Twitch, the live streaming video platform that primarily focuses on video games was acquired by Amazon in August last year for US$970 million.
Watching video game footage has become an increasingly popular activity among many gamers and non-gamers alike and it is evidenced through the success of Pew Die Pie, a 25 year old video game commentator who has the most subscribed Youtube channel.
Therefore, it makes sense that many would consume the content on Twitch, given the rising trend of watching live video game footage. What I find interesting is how Twitch partners (broadcasters) earn money from this and how marketers/companies work together with them to do so. Aside from getting viewers to subscribe to a person’s Twitch channel, one could also obtain revenue through advertising which come in the form of:
- Commercials – which would be played in between play times. Twitch partners would generally play 3-4 ad commercials each hour.
- Sponsored content – most Twitch partners have a webcam to show themselves and they would generally wear/use sponsored content that audiences can observe.
- In-game advertising – this form of advertising, can and should be improved in my opinion. What this form of advertising means is basically, placing specifically targeted ads in the actual game that the broadcaster is playing. This could mean the ‘character’ in the game using sponsored content (eg. an in-game character wearing a company’s shirt).
Overall, I feel that to appeal to the right audience (gamers in this instance), marketers must be able to target them effectively by using the right methods. Only then would they be able to get more eyeballs to focus on their brand/product to increase brand awareness, which possibly leads to purchases in the future.
