Google has broadened the scope of its First Position ads on YouTube, a placement that ensures your ad is the first thing viewers see when they start watching content.

Via Google Ads Help

Previously limited to YouTube Select inventory, this feature is now available across all YouTube content types via Display & Video 360, allowing advertisers to take advantage of a broader array of user segments. Additionally, Google has shifted from a fixed-rate CPM pricing model to a dynamic pricing system, giving advertisers more flexibility with their budgets.

Key Updates on First Position Ads:

1. Increased Availability: First Position ads are now accessible across ALL YouTube content—not just YouTube Select​. You can now target your audience across a broader range of YouTube content, maximizing reach during critical campaigns like product launches or cultural events​.
2. Pricing Shift: The move to dynamic CPM gives advertisers more flexibility to spend based on demand, rather than based on a price set by Google. This may result in an increase in competition with lowered costs during slower periods.
3. Expanded Ad Formats: First Position ads are available in both in-stream and Shorts formats, widening the scope of where your ad can appear​.

How Does This Impact You? 

• Potential For Increased Competition: With First Position ads now available across all content, competition will be steeper than ever to get your ad in the first position and speak to your audience.
• Strategic Use: While the expanded reach is beneficial, brands need to be more selective about using First Position ads due to the potential rise in cost and competition for top placements. This also gives advertisers the ability to go after segments with lower CPM’s and issue market dominance in those areas. 
• Instant Reserve for Flexibility: Advertisers can use Instant Reserve in Display & Video 360 to book First Position inventory immediately, streamlining the process without the need for negotiations​.

Next Steps:

• Test First Position Ads: Consider incorporating these ads into your upcoming campaign structure to take advantage of their extremely high visibility, especially for key moments like product launches or promotions.
• Monitor Pricing: With dynamic pricing in effect, closely watch how your spending aligns with ad performance to make the most of your budget.
• Consult Reporting Tools: Leverage YouTube-specific reports in Display & Video 360 to analyze metrics like ad recall and engagement​. This way, you can see how these changes are directly affecting your marketing efforts, and you can pivot as needed. 

First Position ads present an opportunity to capture audience attention when it matters most. Interested in implementing this for your next campaign? Reach out to us to help you get started!