YouTube Rolling Out Unskippable Ads on Connected TVs, Becoming More Like a FAST Service
Advertisers got a big win this week at YouTube’s annual Upfronts presentation. The video hosting platform announced that it would soon introduce unskippable, 30-second ads on videos shown on connected TVs (CTVs). The ads will appear on YouTube Select videos, which are videos that YouTube has deemed to be its top content. This change does not impact any aspect of the company’s live TV streaming service YouTube TV.
Previously, viewers of YouTube videos on smart TVs or streaming devices connected to a TV were in the form of two, back-to-back 15-second ads. Usually, viewers could skip the ads after watching for a few seconds. YouTube says the extended runtime for commercials will allow marketers to “use existing assets in front of the most-streamed content.” This is a major bonus for advertisers as YouTube remains the biggest video streaming service in the world and an increasing number of people are turning to the platform on their TVs.
“More and more, viewers are tuning into YouTube on the biggest screen in their home,” YouTube CEO Neal Mohan said. “Viewers — especially younger viewers — no longer make a distinction between the kind of content they’re watching.”
Mohan’s point about the way viewers are watching content on YouTube is reinforced by an April survey, which showed that 35.2% of consumers aged 18-44 watch YouTube on a smart TV or connected device more than once per month. That’s a higher percentage than what any premium streaming service, including giants like Netflix and Disney+, can claim.
YouTube’s other big announcement related to ads at its Upfronts was its introduction of pause ads. When paused, the video a user is watching will be shrunk, and the remaining space will be filled with an ad. YouTube’s example ad shows QR code that users can scan, accompanied by some text and a “Dismiss” button that will banish the ad.
The use of pause ads has been spreading across the video streaming industry of late. In December, Paramount+ began its own experiment with pause ads, after seeing streamers like Hulu and Peacock use them for years. Pause ads are one of the most unobtrusive means of advertising, though users who experience them are still likely less than thrilled to see them pop up.
The changes in advertising on YouTube mean the service is becoming a bit more like a free ad-supported TV (FAST) hub. Obviously, YouTube is a video hosting service, not a FAST platform, but 30-second unskippable ads have been a staple of traditional TV advertising for decades. By rolling out this type of ad to viewers watching on connected TVs, YouTube is bringing the overall user experience closer in line with that of FAST services like Pluto and Tubi.
Perhaps the company considers it good practice for when it launches a FAST service of its own. It was reported in January that YouTube was testing a FAST channel hub with a select group of users, and this move to roll out 30-second ads on YouTube Select content for CTVs could be a sign that the company wants to take the next step in those efforts.
On the other hand, it could just mean that YouTube saw an opportunity to make more money and took it. Time will tell, but one way or the other, YouTube viewers on CTV devices should expect to see the unskippable ads rolling out very soon.