You know the feeling, right? You're chilling with your favorite streamer, hyped to see what they're playing next, and BAM! Ad break. Ads are kind of a drag, but they keep the stream train rolling for creators. So, how much do these things actually pay? We're gonna dive into how Twitch doles out ad cash and some recent changes that might affect both streamers and viewers.

The Basics: CPM and Fixed Payouts

Twitch pays creators based on a metric called CPM (cost per thousand views). For every 1,000 views, streamers receive a fixed amount. The exact rate can vary among creators and depends on factors like the time of year. During the holiday season, advertisers are often willing to pay more, which trickles down to the streamers.

In early 2022, Twitch introduced the Ads Incentive Program, available only to Partners. This program offers fixed payouts to creators who agree to specific streaming conditions. For instance, a streamer might choose from the following incentives:

1. $100 incentive: Run two minutes of ads per hour and stream for 40 hours in the month.
2. $300 incentive: Run three minutes of ads per hour and stream for 40 hours in the month.
3. $500 incentive: Run four minutes of ads per hour and stream for 40 hours in the month.

The required stream hours are determined based on the individual creator's average from previous months.

Recent Changes

Twitch has announced significant changes to its ad revenue model, aiming to benefit creators:

1. Percentage-Based Revenue: Twitch will now pay 55% of ad revenue to creators (after necessary fees). This represents a potential increase of 50-150% in earnings for most streamers.

2. Ad Removal for Non-Affiliates and Non-Partners: Ads will no longer appear on channels that are neither Affiliates nor Partners.

3. Undisrupted Gameplay Views: Picture-by-picture viewing of ads will occur during gaming streams (excluding non-gaming categories and pre-roll ads). This ensures that gameplay remains uninterrupted.

4. Customizable Pre-Roll Ads: Affiliates and Partners can disable pre-roll ads by opting for regular ad breaks. The parameters are as follows:
- 90 seconds or longer ad break = 30 minutes of disabled pre-roll ads.
- 60 seconds or longer ad break = 20 minutes of disabled pre-roll ads.