YouTube is changing how it shows ads. The company is adding a new tool called “Peak Points.” This tool uses artificial intelligence (AI) to find the most exciting parts of videos. Ads will then play right after those moments, helping capture more viewer attention.
How “Peak Points” Works
Using Google’s AI model Gemini, the system analyzes videos to find moments when viewers are most interested. Advertisers can place ads right after these high-engagement points. For example, in a video showing a mountain-top marriage proposal, the ad might appear just after the question is asked. Viewers feel the strongest emotions then, making the ad placement more effective.
The feature was revealed during YouTube’s 20th anniversary event. As one of the biggest video platforms globally, YouTube earns significant revenue from ads. In the first quarter of 2025 alone, the platform generated nearly 8 billion euros from advertising—a 10% increase from the previous year. Notably, this total excludes subscription revenue. The new AI-driven tool forms part of YouTube’s broader strategy to improve advertising through technology.
Google’s Big Bet on AI
Parent company Alphabet is investing heavily in AI this year, planning to spend 75 billion dollars (about 65.9 billion euros) on AI tools and infrastructure. Gemini AI is already integrated into many devices such as phones, watches, cars, and TVs. This move highlights how AI is central to Google’s future plans.
Why Place Ads After Exciting Moments?
“Peak Points” identifies moments in videos that trigger strong viewer reactions. Ads placed immediately after these emotional peaks are more likely to be watched. Since viewers are most engaged during these times, advertisers see better results. This approach matches advertisers’ goals of maximizing visibility.
Concerns exist that adding more ads could disrupt the viewing experience. However, YouTube assures that “Peak Points” will make ads less intrusive. The system places ads during natural breaks in videos, which helps ads fit smoothly into the content. Rather than ads interrupting randomly, they appear when the video naturally pauses, reducing frustration.
AI is revolutionizing video consumption by helping platforms understand what viewers enjoy. This allows for smarter ad placements and improved content recommendations. YouTube is focused on enhancing viewer experience by making ads less annoying and more relevant.
Why Are Video Ads Growing?
More companies prefer online advertising, especially video ads, because videos hold viewers’ attention longer than other content types. YouTube’s massive audience and tools like “Peak Points” keep it a leader in the online advertising market.
Beyond “Peak Points,” Google uses Gemini AI for improving search results, powering voice assistants, and enhancing smart home and car devices. These wide applications show Google’s commitment to leading the AI revolution.
Balancing Viewers and Advertisers
By placing ads at well-timed moments, YouTube aims to keep viewers happy while delivering value to advertisers. This balance is key to the platform’s ongoing success. AI will continue to create new ways to blend ads and content seamlessly.
“Peak Points” represents a significant advancement in video advertising for YouTube. AI helps identify the best moments for ads, improving effectiveness and viewer experience alike. Alphabet’s large investment in AI supports this innovation, aiming to keep YouTube competitive in video ads.