YouTube tests picture-in-picture ads for live streams

YouTube is testing a new advertising format for live streams including Picture-in-Picture mid-roll ads. This innovative format will start appearing in some eligible broadcasts on select devices over the coming months.

According to YouTube's blog post, “We’re trialing Picture-in-Picture for live mid-roll ads. In the near future, a few viewers on specific devices will see this new ad format, which lets creators run ads without interrupting the live stream!”

Instead of the traditional mid-roll ads that interrupt the stream, this new approach allows streamers to generate revenue through smaller, overlay ads that appear on top of the ongoing live broadcast, preserving the flow of the stream.

A less intrusive ad format might be more suitable for integrating promotions into live streams. Last September, YouTube began testing mid-roll ads for live streams, which featured a countdown timer to alert viewers and streamers about upcoming ads, as well as a delay option to prevent ads from appearing at inconvenient moments.

With this new, Picture-in-Picture format, concerns about interrupting the stream are minimised. Although these ads might not be as effective for advertisers as traditional mid-roll ads, they could better match the live-stream format, offering more ways to engage with the audience without causing annoyance.

Mid-roll ads in live streams have proven valuable, particularly for creators. YouTube reports that creators who have implemented automated live mid-roll ads have experienced an average increase of over 20% in in-stream ad revenue per hour.