Twitch CEO Dan Clancy has finally broken his silence on the ongoing frustration among streamers regarding reduced ad revenue, offering an explanation during a December 4 Patch Notes broadcast. His remarks shed light on the platform’s advertising dynamics and how content labels may influence ad placement.
Dan Clancy addressed the issue in response to a viewer who raised concerns about lower ad revenue on channels they moderate, particularly during the holiday season. This discussion comes after Twitch implemented new content labels in November, marking streams with political content or sensitive social issues.
According to Dan Clancy, advertisers’ preferences play a significant role in how ads are distributed on the platform. He explained, “There’s been a lot of confusion around this recently… a big thing that we need to do with advertisements is make sure we’re running ads against content that the advertisers want their content run against.”
He further elaborated that advertisers had expressed concerns about their ads appearing near politically sensitive topics or controversial social issues. As a result, Twitch reduced ad placements for such streams, causing some creators to experience a noticeable drop in revenue.
The issue of ad revenue reduction tied to content labels isn’t entirely new. In November, streamers like PirateSoftware pointed out that labeling streams as political or sexual might lead to diminished ad revenue, sparking widespread discussion. During the broadcast, Clancy even referenced PirateSoftware’s comments and highlighted another overlooked factor: the delay in ad revenue payments, which can cause confusion among streamers.
“There’s a lot of confusion. It’s absolutely the case that certain content does affect your ads,” Clancy reiterated. “Advertisers, at times, adjust their controls regarding the content they want to see. But in general, we have not seen this big shift,” he added, aiming to quell fears of a platform-wide advertising crisis.
Merritt “merrykish,” Twitch’s Director of Community Marketing, also addressed misinformation spreading on platforms like X (formerly Twitter). She noted that not all creators are experiencing significant ad revenue changes and emphasized that ad outcomes vary widely.
These comments come amidst a wave of criticism from streamers who reported being demonetized after labeling their streams with terms like “Iran” or “Venezuela.” Adding to the controversy, Bloomberg recently reported that three major companies pulled their ads from Twitch following a series of allegations against the platform.
The situation highlights the delicate balance Twitch must strike between satisfying advertisers and supporting creators. While Clancy’s remarks provide some clarity, the issue of ad revenue distribution remains a point of contention within the streaming community.