How Twitch Is Appealing to Advertisers

How Twitch Is Appealing to Advertisers

Advertising Gaming

Twitch, the popular streaming site owned by Amazon, is expanding marketing partnership opportunities beyond its competitive esports channel, Twitch Rivals. The gaming platform’s new Official Marketing Partner program creates branding opportunities for /twitchgaming, a Twitch channel dedicated to non-competitive gaming. Already Chipotle and Ally Financial have signed up. Does it make sense for your brand to join the party? Read on.

How Twitch Has Grown during the Pandemic — and Who Likes Twitch

Twitch has definitely enjoyed a growth spurt. The platform exploded in popularity during the pandemic, as gaming and streaming became reliable sources of entertainment in a world locked down against the virus. According to Ad Age, “Twitch has nearly doubled its daily visitors and minutes watched since the pandemic began.” That translates into an average of 30 million visitors daily — up from 17.5 million in 2020. This growth is good news for brands who want exposure. In January alone, according to Modern Retail, Twitch users devoured more than two billion hours of content.

Who are these viewers? Ad Age reports that almost half of Twitch users are 18 to 34 years old; 21 percent fall into the 13-to-17-year-old demographic. That’s a big piece of the Gen Z/Millennial pie. Lou Garate, the head of global sponsorship sales at Twitch, also notes that Twitch followers tend to be online loyalists who seek nearly all their entertainment online, making them hard to reach via more traditional advertising channels.

Twitch Expands Marketing Opportunities

Given the elusive nature of that demographic, perhaps it was inevitable that Twitch would grow as a branding destination. At first, only brands with a clearly defined tie to gaming tested the waters: headphone companies like Hyper X, for example, and energy drink brands like Red Bull and Monster tested out promotion with campaigns that proved popular. Doritos also was in this vanguard, in 2018 sponsoring a Twitch competition called the Doritos Bowl.

But while headphones and snacks make perfect sense when it comes to partnering with a gaming platform, brands in other arenas are starting to explore how they might connect with Twitch users. Understanding that Twitch actually supports an increasingly diverse array of niche communities has been key. Chess, for example, is popular on the platform. So is anime.

As a result, any number of brands are starting to think about partnering with Twitch. Consider Lexus, which in January recruited the Twitch community to create a custom version of its 2021 IS sedan. Twitch streamer Fuslie hosted a livestream in which viewers could vote on modifications to the car, including gaming consoles and car wrap; more than half a million viewers showed up. A second livestream on February 17 disclosed the car’s design.

Brands like Chipotle have certainly seemed to do their homework in order to find a home on Twitch. According to a 60,000-person user panel called the Twitch Research Power Group, a whopping 97 percent of Twitch users eat at quick service restaurants — 57 percent of them on a weekly basis. In addition, arbiters like McKinsey & Company have identified Gen Z (a significant percentage of the Twitch audience, as noted above) as the “True Gen,” a generation dedicated to, among other things, ethical concerns. Chipotle speaks to these factors in a Twitch campaign that reaches out to Gen Z in particular in a meaningful way. As Ad Age reports, Chipotle will in coming months sponsor custom segments in /twitchgaming show The Weekly, including a “Chipotle Build Your Own PC” segment in which guests build their own PCs —much as customers build custom burritos at Chipotle. After the segment, Twitch and Chipotle will give the equipment to a nonprofit.

Twitch’s expanded Marketing Partners Program

Let’s take a closer look at the new Official Marketing Partner program. The Chipotle campaign is part of this effort, which essentially has meant Twitch opening up sponsorship opportunities on its /twitchgaming channel. “With the launch of this new Official Marketing Partner program, we’re taking a unique approach in sponsoring non-competitive content, to reach a new audience of elusive gaming enthusiasts on /twitchgaming,” Garate explains. The new program demonstrates Twitch’s desire to work with brands and connect them with gamers across the platform — not just those interested in Twitch Rivals’ esports content.

What Brands Should Do

 Interested in exploring opportunities to partner with Twitch? We recommend the following:

  • Understand your audience. As noted above, the demographic skews young, and they don’t necessarily respond to traditional advertising. Take a page from Chipotle’s book and get to know the Twitch audience — and how to speak their language.
  • Understand the nuances of Twitch. As Jamin Warren, the founder of the gaming-focused consultancy Twofivesix, notes, “Of all the platforms that we look at, Twitch is really one of the most interesting, and it’s the most complicated as well.” One reason? Part of Twitch’s draw stems directly from the appeal of its streamers. Brands launching channels must find authentic, identifiable streamers to run their accounts. Otherwise, they may find themselves speaking into the void.

