Better breaks, bigger bucks: YouTube’s mid-roll ads just got smarter

Significant changes are coming to YouTube’s mid-roll ad system, to improve the viewing experience while helping creators earn more. Starting May 12, YouTube will revamp how mid-roll ads are placed. Instead of interrupting a sentence or cutting off important moments, as will now appear at more natural breakpoints in videos.

This update introduces a new hybrid approach, allowing creators to combine both manual and automatic ad placements. This gives them greater flexibility while ensuring ads appear at optimal points for viewer retention and monetization.

Key updates to mid-roll ad placements

YouTube is redesigning how mid-roll ads appear in videos to strike a balance between creator earnings and viewer satisfaction. Here’s what’s changing:

• Ads at natural breakpoints: Instead of disrupting action-packed scenes or cutting off dialogue, mid-roll ads will be strategically placed at natural pauses, such as scene transitions.
• Automatic ad slots for older videos: For videos uploaded before February 24, YouTube will automatically adjust ad placements for creators who previously used manual mid-roll ads.
• Opt-out option for creators: Creators, who prefer to place ads themselves, can disable automatic placements in YouTube Studio and retain full authority over ad placement.

These improvements mean fewer mid-video disruptions for viewers while still helping creators earn more from their content.

New creator tools to optimize mid-roll ads

To help creators seamlessly adapt to these changes, YouTube is introducing two powerful tools:

• Mid-roll ad feedback tool: YouTube Studio will flag ad placements that might be “interruptive”, allowing creators to fine-tune their mid-roll ads and improve the viewer experience.
• Hybrid ad placement system: Creators will no longer have to choose between automatic and manual placements. With the hybrid system, they can use both—keeping their manual placements while YouTube’s AI adds extra ad slots that don’t interrupt the flow.

Thomas Kim, head of the YouTube Partner Program, explains:

“Creators in the past had to choose between automatic or manual mid-rolls, and now we’re going to give you the option to do both.”

These tools give creators greater control over their ad strategies, helping them balance revenue generation with audience retention.

How will this impact creators?

The impact of these changes will vary depending on how creators currently manage their mid-roll ads:

• Creators using automatic mid-rolls: No action needed! Ads will continue being placed automatically at natural breakpoints.
• Creators manually placing mid-rolls at natural pauses: Minimal disruption. However, YouTube’s new feedback tool will help fine-tune placements for an even better experience.
• Creators using fixed-interval ad placements: If mid-roll ads are placed without considering the video’s flow, revenue may drop. That’s because YouTube will now reduce ads that interrupt content.

For creators who want to earn more while keeping their audience engaged, adopting the hybrid system and using YouTube’s new tools will be the smartest move.

Smarter ad placements, higher revenue: Why creators stand to win big

While YouTube’s latest mid-roll ad changes aim to make the viewing experience more seamless and less disruptive, creators have another reason to celebrate—increased monetization potential.

In early testing, YouTube found that channels leveraging the new hybrid approach—combining both manual and automatic mid-roll placements—experienced an average 5% boost in ad revenue compared to those sticking solely to manual placements. That’s a solid boost for creators looking to grow their income without losing viewers.

So, what’s driving this improvement? YouTube’s refined system uses AI to spot extra, non-disruptive ad slots that manual placement might miss. This means more chances for creators to monetize content, without annoying their audience.

As Thomas Kim explains:

“By adding auto on top [of manual placements], it lets our systems find potentially better breaks and increases your ad opportunity.”

For creators, this means getting the most out of every video—more ad spots, smoother content flow, and fewer viewers dropping off mid-watch.

What should creators do before May 12?

With the rollout just around the corner, YouTube urges creators to take action now to ensure they’re prepared:

• Review current manual ad placements using YouTube’s new feedback tool to identify any disruptive ad slots.
• Enable hybrid mid-roll ad placements, which will allow YouTube’s AI to find additional natural ad slots while keeping key manual placements.
• Structure content with natural breaks, ensuring ad-friendly pauses exist within longer videos for seamless integration.

YouTube reassures creators that manual control is not being removed:

“We’re not taking away any controls. You have control over whether you want to turn on mid-roll ads, turn off mid-roll ads, and where you want to place them. We’re just giving you more tools to optimize them.”

By embracing these updates, creators can enhance the viewer experience, keep their audience engaged, and make the most of their ad revenue.

A win-win for creators and audiences

YouTube’s new mid-roll ad strategy is a big step toward making video ads feel less intrusive while boosting monetization opportunities for creators.

• Viewers enjoy a more seamless experience with fewer disruptive ads.
• Creators retain control over ad placements while benefiting from optimized revenue opportunities.
• YouTube continues evolving its platform to balance audience satisfaction with content monetization.

As May 12 approaches, creators should fine-tune their mid-roll ad strategies, test out the new tools, and embrace hybrid placement to unlock new revenue potential while keeping viewers engaged.

Supercharge your YouTube success with Birdeye

If you’re serious about growing your YouTube channel and capitalizing on these new revenue streams, you’ll need more than smart ad placements—you’ll need a smarter way to promote your content.

That’s where Birdeye comes in.

Birdeye is an AI company with all-in-one social media management features designed to help location-based businesses streamline their content distribution and unlock their full YouTube potential. 

From AI-driven content repurposing tools to automated posting across multiple platforms, Birdeye ensures your video content isn’t just created—but is seen by the right audience, in the right places, at the right time.

With Birdeye Social AI, you can publish or schedule posts for your YouTube channel and other social platforms—all from one place. This makes it easier for you to share videos and content to keep your audience engaged and your channels active.

Need help tailoring video captions for Instagram, LinkedIn, or Facebook? Want to automate scheduling and select the best thumbnails for each platform? Birdeye has you covered—letting you focus on content creation while the platform handles distribution and optimization.

Watch a free demo today and discover how Birdeye can help your brand thrive in YouTube’s new era of smarter monetization.