SUMMARY

• YouTube announces the return of 30-second mandatory advertisements on connected TVs, targeting a large audience via YouTube Select.
• Under new CEO Neal Mohan, YouTube is reintroducing previously phased-out ad features and adding ads that play when videos are paused.
• Amid a looming recession, digital video advertising spending is projected to rise, though at a slower pace than the previous year.

In an unwelcome development for YouTube spectators, a new wave of mandatory advertisements is about to infiltrate their viewing experiences.

At the recent Brandcast event, targeted at advertising stakeholders, YouTube revealed its intent to introduce 30-second compulsory ads on connected televisions. This new addition is a feature of YouTube Select, an exclusive service for advertisers that aims to tap into the service's most-viewed content. YouTube, a division of Alphabet Inc. (GOOGL) - Free Report Available, asserts that approximately 70% of YouTube Select impressions are delivered via television sets. The inclusion of these ads, as stated by YouTube during the event (as reported by Engadget), will permit a more immersive narrative from advertisers.

Interestingly, YouTube had previously phased out the 30-second mandatory ad slots from YouTube Select in 2018. However, under the leadership of the new CEO, Neal Mohan, YouTube is reinstating this feature, allowing advertisers a bigger slice of viewer attention.

Sean Downey, the president of sales at Google and YouTube, mentioned in an interview with Adweek, "We're simplifying the process for advertisers who typically utilise linear television to advertise on YouTube.” Adding another feather in the cap of advertisers, YouTube is also planning to launch ads that commence once users pause videos.

This new initiative comes during an uncertain economic climate, where most economists harbor an 'if not when' sentiment concerning the possibility of a recession this year. Amid such economic turmoil, advertising revenues could face a decline as companies tighten their financial belts. Despite this, digital video advertising expenditure is forecasted to rise 17% year over year, reaching $55.2 billion in 2023, as per the Interactive Advertising Bureau. However, it's noteworthy that this 17% hike is slower than the 21% surge from the previous year.

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