Twitch is upgrading its ad revenue model to provide creators with bigger pay outs from ads.
The videogame streaming platform said it has traditionally calculated creator earnings from ads through a fixed cost per mile (CPM) — a flat rate for every 1,000 ad views on their channel.
To ensure the company can pass price increases through to their creators, they are now moving away from a fixed CPM structure to a percentage-based revenue share model.
The new model pays creators 55 per cent of the revenue for each ad that runs on their stream.
The change represents a 50-150 per cent ad pay rate increase for the vast majority of creators, Twitch said.
The changes follow the release of Twitch’s Ads Manager tool and the Ads Incentive programme (AIP). Their aim was to make managing ads easier.
Following a test to help creators earn ad income more reliably and along with creator feedback, the change to a percentage-based model was decided upon.
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