YouTube's First Position Ads: Benefits, Caveats, and Tips - True Interactive
Not every development in Google’s advertising repertoire entails a huge leap forward with AI. A case in point is YouTube expanding its First Position ad offering. This allows advertisers to secure the first in-stream ad viewers see when they start watching YouTube content. This ad placement is designed to maximize visibility and engagement by capturing audience attention at the beginning of their viewing session, a moment when users are typically most engaged. This is the kind of refinement Google needs to make given YouTube’s importance: for Q3 2024, YouTube generated $8.92 billion in ad revenue, marking a 12% year-over-year (YoY) increase from Q3 2023.
Benefits of YouTube's First Position Ads
Initially, First Position ads were limited to YouTube Select inventory, which consists of premium content from top creators and channels. However, with this recent expansion, these ads are now available across all YouTube content through Google’s Display & Video 360 platform. This broader reach allows advertisers to target a wider audience across various types of content, not just premium selections.
Previously, First Position ads were sold at a fixed CPM (cost per thousand impressions) rate. With the expansion, YouTube has shifted to a dynamic CPM pricing model, providing more flexibility for advertisers to adjust their spending based on demand. This change allows advertisers to potentially lower costs during periods of less competition while still securing prime ad placements.
Usage and Recommendations for Advertisers
First Position ads can now be used in both in-stream and YouTube Shorts formats, which increases the potential reach of these ads. However, it’s important to note that while these ads are guaranteed to be the first in-stream ad during regular YouTube sessions, they are not guaranteed to appear as the first ad on YouTube TV.
Advertisers can use the Instant Reserve feature in Display & Video 360 to book First Position inventory without negotiation. This feature streamlines the process, allowing for immediate reservations and quotes.
Based on YouTube’s recent expansion of its First Position ad offering, here are some recommendations for advertisers using this feature:
- Utilize First Position ads during high-impact periods to maximize brand recall and engagement
- Monitor competition and adjust spending during periods of lower demand to optimize costs
- Consider targeting different audience segments with in-stream and YouTube Shorts formats
- Use Instant Reserve for time-sensitive campaigns to secure prime placements efficiently
- Measure broader brand impact beyond CPM by tracking metrics like ad recall and engagement
Conclusion
The expansion of YouTube’s First Position ads offers advertisers an enhanced opportunity to capture audience attention at critical moments across all types of YouTube content. With dynamic pricing and broader availability, this feature is particularly useful for high-impact campaigns such as product launches or major cultural events. However, brands must be prepared for increased competition and should strategically plan their use of this format to ensure cost-effectiveness and maximum impact.
True Interactive can help you maximize the value of First Position ads. Learn more about our capabilities on our website.
