Richard Parks YouTube has introduced a new AI-driven feature called “Peak Points” that places ads immediately after the most engaging moments in videos. Powered by Google’s AI model Gemini, the tool identifies when viewer attention peaks and inserts advertisements directly afterward, aiming to increase ad effectiveness and revenue.
The platform explained that in a video of a marriage proposal, for example, the ad would appear right after the proposal moment to capture viewer interest. YouTube unveiled this innovation during its 20th anniversary event in 2025.
YouTube’s Advertising Revenue Continues to Grow
In the first quarter of 2025, YouTube reported nearly €8 billion in advertising revenue, marking a 10% increase compared to the previous year. This growth excludes income from subscription services like YouTube Premium, which are also on the rise.
Alphabet’s Expanding AI Investment
YouTube’s parent company, Alphabet, is significantly boosting its investment in AI technologies. In April 2025, Alphabet announced a $75 billion (€65.9 billion) funding plan to enhance AI infrastructure and capabilities throughout the year.
Beyond advertising, Alphabet is integrating its Gemini AI model into various devices, including Android smartphones, smartwatches, cars, and smart TVs. This expansion aims to embed AI deeply into the company’s ecosystem and user experience.
AI Enhances Advertising Efficiency
With “Peak Points,” YouTube aims to make ads more relevant and impactful by delivering them during moments of peak viewer engagement. This aligns with YouTube’s wider strategy to use AI for optimising advertising revenue while improving the viewer experience.
Experts highlight that targeted ad placement can significantly increase click-through rates and advertiser returns. This new tool reflects a growing trend in digital media to leverage artificial intelligence for smarter content monetization.
Source : daljoog news