Youtube bets on AI ads as viewing habits evolve
Youtube has become a near-ubiquitous presence in UK homes, with 47.9m adults now using the platform across devices.
Ipsos data shows the average viewer spends 78 minutes a day watching its content, with the platform leading in so-called ‘connected TV’ viewing ahead of traditional broadcasters and other streaming services.
For brands, this scale is attractive: the potential reach is enormous, but whether it translates into meaningful engagement is less certain.
Erica Probst, head of Youtube solutions in the UK, pointed to the platform’s latest AI-driven ad formats, which include Video Reach Campaigns, Video View Campaigns, and Demand Gen campaigns.
“We bring that all together”, she told CityAM, “to make it easy for advertisers to reach their audiences and drive the business results that they want to see”.
These tools promise to optimise campaigns automatically, adjusting ad formats and placements to match viewing habits across screens.
A double-edged sword for brands
One area Yotutube leans on heavily is its creator ecosystem.
Probst says almost 60 per cent of viewers want to watch ads on their favourite creators’ channels to support them financially.
That trust is a valuable currency for brands seeking authenticity, but it also raises questions about how much influence creators now wield over purchasing decisions, and how transparent those relationships are to viewers.
Probst cited campaigns from ASOS and Waitrose, which reportedly saw measurable improvements in ROI using AI-powered campaigns.
Advertisers using these formats, she said, saw a 17 per cent higher return on ad spend compared with manual buying.
While these figures are compelling, they come from Youtube-backed studies and should be treated cautiously; independent verification is limited, and results can vary widely depending on sector, audience, and creative execution.
The platform’s economic impact is also significant, with Youtube contributing £2.2bn to UK GDP and supporting 45,000 jobs, while UK creators generate the majority of their watch time internationally.
While these figures underline Youtube’s reach and influence, they also reinforce the platform’s interest in promoting itself as indispensable to both advertisers and policymakers.
Meanwhile, competitors are experimenting with their own AI-driven ads.
Netflix, for example, plans to launch AI-generated mid-roll and pause ads in 2026, testing the boundaries of viewer tolerance.
Youtube’s approach, which leans on creator trust and AI optimisation, is positioned as more seamless, but it still relies on interruptive formats that may irritate some viewers.
For brands, the platform’s audience scale, cross-device reach, and AI tools can deliver measurable results.
But, campaigns must navigate the tension between authenticity and commercialisation.