Ad timing (when in a broadcast an ad is shown, plus for how long or for how many ads) is a largely "invisible" skill in traditional media, but an important one for managing the flow of content delivery that almost no streamers have. Twitch broadcasters lack dedicated producers for this purpose, and the current algorithms that automatically deliver ads account for at most the time since the last ads a user watched. This leads to ad delivery that often interrupts streams very badly.
Twitch should develop more sophisticated algorithms that deliver ads at the least intrusive moments in streams. For example, someone playing rounds of a PVP game -> showing ads between rounds. Someone doing short/reset heavy speedruns -> show ads after 3 quick resets or 1 long one. A just chatting stream -> follow lulls in conversation.
Teach a sample of streamers the kind of producer skills that help them spot when an ad would be effective, follow up on the data of them showing those ads. Start sampling tags on the stream and the categories and information like compressed screenshots of the screen before and after an ad. Is there a prediction based on screenshots and streamer volume/speech that can tell you when chat is going to be very engaged? Use that as training data and start making a more sophisticated algorithm. That way you can avoid dropping an ad on top of what should be the highest engagement content, and put in the ads in the lulls and "victory fuzz" moments.

I've noticed when some ads play they take over the screen and the stream is moved to be above the chat until the ad ends. I think this should be reversed. Ads should take up that space above chat and then disappear; or, perhaps, they appear in the corner of the stream. If this were done, of course, ads would likely have be silent -- and I doubt any user would be against that.
Whatever the case, ads taking up the entirety of a livestream is just not acceptable and advertisers/Twitch need to figure out a better way to have ads without them being absolutely intrusive on the experience. Imagine you go to a live event and then for 10-30 seconds, your entire vision is blocked out: you can't see or hear anyone/anything except the ad. That's what it's tantamount to.

Many advertisements have an extremely dangerous level of flashing lights, and all of them pop up without warning and they can and do trigger epileptic seizures as a result even in perfectly safe streams.
This is an extreme concern for many people, including myself.
There is a specific advertisement that has so much flashing it can trigger a seizure even for someone using medication because of it being so hazardous, that ad promotes audible.
I tried reporting it to them for how dangerous it is but they do not accept feedback of a complaint category.

I would like to request that some sort of check be made on all advertisements for flashing and swift contrast transitions (since contrast transitions are also a type of trigger flash) and I would also like if a timer or warning somewhere on screen could be added to provide users with foreknowledge of when an ad will begin playing.

It is good to support twitch and streamers, but people with epilepsy may end up having to use adblockers if all the ads stay obnoxiously dangerous.

for different monthly rates users can get a monthly "ration" of subs and bits at a discount and are opted out of ads in a "the more you buy the more you save" and "use it or lose it" model. It should also expand upon the "sub tokens" model so people can use them towards different sub tiers.

ex of different tiers:
$14.99/mo = 3 sub tokens/mo, no midroll ads, 500 bits/mo
$24.99/mo = 6 sub tokens/mo, no mid or pre roll ads, 1000 bits/mo
$49.99/mo = 20 sub tokens/mo, no ads,
2000 bits/mo

additional suggestions: you can buy this through your prime gaming acct, and it updates your prime gaming badge from blue to bronze, silver, and gold respective to what tier you're opted in to. You can also get exclusive access to flash sales of extra sub tokens and bits (on cyber monday/black friday/holidays etc)

No advertisements for active chatters.

I think that when a streamer rolls an add or the auto rolling adverts pop up it can massively drive viewers and people invested in conversation away from the channel and forum.

A simple fix would be to not roll adverts to those actively chatting in the stream.

Say a 5 minute timer from last recieved message then roll an ad to that user and maximum of 1 ad to said user per user. Or a quick pop up box like the channel points warning users an advert is 30 seconds from rolling. Click on it and no advert, again you can pop a limit to this before an advert is forced. Once per stream seems fair to me.

That way your ads are rolling to passive users and it keeps your active positive contributers happy.

I completely understand why ads are on the platform. The revenue is helpful to keep the community alive and the advertising companies have an engaged audience to promote to. Win-win business wide. But user experience is key to keeping an audience to advertise to. Strike a good compromise and balance to how invasive the advertising feels.

So just like Facebook and WeChat allow a preview of games and ads that involve interactivity, perhaps Twitch can include support for playable ads in pre-roll ads or in-stream ad breaks.

Here is an example of what I am talking about provided by Facebook: https://www.facebook.com/business/m/one-sheeters/playable-ads

I have listed down all the benefits of including playable ads in Twitch on this shared Google doc: https://docs.google.com/document/d/1T2iNVrNcf8Dz8l09f0eiIEt0dMMLb9ggaiU-OqIOP7M/edit#

I am working on a project with a non-profit but we chose NOT to put our marketing on Twitch because they don't offer playable ads (unless they do and you can let me know) which previews a game and puts an interactivity component into their ads. Playable ads have been vastly successful in terms of audience reach, conversion rate and engagement not only for games, but also for brand remembrance and for other non-game products. Here is an example of McDonalds having their ad in a playable ad format: https://cdn-factory.marketjs.com/en/mcdonalds-playable-ad/index.html.

I thought I would create a new feature request for this reason. Let me know if you do support playable ads, in which case we would love to partner up.