What is a Stream Overlay?

Streamers often try to stand out from the competition by customizing the appearance of their live stream.

One’s personal touch adds a lot to the presentation of their channel, but it is not meant to replace skills and gameplay style.

While watching live streams, you may notice transparent in-game tiles with eye-catching visuals adorning the screen’s edges.

Those unfamiliar with the term “stream overlays” should look them up. Here’s more information on these personalized elements.

What is a stream overlay?

A stream overlay is a design that consists of graphics that are displayed over gameplay. It is set to a specific opacity value to prevent an overlay from interfering with the game.

It’s also been adjusted so that viewers can still see the information displayed on it. Overlays can take many different forms, such as chats, recent events, stream alerts, and so on.

Many people use them as part of their branding to create uniqueness and identity, which helps a channel stand out from the crowd.

Consider coming across two live streams: one that is plain and simple, and the other that is embellished with overlays. We’re sure you can guess which one will entice you to learn more about it.

The first impression is critical because it can make or break a chance. In this case, if a viewer comes across a rather basic stream, they are likely to leave quickly or, worse, to search for another stream.

Regardless of the streamer’s ability to entertain people, overlays go a long way toward keeping fans interested.

It’s also worth noting that the thumbnail in the search results would be a live stream setup. People will be tempted to click if it is ornate or futuristic.

What is a Twitch overlay?

An overlay can be applied to a live stream regardless of the platform to which it is broadcasted.

As a result, a Twitch overlay is simply an overlay used on someone’s Twitch stream. This category includes any graphic that floats above the game capture.

Several people may be in the same space, but they are pushed to the sides to keep the middle area clear because it is dedicated to the game.

Overlays, such as Twitch alerts, alert sounds, stream status, and more, can be static or animated. They must be organized so that they do not clog the screen.

Why your Twitch overlay is your brand?

Software encoders are gaining popularity because they allow gamers to customize their live stream in an infinite number of ways. They can include appealing graphics, which should increase retention.

Seeing a streamer demonstrate their impeccable skills is likely to be insufficiently entertaining for some viewers.

The live stream layout should be improved so that they are willing to stay. Overlays help with personal branding by adding credibility and a sense of identity.

This way, the audience will remember what distinguishes a channel from the hundreds of others available.

Why do you need a Twitch overlay?

Overlays serve a purpose; otherwise, streamers would not use them. Each one is tasked with a distinct function.

A chat overlay, for example, displays the chat’s conversation activity. There are also banner overlays that provide social media statistics such as the number of followers and most recent subscribers.

Alerts, which can notify you of milestones or events, are another popular type of overlay. Simply put, overlays are not required, but many streamers use them, given how effective they are at raising a channel’s profile and value.

Because it is more efficient, streamers frequently incorporate ready-made overlays into their streams.

If you have a background in graphics design, you can make your own overlays.

However, this decision may face challenges, such as creating original artworks that do not potentially infringe on anyone’s copyrights.

With that in mind, it’s critical to exercise extreme caution when drawing inspiration from overlays that existed before yours.

Are PNG files the only file types that work?

PNG files have the benefit of being highly editable in Photoshop. That is why they are the preferred method for creating overlays.

However, PNG is not the only image format that can be used. JPG can be used as a substitute, but it lacks transparency support.

As we all know, transparency is a distinguishing feature of the average overlay. And this is required to avoid obstructing the game capture.

Given this, we should rule out JPG because the lossy file format does not fit the bill.

Will my overlay work on any gaming platform?

Yes, your overlay works with any gaming platform most of the time.

However, when considering using an overlay, make sure it is compatible with the live streaming software.

The editing takes place within the software. When everything is in order, the final step is to go live.

First, you must connect your account (Twitch, Facebook, or another) to the encoder.

If this is a success and you have no trouble adding overlays to the frame, they should appear on the broadcast as well.

How do I use my overlay?

Overlays are configured differently for each program.

In Streamlabs Desktop, go to the Settings tab in the upper right corner. You should now navigate to ‘Game Overlay.’

Here are some changes that should be made. Because it is an optional feature, you must first enable it.

The toggle is located next to the list of overlays that can be added. The opacity adjustment can also be found in the same section.

When you’re finished entering values, click ‘Done.’ You should now be able to see them on the screen.

Meanwhile, in OBS, the process begins with the ‘Sources’ box.

Choose the type of overlay you want to add from the drop-down menu, make any necessary adjustments, and then click ‘OK.’

Overlays can be added to the Lightstream via third-party integration. This option allows you to install overlays from multiple sources.

The complete list is available on the official website. Assume you’ve created an overlay for Streamelements (one supported service).

Simply navigate to ‘My Overlays’ in Streamelements and copy the overlay URL. For the best quality, set this to 720p.

Return to Lightstream, click the ‘Add Layer Button,’ and choose ‘3rd party integrations.’ Choose StreamElements from the drop-down menu and paste the URL into the box.

That’s all there is to it; the overlay will now appear on the stream.

We’d create a comprehensive tutorial for each of the tools above, as well as XSplit and OBS. Please stay tuned for the next live broadcast.

Wrap up

So, what exactly is a stream overlay?

The name speaks for itself. It’s an overlaid element that appears above the gameplay.

Overlays are any static images or animations that occur during a live stream but are not part of the game. They’re used for stream branding to help build a streamer’s image.

There’s a reason why top streamers each have their own distinct stream design. This is due to their desire to be recognized by their audience.

Branding also aids in the development of trust among loyal fans, which is essential if you intend to profit from it in the future.

On the other hand, Overlays are useful for more than just branding.

Above all, they can improve your live streams by incorporating interactive elements.

A live stream would be lifeless without them because it only shows the streamer’s face. Thanks to software encoders, you can easily add these awesome additions to streams.