Valley

The Basics of Twitch and YouTube Sponsorships

cole-driscoll-author
Cole Driscoll

Overview

Video game content creation and streaming can be a nice pastime, but with enough work and commitment, you can turn it into a serious business. At first, you can start earning money through ad breaks, but eventually, as you grow, you will begin receiving sponsorship offers. However, if you are a business that wants to work with Twitch streamers, finding the right option can be difficult. You want the streamer to maximize their channel earnings while also reaching as many people as possible. Here are some important things to know before you get started with streaming sponsorship as a content creator or business.

Twitch sponsorship prices

Like many other platforms, Twitch will have a different cost per mille (price for 1000 views) according to the category, where viewers are located, and when the sponsorship takes place. It’s possible to have a streaming CPM of $0.25 or up to $4 for 1000 views. On average, according to Stream Elements, a streamer makes around $2.40 for each hour they stream, which leads to $2.60 for 1000 impressions.

Businesses, who want streamers to promote their products, can go for a 30-to-90-day contract and pay for a specific number of concurrent viewers or CCV. When businesses choose to work with Twitch streamers, the average CCV varies between $0.80 to $1.20 for CCV each hour. If there is a streamer who has 100 concurrent viewers, businesses typically will pay them anywhere from $80 to $120 per hour. The more concurrent viewers a person has, the more they will and should ask per stream.

YouTube sponsorship

If you’re a business looking to sponsor YouTube creators, then on average, you can expect to pay a CPM rate of $1.40. However, the amount paid per niche will vary as well since there are various factors affecting this entire process. Location, video length, but also engagement rate, category, monetization systems used, and how long these videos are will always play a major factor.

The most profitable niches on YouTube are travel, video games, fitness, cooking, beauty and makeup, lifestyle, motivation, ASMR, comedy, but also making money online, digital marketing, personal finance, educational content, tech, or fashion. Picking a category that fits your channel or business can help generate the most value for your sponsorships.

Different payment structures you can use for your sponsorships

  • If you're a business, fixed fees are very common because you don’t have to worry about going over your budget if the stream reaches more concurrent viewers. Both parties agree to a fee, which leads to consistent Twitch or YouTube earnings for creators. However, streamer beware because that also means that if stream performance is better than expected, streamers will not receive any extra compensation.
  • Cost per Install or CPI is a fee that streamers receive if people install the app/game they promoted. While this can be the only payment option, it’s usually combined with the fixed fee or CPM, and it’s used as a bonus.
  • Cost per Action shows how many conversions the streamer made. Basically, it involves the amount of people who either purchased the product/service, signed up with their email, etc. It’s not a common sponsorship approach, but it can be used sometimes.
  • Cost per mile or how much businesses need to pay for 1000 views. It’s a very popular sponsorship metric, because it’s easier to quantify, and you can also designate a specific contract period as well.

Conclusion

Each sponsorship option can be great, depending on the niche, location, and number of concurrent viewers. It’s important to ensure that brands and creators pick partners that are a natural fit for their brand or channel. For example, a pirate-themed creator is bound to generate more conversions for a game like Skull and Bones or Sea of Thieves.

Choosing the right niche is imperative as a brand or creator, and both parties also want to focus on content that has great engagement rates with audiences. This strategy has the chance of increasing conversions while also enhancing the overall quality of the sponsored stream. If you’re a brand looking for streamers or a content creator who wants to partner up with cool emerging brands, don’t hesitate and visit the Valley website today, the ultimate place for streaming tips and sponsorships!