YouTube is revamping mid-roll ad placement

YouTube will change how mid-roll ads are placed in videos starting May 12. YouTube aims to improve the viewer experience and increase revenue opportunities for creators.

How it works:

• YouTube allows creators to manually place ad breaks or let the platform auto-insert them.
• Creators will be able to combine manual and automatic ad placement, with YouTube’s system potentially overriding manual selections if it finds a more natural break.
• The new system aims to improve automatic detection, ensuring better placement while also offering a combined manual and auto option.
• A new feature will flag “interruptive” manual ad slots, allowing creators to adjust them.

Why we care. The update will shift ad placements to more natural breakpoints, like pauses and transitions, instead of interrupting sentences or action sequences — potentially reducing viewer drop-offs. However, with it being an additional setting and not a replacement for the old setting, you should be ready to revert to the setting that works best for your campaign.

The impact:

• YouTube’s tests found that channels using both auto and manual mid-rolls saw a 5% revenue boost compared to those using manual placements alone.
• Older videos (uploaded before Feb. 24) with manual mid-rolls will automatically get new ad slots at natural breakpoints.
• Creators can opt out of additional placements via YouTube Studio, but interruptive mid-rolls may lead to lower earnings after the update.

What’s next. These changes suggest YouTube is betting big on its automated ad detection, nudging creators toward auto-placement for a more seamless experience — and more ad revenue.