YouTube announced that it will be discontinuing its overlay ad format, the banner ads that pop up over the video player, on April 6, 2023. The move is aimed at providing a better viewing experience for users, as the company considers overlay ads to be a “legacy ad format” that is disruptive and outdated.
According to the company, the overlay ads are only effective on desktops and can be a nuisance for viewers. To address these issues, YouTube will be replacing them with video ads that can play before, in the middle of, or after a video. The “view product” pop-up ad will still be available, and banner ads will continue to be displayed in the recommended video list.
While the discontinuation of overlay ads may seem like a loss for creators, YouTube assures that there will be a “limited impact for most Creators as engagement shifts to other ad formats.” It’s worth noting that seeing overlay ads doesn’t necessarily translate to earning money for creators. Advertisers can choose to pay only if a user clicks on the ad, which means that there’s a high chance that nobody is actually getting paid from these pop-ups. Video ads with a “skip” button also don’t pay out if users click the skip button.
The move to discontinue overlay ads is a win-win situation for both viewers and creators. Viewers will now be able to enjoy uninterrupted videos without the distraction of pop-up ads, while creators can still earn revenue through other ad formats. It’s a step in the right direction for YouTube, as the company continues to prioritize user experience and engagement.