Overview
Starting May 12, 2025, YouTube is rolling out updates to its mid-roll ad system, aiming to enhance ad placement for a more natural and less disruptive viewing experience. The platform will now prioritise inserting ads at logical breakpoints, such as pauses and scene transitions, while reducing interruptions in moments like mid-sentence dialogue or key action sequences.
How Mid-Roll Ad Placement is Changing
Currently, creators have two options for mid-roll ads: they can either manually select where ads appear in their videos or allow YouTube’s system to decide placement automatically. With this update, YouTube is refining its algorithm to improve ad positioning for those using automatic placement. Additionally, manual users will also see expanded options.
YouTube’s data suggests that this new approach could lead to better revenue generation. A test conducted in July 2024 found that channels using both automatic and manual mid-roll ad placement saw an average revenue increase of over 5% compared to those relying solely on manual placement. However, YouTube cautions that if manual mid-rolls are placed at disruptive points in a video, revenue might decline once the new system takes effect.
More Control for Creators
To offer more flexibility, YouTube is introducing a hybrid ad placement option. Previously, creators had to choose between manual or automatic placement. Now, they can combine both approaches — placing ads where they see fit while also allowing YouTube’s system to optimise ad breaks for a smoother experience.
Under this new system, if YouTube’s algorithm identifies a more suitable placement than a creator’s manual selection, it may adjust accordingly to minimise disruption while maintaining ad revenue opportunities.
Additionally, YouTube is rolling out a feature that will notify creators if their chosen mid-roll placements are considered disruptive, giving them a chance to reposition ads for a better viewer experience.
Why This Matters
This update signals YouTube’s confidence in its ad placement technology, suggesting that automated detection may be more effective than manual selection in optimising both viewer engagement and ad revenue. By encouraging creators to rely more on its system, YouTube aims to strike a balance between user experience and monetisation.
As part of this shift, YouTube will also update older videos (uploaded before 24 February 2025) by adding automatic mid-roll ad slots at natural breakpoints.
For creators and advertisers alike, this change presents an opportunity to test new strategies and potentially improve ad performance. If YouTube’s system successfully refines ad placement without compromising user experience, it could lead to better engagement and revenue in the long run.