Quick recap: Amazon is appointing a new ad executive at Twitch to revamp its ad sales capabilities and integrate them more deeply within Amazon’s advertising division. Viral Thacker, who previously worked on Amazon's corporate development and emerging ad businesses, will lead a consolidated ad sales and product group at Twitch, the Information reported, citing an internal memo. Thacker will report directly to Alan Moss, Amazon’s global ad sales head, according to the report.

What it means: The reorganization marks a continuation of efforts that began in 2020 when Amazon started merging Twitch’s ad operations with its broader advertising unit. By placing Thacker in this role, Amazon aims to enhance Twitch's value as part of its own video ad offering. The company's video ad portfolio now spans across Twitch, Prime Video, Freevee, and FireTV, collectively reaching around 175 million viewers in the U.S. each month. The integration strengthens Amazon’s position against YouTube and Disney.

Why it's important: The push to elevate Twitch’s ad presence comes amid broader challenges. Acquired by Amazon in 2014 for nearly $1 billion, Twitch is still struggling to turn a profit due to high operational costs from live-streaming, content moderation, and exclusive creator deals, according to The Wall Street Journal. Its ad and commerce revenue hit $667 million and $1.3 billion respectively last year, but expenses remain steep. Under CEO Andy Jassy, Amazon has pushed for profitability across its units, putting Twitch at risk of being sidelined. The livestreaming platform is now focusing on mobile engagement, introducing short video snippets to compete with TikTok and YouTube Shorts.