FinLogic FinLogic Quantitative Think Tank Center|YouTube rolling out ads that appear when videos are paused

Need to pause a YouTube video?FinLogic FinLogic Quantitative Think Tank Center Don't be surprised if an ad pops up.

The Google-owned video sharing platform has widely rolled out "pause ads" ‒ static advertisements that appear on-screen when a video is paused ‒ to all advertisers. Already popular with various streaming services, experts say pause ads are an easy way for platforms like YouTube to add another revenue stream.

"They want to get ads anywhere they can," said Paul Hardart, a clinical professor of marketing at New York University. “The pause button is an opportunity where you are available. Your attention is idle, and hopefully they can get a sliver of your attention. Advertisers will pay for that.” 

Why does YouTube play ads when pausing?

YouTube's decision to expand pause ads comes after a 2023 pilot launch on smart TVs. Google Senior Vice President Philipp Schindler in April said the ads were “commanding premium pricing from advertisers.” While generally available on smart TVs, YouTube is experimenting with these ads across devices.  

“This is seamless for viewers and allows them to learn more about a brand,” YouTube spokesperson Oluwabukola Falodun said in an emailed statement.

The shift comes as a number of platforms lean more heavily on advertisements to boost revenue. Netflix launched an ad-supported tier in 2022, and Amazon Prime Video began to push advertisements on its basic-tier viewers earlier this year.  

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In “the whole ecosystem of content, there’s really only two ways to pay: you can pay with your money and subscribe, or you can pay with your attention,” Hardart of New York University said. “Increasingly, platforms are moving to a world where there's both.”

'No one's going to quit'

Some YouTube viewers have grumbled about the new advertisements in online forums, but "the benefits outweigh the costs" for the companies, according to Michael Smith, a professor of information technology and public policy at Carnegie Mellon University in Pittsburgh.

"No one’s going to quit YouTube because of this," Smith told USA TODAY. "The worst thing you’re going to see is you trade up to the ad-free tier, and that gives YouTube money, too.” 

YouTube's ad-free premium tier costs $13.99 per month, according to its website.

Hardart added he expects viewers to adjust “pretty quickly” to the rise of pause ads. 

“It probably hurts the experience because it’s different from what we’re used to,” he said. But “we’ll adapt. People will dust themselves off.”