Google expands First Position ad offering on YouTube

Google has announced the expansion of its First Position ad offering on YouTube, which will now be available across all content types via Display & Video 360. This is a change from the earlier limitation wherein First Position ads were limited to only YouTube Select inventory.

What are First Position ads?

First Position ads are in-stream ads that appear at the beginning of YouTube videos, ensuring these are the first ads viewers see. This placement is designed to capture viewers’ attention when their engagement is highest.

Key changes to First Position

• Availability: Now available for all YouTube content, not just limited to YouTube Select inventory.
• Pricing: Changed from previously fixed-rate CPM to a dynamic pricing model via Display & Video 360.
• Targeting: Allowing advertisers to now reach their target audience across a wider range of content.

This feature is now available in all markets where First Position ads were previously offered.

Ad formats and placements

First Position targeting is now available for in-stream and Short ad formats, increasing the potential reach of these ads. However, it’s worth noting that in-stream line items that target the first position are not guaranteed to appear in the first position of a user’s session on YouTube TV. This could have an impact on connected TV advertising strategies.

Instant Reserve and implementation

Advertisers can instantly get a quote and reserve YouTube inventory without any negotiation using Display & Video 360’s Instant Reserve feature. This coincides with the new dynamic pricing model, which provides more flexibility in ad buying.

For implementation, advertisers should keep in mind that YouTube videos used for First Position ads must be set to “Public” or “Unlisted” visibility. Private videos cannot be used in these campaigns.

Reporting and measurement

To evaluate the effectiveness of First Position ads, advertisers can use the basic report templates and YouTube-specific reports available in Display & Video 360. These tools provide a detailed analysis of ad performance based on a variety of metrics.

Case studies

1. Google presented two key examples in its announcement:
2. Booking.com saw a 21% relative increase in ad recall during a holiday campaign.
3. IHG Hotels & Resorts claimed to achieve two times more ad recall and brand awareness than the YouTube standard by combining First Position ads with Content Takeovers.

Context

This move could impact video ad budget allocation by brands and increase competition for premium ad placements on YouTube. The following could be the potential impacts of these changes:

1. Flexible budgeting: Dynamic pricing allows for more adaptive spending strategies.
2. Expanded reach: First Position ads are now available across all YouTube content, not just limited to select inventory.
3. Increased competition: Expanded availability could drive up costs for premium placements.
4. Strategic Planning: Advertisers may need to be more selective when using First Position ads.

Advertisers who want to take advantage of First Position ads should consult Google’s Help Center for Instant Reserve and Reservations in Google Ads to understand the implementation process and best practices.

Content and image credit: searchenginejournal