Daily Insights

Don’t Sleep on Twitch

By: Alizah Asif Farooqi | May 30, 2019

Three years after gameplay streaming site Twitch launched in 2011, Google negotiated a $1 billion acquisition deal. Before officially being handed over, Amazon swooped in with a competitive all-cash bid, ultimately acquiring the site. Now, Amazon reaps the benefits of having the hugely popular site under its wing. Here’s how brands can do the same.

By offering free Twitch access to new and existing Prime members, Amazon finds more avenues to incentivize Prime memberships. Twitch Prime offers everything from ad-free viewing and exclusive emoticons to Prime Day deals on games and in-game loot. As such, on many popular content creator Twitch pages, an Amazon plug-in displays product listings. Not surprisingly, users who click on a product are taken directly to Amazon product pages. In fact, Twitch drove more desktop traffic to Amazon’s homepage than any other site in the past year—being responsible for over 15% of all referral traffic to Amazon’s desktop site.

As the platform continues growing, brands would be wise to take advantage of Twitch’s merchandising opportunities. In March 2018, a single streamer drew in a record-breaking 628,000 concurrent views when content creator Ninja played Fortnite with Drake and Travis Scott. In 2018, Twitch drew in 15 million daily viewers. Twitch drives site traffic for more than 40% of brands studied in Gartner L2’s report on the topic, namely for gaming brands and gaming-adjacent brands that sell computers and computer accessories. ASUS and PlayStation drew in the most traffic from Twitch in the past year, each pulling in over 300,000 visitors. These brands often forge partnerships with content creators who feature the brand’s products, with hyperlinked preferred gear lists below the videos. Brands can also merchandise on the platform through in-stream advertising and preroll video spots.

Brands not only compete with each other, but also game manufacturers and other companies targeting a young and highly engaged demographic. Consumer electronics brands account for nearly one-fifth of all ads served on Twitch in the past year, with Xbox capturing the largest share of voice in terms of display advertising, accounting for about 6% of ads served.