make the ad run above chat instead of the stream
Ads are intrusive, annoying and serve no real value to a viewer or creator in a live streaming platform. But if they must exist, why not make them not so intrusive to the experience?
Currently the PIP solution does nothing good for either party. It still essentially shuts off the stream on a whim and if people don't know where to look, it's all but gone for the time the ad is running. Why not put the Ad window where the stream window goes now, and let the stream keep running as normal, so we continue our engagement with the creators and enjoy our time using the platform.
Would it not be better to put ads over the chat like the stream window in Watch Party? Streams would be still running and everybody would let it run cause it would not ruin the stream experience.
Instead of interrupting the stream with an ad and minimizing the stream above the chat, flip it. Keep the stream running normally, but periodically add silent ads above the chat. If the viewer wishes to see more of the ad, they can click the ad to play a full version (and maybe be rewarded with bits that can be used with the current streamer), with the stream minimized above chat like it currently is. This eliminates unintended interruptions and still allows advertising space.