Brands also need to get comfortable with the nature of this beast: livestreams are by definition hard to script, and the best content tends to be spontaneous. Maintaining that spontaneity while keeping things from going off the rails can be an art — and one that brands need to learn in order to thrive on Twitch.

Contact True Interactive

Does it make sense for your brand to reach out to the Twitch audience? Contact us. We can advise.

Twitch Is Hot: Here’s Why

Twitch Is Hot: Here’s Why

Marketing

As the COVID-19 pandemic roared across the globe in 2o2o, social distancing guidelines closed down stadiums and theaters everywhere. Suddenly Amazon-owned Twitch, already popular, took on an even greater resonance: the streaming platform represented a way to connect and experience, virtually, events and the sense of community that had been eradicated by the virus. Savvy brands understand the opportunities inherent in Twitch—a platform that’s currently filling a need, even as it continues to grow. Curious? Read on to learn more.

What Is Twitch?

Twitch is an online platform for livestreams, on which users can broadcast a livestream or watch other streamers. The platform was introduced in 2011, and while the focus has traditionally been on video games, Twitch is constantly evolving. It currently features music and lifestyle content, as well: Twitch users can watch anything from video gaming to music festivals, cooking shows, live tutorials of artists drawing (a la Bob Ross!) or professional sports. According to Ad Age, Twitch’s Just Chatting channel—essentially streamers chatting with the audience—has been the platform’s most-watched category in the second quarter. Sean Horvath, the chief revenue officer at StreamElements, notes, “We are starting to see a rise of streaming stars who don’t game at all . . . [T]hink of it like any talk show you watch on TV, but the difference is viewers can also make comments directly to the hosts.”

That’s right. Twitch’s interactive nature is supported by chat features; spectators can interact with one another and with the broadcasters (streamers), too. The platform has been described as a sort of virtual return to the social experience of arcade gaming. In the arcades, crowds would form around someone playing a certain game well, and people would talk about the game while they waited for their turn—and possibly pick up some tips and tricks from the player. Livestreaming on Twitch brings this interactive experience online, regardless of whether the point of discussion is a game—or a new recipe for chili.

Who Uses Twitch?

As Ad Age recently reported, Twitch hit a new milestone in spring 2020: Twitch exceeded 3 billion streaming hours in the first quarter of the year.

The audience skews younger. Kayla Carmicheal’s recent post on the Hubspot blog identifies users as teen gamers, with the largest group (22 percent) coming from the United States. Of the 28 million unique users per month in the U.S., she says, 80 percent are teen males. According to brand24.com, Millennial gamers also make up a significant portion of the Twitch audience. To be specific, Twitch reaches 50 percent of Millennial males in America.

Furthermore, Twitch users have been described as socially conscious and passionate about important causes. This year, the platform made headlines when it became a hub for social activism, with users creating Twitch channels for the express purpose of livestreaming Black Lives Matter protests. As Brielle Villablanca, a Twitch spokeswoman, told the New York Times, “[W]e’ve seen creators livestreaming content from the protests and engaging their communities in open conversations around race, inequality and how to effect change.”

And the platform attracts an audience open to advertising. According to brand24.com, 82 percent of Twitch users believe sponsorships benefit gaming. And 80 percent are receptive to brands sponsoring gamers and teams.

Advertising Options on Twitch

In short, the platform provides fertile ground for advertisers who want to connect with passionate, driven consumers. Marketing exposure on Twitch can take several forms, including:

  • Partnering with an influencer. A streamer might include a brand in a sponsored stream title or on a tile on their channel page.
  • Brand placement on the stream itself, or behind the streamer on their webcam.
  • Branded emotes, like the “DoritoChip,” which between November 2, 2017, and January 8, 2018, was used by viewers an average of 17,330 times a day.
  • Pre-roll ads, which can run before a stream.

What Brands Use Twitch?

Some savvy brands have already recognized the potential Twitch offers to connect with a young, engaged audience. And they’ve done so in creative ways. For example:

  • Totino’s Pizza Rolls created an attention-grabbing game within the game during a sponsored stream. After each win, streamers rewarded themselves by eating pizza rolls live.
  • Monster Energy Drinks sponsored Jaryd “Summit1G” Lazar, who streams with a stocked Monster mini fridge situated right behind him. During streams, viewers have asked him about his favorite drink flavors, and new flavor releases, calling even more attention to the brand.
  • 1,000 Dreams Fund (1DF), a non-profit dedicated to providing 1,000 university women with grants, partnered with Twitch to give financial assistance to female streamers currently attending college. The aid could be applied to conventions like TwitchCon, or even new hardware, and the campaign introduced the non-profit to a completely new audience (the campaign also highlighted that Twitch doesn’t exclusively draw a male demographic).
  • Nissin Foods partnered with influencer Pokimane, who demonstrated how noodles are a clear fit to the gaming lifestyle when she made Nissin instant noodles during a stream. Pokimane, who draws more than four million followers to her channel, added a layer of whimsy by incorporating a “Slurp Meter” graphic onscreen to measure how loudly she ate her meal.
  • Career search engine Indeed used a pre-roll ad to demonstrate how a Twitch streamer and a digital artist used Indeed to connect—and ultimately collaborate.

