried away, it’s crucial to understand the context and address the big question: will these new, less intrusive video ads replace the disruptive full-screen pre-rolls and mid-rolls?

These new tests appear to be happening within the framework of Twitch’s existing Stream Display Ads (SDAs) – those typically static banners or GIFs that have been part of Twitch’s advertising toolkit since 2021. The core appeal of SDAs has always been their non-intrusive nature.

Here’s the potential catch: because this new video ad test seems to be an evolution of the SDA format, there’s a significant concern that these new video SDAs might not replace the current interruptive, full-screen ads. Instead, they could simply become another layer of advertising viewers encounter. This would align with Amazon’s broader strategy of increasing ad inventory across its ad-supported platforms.

What Does This Mean for Streamers and Viewers?

The hope, of course, is that Twitch and Amazon recognize the overwhelmingly positive feedback this non-interruptive ad test is generating. If this new format were to replace or significantly reduce the reliance on disruptive pre-rolls and mid-rolls, it would be a massive quality-of-life improvement for everyone on the platform.

However, the more pragmatic outlook suggests this might just be an evolution of the SDA, adding video to the mix but not fundamentally changing Twitch’s core ad strategy regarding interruptive ads. If that’s the case, the initial excitement could quickly turn into disappointment if viewers find themselves facing the same old interruptive ads plus these new video SDAs.

Final Thoughts

Twitch always faces a tricky balancing act with advertising: viewers want fewer ads and less disruption, streamers want to maximize revenue without harming the viewer experience, and Twitch (and Amazon) aim for profitability. This new ad test is another example of Twitch navigating these competing interests. Whether it leads to a genuinely better ad experience for all parties or simply more ad slots remains to be seen. For now, it’s a space to watch closely.

🔥 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. Twitch launched Treasure Trains, a new Hype Train variant that unlocks a 35% discount on 5+ gifted Tier 1 subs if the train reaches Level 5.
  2. Kick introduced Predictions as a new interactive feature for viewers to use with their Channel Points, accessible via the /prediction chat command.
  3. YouTube addressed common misconceptions about Shorts, emphasizing their diverse content appeal, growth potential, and integration within the broader YouTube ecosystem.

edition:

#178

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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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