YouTube Is Putting Ads Everywhere

YouTube's Ad Push: Split-Screen Streams, Sponsored Subs, and $9.88B in Revenue

Two separate ad changes hit YouTube in the same week, and together they paint a clear picture of where the platform is heading.

Side-by-Side Livestream Ads Come to Mobile

First announced last May, side-by-side ads (opens in a new tab) split the screen during automated mid-roll breaks on livestreams. The ad plays in one portion of the player while your stream stays visible in the other. Stream audio is muted during the ad, then returns when it ends.

If you've watched Twitch, this will feel familiar.

The format launched on desktop and TV last year, and now it's rolling out to mobile (opens in a new tab). On desktop, the ad appears to the right of the livestream. On mobile, at least one screenshot from a Reddit user (opens in a new tab) showed the ad stacked below the stream in portrait mode.

YouTube's pitch to creators, from last year's announcement, was that they developed this because they know "creators are often hesitant to run ads that interrupt key moments on their streams" and wanted a format that keeps viewers connected to the broadcast. That reasoning makes sense. Having the stream visible during an ad, even with muted audio, is less jarring than a full-screen takeover where viewers lose the stream entirely for 15-30 seconds.

Ads in the Subscriptions Feed

The second change is arguably more significant for the average YouTube viewer. Sponsored ads are now appearing directly in the Subscriptions feed, a space that has historically been ad-free.

The Subscriptions feed is the one place on YouTube where you only see content from channels you've actively chosen to follow. No algorithm, no recommendations, just videos from the channels you subscribed to in chronological order. For a lot of viewers, it's their primary way of using YouTube.

Now, "Sponsored" video ads are mixed in among those updates. They're labeled, so you can tell them apart, but they're there. It's worth noting that YouTube Premium subscribers won't see these. But for the majority of viewers on the free tier, the last ad-free feed on YouTube just got ads.

The Real Issue: Creator Control

If you have automated mid-rolls enabled on your livestreams (which YouTube recommends by default), side-by-side ads will appear automatically. You don't get to choose between this format and traditional full-screen mid-rolls. YouTube decides which format to serve, and when.

You can disable automated mid-rolls entirely and trigger ads manually during natural breaks instead. That gives you full control over timing, and your viewers will likely appreciate it. The trade-off is predictable: fewer ads means less revenue. YouTube's automated system will always run more ads than you would manually, because it optimizes for revenue, not viewer experience.

The Bigger Picture: $9.88 Billion in Q1

Both of these changes land in the same week that Alphabet reported YouTube's Q1 2026 ad revenue: $9.88 billion (opens in a new tab), up 10.7% year-over-year. For context, Q1 is typically YouTube's weakest quarter for ad spending, and it still nearly hit $10 billion.

On the other side of the equation, YouTube Premium and Music had their largest quarterly increase in non-trial subscribers (opens in a new tab) globally since Premium launched in 2018. More people are paying to remove ads, and YouTube is simultaneously adding more ads for those who don't.

That's not a contradiction. It's a strategy. The more places ads appear, the more appealing Premium becomes. YouTube CEO Neal Mohan has previously confirmed that YouTube has paid creators over $100 billion through its Partner Program over the past four years. The ad engine is clearly working for the platform. The question for creators is whether these new placements help or hurt the viewer experience enough to affect retention.

What Should You Do?

If you livestream on YouTube, review your mid-roll settings in YouTube Studio. Decide whether automated mid-rolls (more revenue, less control) or manual ad breaks (less revenue, better timing) make more sense for your content and audience.

If you're a viewer frustrated by Subscriptions feed ads, YouTube Premium removes them. That's by design.

And if you're a creator watching this from Twitch: your platform has been doing the same thing with Picture-by-Picture ads for years. YouTube is just catching up, arguably with a cleaner implementation. The real differentiator between platforms on ads isn't the format anymore. It's how much control you get over timing and placement.

YoloCam S3: DSLR Quality, Now in a Webcam

Sponsored by YoloLiv (opens in a new tab)

Bring real camera quality to your stream with the YoloCam S3 (opens in a new tab). A large 1/1.28-inch sensor and 4K capture combine to deliver cinematic depth of field, sharp detail, and natural background separation, the kind of look you'd usually need a DSLR for.

You also get instant autofocus, strong low-light performance, and a premium full-metal body that feels built to last. If you've been waiting for a webcam that actually looks like a real camera, check out the YoloCam S3 (opens in a new tab).

Pete’s Content Corner

Delve into my weekly selection of content creation highlights - handpicked videos, podcasts, and tweets that promise to captivate, educate, and entertain.

Instagram is cracking down on content aggregators (opens in a new tab), reducing algorithmic reach for accounts that primarily repost other creators' content in photos and carousels. The change doesn't affect followers who already follow these accounts, but aggregator content will no longer surface in recommendations or Discover.
Patreon has rolled out its Discovery Network (opens in a new tab) to most of its 300,000 creators, adding a Home Feed with algorithmic recommendations, short-form posts called "Quips," and collab posts.
Twitch has added three Promotion tokens (opens in a new tab) (usable across 24 hours) to streamers' Sub Discount feature, giving more flexibility for running limited-time subscription sales.

Thanks, as always, for taking the time to read Stream Report.

Pete ✌️