Amazon-owned Twitch introduced a new advertising format called “The Glitch” in Fortnite, with Domino’s and Peloton as launch sponsors. 

Announced at TwitchCon San Diego (Sep. 20-22), The Glitch creates custom-branded playable worlds within Fortnite to offer gamers a less intrusive advertising experience.

Twitch and Amazon Ads collaborate with game studio Look North World to develop brand-specific environments. 

In the Domino’s space, players can interact with a fully modeled pizzeria and participate in pizza parties that restore their character’s health. The initiative seeks to integrate advertising more seamlessly into gameplay, moving away from disruptive in-game ad formats.

Popular Twitch creators will promote The Glitch, driving viewers to these custom worlds and providing an influencer marketing component. The new offering strengthens Twitch’s connection to Fortnite, a game closely associated with metaverse marketing and frequently streamed on the platform.

“We are always looking for innovative ways to highlight our brand for critical audiences, and this interactive galaxy is a logical path given that pizza and gaming have a long history of going hand in hand,” said Kate Trumbull, Domino’s SVP & Chief Brand Officer, in a statement.

Look North World, led by Alexander Seropian, co-founder of Halo developer Bungie, is responsible for building the custom worlds. This move comes as other gaming platforms explore new advertising avenues. 

Roblox, for instance, began running video ads within games in May and recently partnered with Shopify to enable in-game purchases.

An End to Twitch’s Financial Struggle?

The Glitch arrives at a crucial time for Twitch. 

A recent report revealed that just 16% of games profit from sponsored Twitch streams.

In July, the Wall Street Journal reported that the platform is still unprofitable and has seen a slowdown in new user sign-ups following a pandemic-induced surge. According to documents reviewed by the WSJ, Twitch accounted for less than 0.5% of Amazon’s total 2023 revenue.

While Amazon’s overall ad business has become significant, it has also experienced a deceleration. In Q2, ad sales grew 20% year-over-year to $12.77 billion, falling short of analyst expectations.