Contact True Interactive

Eager to reach out to a Millennials audience? Interested in incorporating Twitch into your next campaign? Contact us. We can help.

What Is Stadia?: Advertiser Q&A

What Is Stadia?: Advertiser Q&A

Google

Over the last decade, streaming has become one of the most disruptive forces media, changing the way we experience everything from movies to music. Now Google, with a new cloud-based gaming platform called Stadia, hopes to use streaming to irrevocably shape the way we play. Here are answers to questions you may have about it.

What Is Stadia?

Stadia is Google’s new cloud-based gaming service that will be accessible through multiple mobile devices including PCs, laptops, smartphones, and smart televisions and tablets. Instead of purchasing a game at a brick-and-mortar store or downloading a title on their console, gamers will simply stream the games running on Google’s cloud servers. As announced at Google Stadia Connect and Gamescom 2019 in August, the catalog currently includes 39 games ranging from Cyberpunk 2077 to Mortal Kombat 11, Attack on Titan 2: Final Battle, and Kine.

According to John Justice, VP of product for Google Stadia, the goal is to bring “all the games you’d expect to have” to Stadia, as well as games “only possible in the cloud.” Games are streamed from Google’s constantly upgraded servers, which means players don’t have to monitor (or wait for) downloads or updates.

And the platform is meant to allow for the multiple ways gamers play. As Google VP Phil Harrison told Eurogamer, “[The word ‘Stadia’ is] the plural of stadiums . . . A stadium is a place where you can have, obviously, sports, but it’s also a place where you can have entertainment. And so we wanted that to be our brand idea, which was a place for all the ways that we play and this idea of watching, playing, participating . . . where you could take a slightly ‘lean-back’ view of a game [if you wanted to]. You don’t necessarily have to be leaning into every last button press per second of a game.”

When Does Stadia Go Live?

Google Stadia’s Founder’s Edition will be released in November 2019 in 14 territories including the United States, UK, and Canada. Those who opt for the Founder’s Edition will drop $130—less than the price of a new PS4—for a Chromecast Ultra and a limited-edition “Night Blue” controller. These early adopters will receive not only the hardware, but also three months of free premium service (called “Stadia Pro”—more details below). They’ll also receive a three-month “Buddy Pass” so that a friend can also enjoy Stadia Pro.

Why Is Google Interested in Gaming?

A shift into the video game business may seem like a big move for Google, but gaming is a lucrative industry. According to market analysis firm Newzoo, the video game industry produced roughly $135 billion in sales in 2018. GlobalData predicts that number will balloon to $300 billion by 2025.

Who Is Google Competing against with Stadia?

As far as game streaming is concerned, Google isn’t the only company exploring this new frontier. Microsoft is in the midst of planning its own offering, called xCloud. Twitch is a well-known and popular platform owned by Amazon subsidiary Twitch Interactive and introduced in 2011, which focuses on video game live streaming.  And Playstation Now, from Sony, allows PlayStation owners to instantly access a library of (mostly older) games for $99 a year, even as Sony promises to take that service “to the next level later this year.” Meanwhile, Apple will launch its own subscription gaming service, Arcade, September 19.

How Will Google Make Money off Stadia?

Although Stadia has been predicted to be the “Netflix of games,” the analogy isn’t a perfect one: Stadia is not primarily a subscription service. Gamers should expect to purchase, not rent, the games they play using the service (with the exception of some free releases). As Google’s director of games Jack Buser told The Verge, “We will sell these games like any other digital storefront.”

The service itself comes in two tiers:

  • Players can get Google Stadia for free via Stadia Base, which is due out in 2020 and will allow streaming of purchased games with stereo sound. The catch? Gamers won’t have access to free game releases when they occur.
  • To get all features, including 5.1 surround sound and access to the free game library, users will pay $10/month for Stadia Pro.

What we no one knows yet is what kind of advertising opportunities might exist with Stadia. Knowing Google, the company will figure out an ad model to support its online advertising business, which is fending off the rising popularity of Amazon Advertising and long-standing competitor Facebook. Stay tuned.

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