Is Twitch an Untapped Ad Outlet?
🎮 The Paradox of Twitch Advertising in the Gaming Industry 🎮
The 2024 Gamesight report highlights a fascinating insight: Twitch boasts an impressive 12% conversion rate, which they define as the % of ad viewers who either install, reactivate or purchase from the ad. This figure suggest that Twitch is a goldmine for game company marketers.
The report goes on to point out that, despite these stellar metrics, only 18% of media plans include Twitch advertising. So, why aren't more game companies leveraging this platform?
From my own experience there are significant barriers to Non-AAA game studios:
High Cost Barrier to Entry 💰
Twitch's minimum ad spend requirements can be prohibitive, especially for indie developers and smaller studios. The substantial budgets needed make it less accessible compared to other programmatic ad channels.
Lack of Self-Service Tools 🛠️
Unlike programmatic channels like Google or Meta, Twitch doesn't offer a fully self-service advertising platform. Marketers must coordinate directly with Twitch account representatives, adding complexity and slowing down the campaign setup process.
Limited Reporting and Data Integration 📊
Twitch currently lacks robust reporting tools and doesn't support post-back click ID information. This limitation makes it challenging for marketers to track performance accurately, optimize campaigns, and integrate Twitch data with their overall marketing analytics.
To Gamesight’s credit they do list these concerns as cons to including Twitch in paid media campaigns. I am curious what data pool Gamesight was using to collect the data for this report. While I agree that Twitch can be a strong including in ad campaigns, in my experience it needs to be at a high level of spend and incorporate sponsored streams where the streamer is actually playing and promoting the game.
No doubt Twitch offers unparalleled access to a highly engaged gaming audience, but significant hurdles prevent many from tapping into this potential. I for one would love to see Amazon launch a self service interface to allow smaller advertisers a way in to the Twitch ecosystem.