We’re often asked about Influencer and Streaming campaigns and what the ROI from streaming really is.
In this post we provide simple calculations to help you determine your own ROI from streaming and how it compares to traditional banner or display advertising.
How stream overlays are different
Display advertising has been the default type of digital advertising for several years. This has started to change with the growth of online streaming across platforms like Twitch and Youtube. Streamers are now able to display messages, banners, logos and other content as part of an overlay. They sit as a layer on top of the game experience.
Confirming default values
To help with the calculations we are going to confirm some default values. These values will be for things like the number of times a banner or logo is displayed on a stream per hour.
Number of times per hour a logo is displayed on a stream overlay = 6
Number of hours streamed in a week = 10
Traditional display CPM = £7 GBP / $10 USD
Average Concurrent Viewers (ACCV) = 2000
The number of times per hour as 6 means that the same logo or banner will be displayed every 10 minutes.
Simple ROI calculations
If the logo is displayed 6 times per hour and a streamer completes 10 hours of streaming we have the calculation:
6 times per hour * 10 hours = Logo displayed 60 times per week
We then multiply the result by the average number of viewers (ACCV) to give:
Logo displayed 60 times * average number of viewers of 2000 = 120,000
This 120,000 would be the equivalent of total impressions in the world of display advertising.
Using a CPM (cost per thousand impressions) of £7 GBP / $10 USD we can then calculate the cost:
120,000 impressions / 1000 = 120 sets of 1000 impressions
120 sets of 1000 impressions * £7 or $10 USD cost per 1000 impressions = £840 GBP / $1200 USD
It is important to note that the CPM is high because of the audience. The gaming audience is highly prized due to the demographics and levels of disposable income. The cost also highlights the level of competition between brands to display adverts to this audience.
Now that we know the cost of the impressions generated from the 10 hours of streaming we can start to calculate the ROI.
Let us assume every impression has a basic media value of 15 pence / 20 cents. From this we can multiply by the total number of impressions for the week which was 120,000.
120,000 impressions * 0.15 pence or 0.20 cents = £18,000 GBP or $24,000 USD
From a spend of roughly 1000 GBP / USD we have generated roughly 20,000 GBP / USD in media value.
Important notes – Media Value vs. Cost
The calculations above are to determine the media value generated from the calculated cost of having your banners or logos displayed on streams. These are simple calculations to be used as a guide and to provide a framework for your internal conversations. Companies like Nielsen provide a more complete picture of the media value generated from streaming. They dig into the actual placement of a logo on the screen, how long the logo is displayed, whether there are other competing logos on the screen at the same time and several other factors.
If you are interested in a more in-depth analysis of media value from a specific esports tournament we would be happy to connect you with our friends at Nielsen.