Google expands availability of YouTube First Position ads

What are first position ads?
First position ads are in-stream ads that appear at the beginning of a YouTube video, ensuring they are the first ad a viewer sees.
This placement is designed to capture audience attention when they are most engaged.

Key changes to first position:

Availability: Now available across all YouTube content, not just YouTube Select listings

Pricing: Moving from a fixed rate CPM to a dynamic pricing model through Display & Video 360

Targeting: Allows advertisers to reach targeted audiences across a wider range of content This feature is now available in all markets where first position ads were previously available.

Ad formats and placements
First position targeting is available for both In-Stream and Short-form ad formats, expanding the potential reach of these ads.

It is important to note, however, that in-stream queue items targeting first position are not guaranteed to be served in the first position of a YouTube TV user session.

This could impact connected TV ad strategies.

Instant Reserve and Fulfillment Advertisers can use the Display and Video 360 feature Instant Reserve to get quotes and reserve YouTube inventory instantly, without negotiation.

This aligns with the new dynamic pricing model, providing greater flexibility in ad buying. During implementation, advertisers should note that YouTube videos used in first position ads must be set to “Public” or “Non-list” visibility. Private videos cannot be used in these campaigns.

Reporting & Measurement
To evaluate the performance of first position ads, advertisers can leverage the basic reporting templates and YouTube-specific reports in Display & Video 360.
These tools allow for detailed analysis of ad performance across a variety of metrics.

Providing Case Studies
Google cited two examples in the announcement:
Booking.com reportedly saw a 21% relative lift in ad recall during a holiday campaign.
IHG Hotels & Resorts claimed to have achieved double the ad recall and brand awareness of YouTube benchmarks when combining first position ads with “content takeovers.”

Background
This move could impact how brands allocate video ad budgets and could affect the battle for prime YouTube ad spots.
Here are the potential impacts of these changes on advertisers:
Flexible budgeting: Dynamic pricing makes spend strategies more adaptive.
Expanded reach: First position ads are now available for all YouTube content, not just “curated” inventory.
Increased competition: Wider availability could drive up the cost of premium placements.
Strategic planning: Advertisers may need to be more cautious when using first-position ads.