YouTube is rolling out its mid-roll ad placements, aiming to improve the viewing experience while helping creators maximise their ad revenue.
Starting May 12, 2025, YouTube will introduce more refined mid-roll ad placements at natural breakpoints within videos, such as pauses and transitions, while reducing interruptions in the middle of sentences or action sequences.
Currently, YouTube boasts over 2.5 billion users, with more than a billion hours of content consumed daily. In Q4 FY24 alone, YouTube’s ad revenue reached an astounding $72.5 billion.
What’s changing? The platform will automatically update older videos—uploaded before February 24, 2025—that have manually placed mid-rolls, adding additional ad slots at natural pauses. Creators who prefer full control over their ad placements can opt-out via YouTube Studio.
“If you only use automatic mid-rolls for your videos, this change doesn’t impact you. Keep doing what you’re doing,” YouTube announced. However, those who manually place ads are encouraged to review their placements with the help of new tools designed to improve mid-roll strategies.
New features include feedback in YouTube Studio, a tool that will inform creators if their mid-roll ad slots are interruptive, allowing them to make adjustments.
And, Automatic Ad Slots where Creators can continue manually placing mid-rolls while allowing YouTube to insert additional, well-placed ad slots for a balanced ad experience.
According to YouTube, early testing showed that channels using both manual and automatic mid-roll placements saw an average 5% increase in revenue compared to those relying solely on manual placements.
According to Justin Lawrence, Platform Monetisation Head at Dot Media, “Previously, excessive ads led to audience drop-offs, now ads appear at natural pauses for smoother viewing. In mid-2024, YouTube reported a 5% revenue increase for channels employing both manual and automatic mid-roll placements.”
He said, although automation enhances monetization, a human review remains advisable to ensure ads are placed effectively. This update represents a significant step forward in balancing revenue growth with optimal content engagement.
For those who already place manual mid-rolls at natural pauses, YouTube suggests using the feedback tool to double-check ad placements. However, those who insert mid-rolls at fixed intervals without considering pauses should take advantage of the new tools.
“If you are only using manual mid-rolls and they are placed in interruptive parts of your videos, you may see a decrease in revenue as we improve mid-roll quality after May 12, 2025,” YouTube cautioned.
Anirudh Sridharan, HashFame CEO—an influencer collaboration app for marketers, said "YouTube’s new mid-roll ad placement is a game-changer for creators still figuring out monetisation. Many don’t know where to place ad breaks for maximum impact, and it’s often intuitive rather than data-backed. This update helps long-tail creators optimize revenue without needing deep analytics expertise."
Experts revealed, "Larger content creators or educational channels with dedicated analytics teams may see minimal impact from this update. They already analyze video completion rates and audience drop-off points. However, for smaller or less data-savvy creators, this tool will significantly enhance their ability to monetize effectively."
Will this affect revenue?
While some creators may worry about earning less, YouTube believes the shift will be beneficial in the long run. The platform states that reducing disruptive ads can help retain viewers, ultimately leading to better ad performance and higher earnings.
“We believe this change will increase the overall mid-roll revenue opportunity for creators,” the blog post said.
For those wondering if YouTube will turn on mid-rolls for videos that don’t have any, the answer is no. The platform clarified that it will only add automatic ad slots to videos that already contain manually placed mid-rolls.
Last year, YouTube launched its Shopping Affiliate Program in India, allowing creators to tag products from Flipkart and Myntra in their videos, shorts, and livestreams.