New Delhi: YouTube is making waves in the digital advertising landscape by experimenting with a new ad format for live streams. The video-sharing giant is testing picture-in-picture mid-roll ads, a less intrusive approach to monetization compared to traditional ad breaks.
According to a recent announcement, select viewers on specific devices will start seeing this new ad format in the coming months. The platform aims to allow creators to run ads without disrupting the live stream flow.
This isn’t YouTube’s first foray into live stream ads. In September 2023, the company introduced mid-roll ads for live streams, complete with a countdown timer and a delay option to give viewers and creators more control. The picture-in-picture format is the next step in refining this ad strategy.
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While traditional mid-roll ads might interrupt the viewing experience, the picture-in-picture approach is designed to be less disruptive. While the ad visibility might be reduced compared to full-screen formats, it could potentially offer a better fit for the live stream environment.
Early data suggests that mid-roll ads have been a boon for creators. YouTube reports that channels using automated live mid-roll ads have seen an average increase of over 20% in ad revenue per hour. This new picture-in-picture format could further incentivize creators to enable ads, expanding YouTube’s advertising potential.
As the experiment unfolds, the industry will be watching closely to see how viewers and advertisers respond to this innovative ad format.
