Google’s first quarter 2024 earnings call included discussion of a new ad format being piloted on YouTube where ads appear when users pause videos. This “pause ad” format was reported to be performing well and drawing premium ad rates. The pilot program had focused exclusively on ads shown during pauses in YouTube’s TV application.
Announcements and Events:
- Google began piloting a new “pause ad” format on YouTube’s TV app. These ads would appear during moments where users paused videos.
- As reported by Phillip Schindler, Google’s chief business officer during an earnings call, the pause ad pilot saw “strong traction” in Q1. Schindler stated these non-interruptive ads were “commanding premium pricing from advertisers.”
- The pilot program has only involved testing pause ads on YouTube’s TV platform. However, given the positive reporting of its performance, expansion to additional YouTube platforms may occur going forward.
As the primary source of revenue for both YouTube and Google is ad sales, it is reasonable the companies would investigate new ad delivery methods. However, overly intrusive formats risk degrading the user experience over time according to observers. The facts presented seek to outline announcements and events neutrally without subjective analysis.
