YouTube is preparing to test a feature that would allow host-read advertisements to be dynamically inserted and replaced within individual videos, according to reporting from Semafor. 

The technology mimics capabilities already available on competing platforms like Spotify and Apple Podcasts.

The Google-owned video platform is developing this feature as part of its broader strategy to strengthen its position in the podcast market and enhance monetization options for creators.

Revamping Creator Monetization

Current YouTube advertising restrictions prevent content creators from updating advertisements in previously published videos. 

As Semafor notes, this limitation has been a point of frustration for podcasters who typically sell host-read advertisements that can be swapped out after reaching agreed-upon download targets on other platforms.

“This year, we’ll roll out more tools to support podcasters, improve monetization for creators, and make it even easier to discover podcasts,” YouTube CEO Neal Mohan recently wrote in a public letter outlining the platform’s 2025 strategy.

Potential Market Impact

The implementation of dynamic ad insertion on YouTube could create greater advertising flexibility and potentially unlock additional revenue streams for podcasters, according to Semafor. 

Despite YouTube’s growth as a podcast consumption platform, most top podcasters currently generate most of their income from other platforms due to these monetization limitations.

YouTube reports monthly podcast listenership exceeding 400 million hours and one billion users viewing podcast content in a single month.

The Competition

The move signals YouTube’s increased focus on podcasting amid growing competition. 

Spotify previously invested heavily in podcast expansion and recently began paying top podcasters to include video content. The Swedish streaming company also launched ad-free video viewing for premium subscribers earlier this year.

In June 2024, Spotify reported that the average daily streams of video podcasts had increased by more than 39% year-over-year globally.

Semafor notes that Netflix is reportedly exploring potential expansion into podcasting as well.

Corporate Reorganization

In related developments, Kai Chuk, YouTube’s first director of podcasting, has recently departed the company. YouTube is reorganizing by merging its Podcast Partnerships team with its News and Civics Partnerships teams.

During a recent interview with Semafor, Mohan emphasized creator support as his primary concern as CEO, stating that YouTube has paid $70 billion to creators, media companies, and other partners over the past three years.

“YouTube should be the most efficient way to connect a creative idea or a creator with their fans no matter where they are in the world,” Mohan stated.