YouTube has announced a new way to place advertisements inside videos. The company will use an artificial intelligence tool called “Peak Points” to add ads right after the most exciting parts of a video. This new feature was revealed during YouTube’s 20th anniversary event on Wednesday.

How “Peak Points” Works

The “Peak Points” tool uses Google’s advanced AI model, Gemini, to find the moments in a video that get the highest viewer attention. These are points where people are most emotionally involved or highly focused. For example, the AI might detect a dramatic scene like a marriage proposal or a key moment in a sports game.

Once these moments are identified, brands can place their ads immediately after. This helps ads feel less intrusive and more connected to the content. Instead of breaking up a video randomly, ads will follow moments that viewers have just watched with strong interest.

YouTube gave a clear example: if a video shows a surprise marriage proposal on a mountaintop, the ad will appear right after that touching scene. This timing can increase the chance that viewers will watch the ad fully.

Boosting Ad Revenue with Smarter Placement

YouTube’s advertising business remains very strong. In the first quarter of 2025, YouTube earned nearly €8 billion in ad revenue. This was a 10% rise compared to the same period last year, not counting subscription income.

The company believes “Peak Points” can help make ads more effective. By placing ads where viewers are already emotionally involved, brands can get better results. This can mean more clicks, more views, and ultimately more money for YouTube.

The new tool fits well with YouTube’s overall plan to innovate and improve its ad services. The company wants to give advertisers smarter ways to reach viewers while keeping people watching videos happily.

Alphabet’s Big AI Investment

YouTube is owned by Alphabet, Google’s parent company. Alphabet has been investing heavily in artificial intelligence. Just last month, Alphabet announced it would spend $75 billion (€65.9 billion) in 2025 to build up its AI technology.

Gemini, the AI behind “Peak Points,” is not only used on YouTube. It is also being added to other Google products like Android phones, cars, smartwatches, and TVs. This shows Alphabet’s commitment to making AI a core part of its future.

The launch of “Peak Points” is just one example of how AI is changing advertising and media. As machines get better at understanding what people watch and feel, ads will become more personalized and well-timed.

The Future of Video Advertising

Advertising on YouTube has evolved over the years. In the early days, ads were often placed at the start or middle of videos without much thought to timing. Viewers sometimes found this disruptive.

With tools like “Peak Points,” advertisers can connect with viewers in a way that feels natural. Ads will follow exciting or emotional moments, increasing the chance viewers will stay engaged rather than skip them.

This approach also benefits creators, who can offer more value to brands without losing their audience’s trust. Smarter ad placement means better income for creators and a better experience for viewers.

Industry Experts React

Many marketing experts see “Peak Points” as a smart move by YouTube. Jane Miller, a digital marketing consultant, said:

“This technology helps brands reach their audience at the right time. It’s a win-win. Viewers get less annoying ads, and advertisers get more attention.”

However, some privacy advocates warn about the increased use of AI in media. They say companies must be careful about how much data is collected and how it is used to target ads.

How Viewers Can Expect Changes

For regular YouTube users, “Peak Points” means ads might feel more relevant and less disruptive. Instead of interrupting content randomly, ads will appear after key moments.

YouTube has not said when the feature will roll out to all users. For now, it is likely to be tested with select creators and advertisers.

YouTube’s new AI tool “Peak Points” shows how artificial intelligence is changing the way we watch and experience videos. By placing ads right after the most engaging moments, YouTube hopes to improve ad effectiveness while keeping viewers happy.

With Alphabet’s large investments in AI, this is just the beginning of more smart and personalized technology in media. As the tool expands, it may set new standards for online video advertising.