There is currently a lot of excitement on Twitch regarding advertising revenues. Some streamers report that their income has completely collapsed due to running advertisement clips. An expert, Ludwig Ahgren, now explains what Twitch can learn from YouTube.
What is happening on Twitch right now? There is excitement regarding advertising revenues on the streaming platform.
- The streaming expert Devin Nash had already warned in advance that Twitch is heading towards catastrophe: Advertisers would leave the platform if their ads run on streams with controversial content, according to the businessman.
- Twitch responded with new content labels: Anyone who indicates they are discussing politics in their stream can no longer monetize that stream.
- More and more streamers now report earning little or no money from ads – even if they don’t show political or controversial content. This is being referred to as the “Adocalypse,” the “advertising apocalypse.”.
The former Twitch streamer Ludwig Ahgren has now talked in a video about how it came to this point and what the streaming platform could learn from YouTube.
On Twitch, streamers primarily earn through subs and ads, along with donations from viewers:
A targeted campaign is said to have led to the “Adpocalypse”
This is what Ludwig says: The streamer attributes the current situation to the ban that the streamer Asmongold received in mid-October after comments on the Gaza war from Twitch.
This led to a discussion about anti-Semitism on Twitch: The platform was accused of not banning other content creators like the political streamer HasanAbi for his actions and comments on Israel, even though his statements were at least as bad as those of Asmongold.
People then directly contacted advertisers. This happened in October, but Ludwig suspects that these advertising partners have now withdrawn for November.
This would be evidenced by the decreased advertising revenues of the streamers. Twitch had no time to resell the ad slots in such a short period.
However, he then switched to YouTube for a lot of money, where he continues to stream and has also achieved great success with his events. Ludwig’s partner, the Twitch streamer QTCinderella, also hosts an annual awards show on Twitch to honor streamers for outstanding achievements.
Ludwig is therefore well acquainted with both platforms and has special insights into the different streaming landscapes.
The ban policy of Twitch is not effective
What does the solution look like? According to Ludwig, Twitch is currently in a similar situation as YouTube was in 2017. At that time, advertisers were shocked that their products were advertised on videos featuring extremist content.
However, YouTube then developed a system whereby content creators make certain declarations that determine whether their content is fully, partially, or not monetized at all. The accuracy of these declarations is checked with the help of bots: Those who lie will be watched more closely by YouTube in the future.
Ludwig believes that Twitch currently only has one real tool to punish content creators: the ban hammer. In response to the controversies, they have therefore tried to create ultimate user guidelines to catch all offenders and make advertisers happy.
However, the streamer criticizes that Twitch has always had a non-transparent and seemingly unfair ban policy. A ban is also too severe a measure, as it makes it impossible to produce any content. Other sources of income, such as reusing content on YouTube, also fall away.
Instead, a system like YouTube’s is needed, allowing streamers to produce difficult content while preventing them from monetizing it. A ban would then only be a last resort.
The new tags are apparently a first step from Twitch in this direction, but Ludwig points out that these tags, written markings on a stream, are actually used by streamers more for amusement.
Moreover, it seems that the system is not yet functioning correctly, as streamers who do not even talk about politics are being penalized.
Viewers say: Ludwig is protecting his friend
This is being discussed: Not everyone is satisfied with Ludwig’s analysis. Some viewers accuse the streamer of holding back too much to spare friendly content creators. HasanAbi, Twitch’s leading political streamer, is being blamed for the current problems.
Some viewers say: If Ludwig were to address the topic so evasively, he should not have made a video about it at all. Others, however, counter that the streamer was not about “drama,” but rather about an objective analysis.
It seems there are several factions that blame each other for the advertising crisis. Involved are not only HasanAbi and Asmongold, but also the controversial streamer Destiny and dancantstream, who had used their reach to pressure advertisers, as well as Ethan Klein, who has criticized Ludwig in a response video.
However, there are also streamers who say that nothing has changed regarding their advertising revenues. Among them is the former Blizzard employee PirateSoftware, who is now successfully streaming on Twitch. He claims there is no “Adpocalypse,” just a few issues with the new tagging system.
Overall, it seems that no one really knows what is going on right now and what the long-term consequences will be. However, the CEO of the competition believes he knows Twitch’s future: Are streaming millionaires about to lose their income? CEO of Rumble predicts the end of Twitch
