StreamElements announced a new “side sponsorship” tool called SideSpons at TwitchCon on September 22, aimed at helping online creators work with multiple brands simultaneously. Since 2016, StreamElements has supported livestreamers by connecting them with advertisers and brands, representing around 90 percent of all sponsored content on Twitch.
The company currently works with 20 million creators across platforms like Twitch, YouTube, and TikTok. SideSpons was introduced to creators at the event, although no official launch date has been set.
StreamElements’ business model is performance-based, meaning streamers earn money through conversions when their audience interacts with product links. SideSpons changes the traditional sponsorship approach by allowing creators to display multiple sponsors at once.
Instead of activating only a small portion of the audience interested in a specific brand, SideSpons enables viewers to choose from a bundle of sponsors, increasing the likelihood of conversions.
The motivation behind SideSpons is to help creators monetize a larger percentage of their audience by offering more conversion opportunities. StreamElements CEO Or Perry emphasized that many creators struggle to monetize their full audience, and this tool aims to help them get closer to 100 percent conversion.
StreamElements Introduces SideSpons at TwitchCon to Boost Creator Earnings with Multi-Brand Sponsorships
By displaying more sponsors, creators have the potential to increase their revenue significantly. However, some users are concerned that the value of individual sponsorships could be diluted by the presence of multiple advertisers.
StreamElements downplays concerns about dilution, arguing that conversions remain valuable regardless of how many sponsors are displayed together. Their performance marketing model minimizes risk for brands since they only pay for actual conversions.
Perry explained that this system makes it more appealing for advertisers, as they don’t face upfront costs and only pay when they see results. This approach alleviates the fears some brands have about the high costs and risks of working with streamers.
As StreamElements expands its advertising options, it faces potential competition from Twitch, which is also focusing on new ad formats to boost profitability under Amazon’s ownership. Twitch recently launched new initiatives, like an interactive Fortnite world called “Glitch,” aimed at increasing advertiser engagement.
Industry observers, like Max Bass from Gale agency, recognize that while SideSpons offers more control for creators, Twitch’s efforts in developing custom ad products could present a challenge for StreamElements moving forward.
