and the distribution of digital products.
YouTube’s AI now knows when you’re about to buy
YouTube unveiled new ad formats on Wednesday during its Upfront presentation in New York, featuring a performance by Lady Gaga and appearances by popular YouTubers like Brittany Broski and MrBeast. The new formats include an enhanced shoppable connected TV (CTV) offering and a new ad format called “Peak Points.”
The shoppable CTV ad format allows advertisers to display products on the right side of the TV screen during ads, accompanied by an interactive product feed that acts as a storefront for brands. Viewers can browse multiple products using their remotes, select an item to scan a QR code with their smartphone for a direct purchase link, or press and hold a button to send the link to their phones to shop for all products at once.
This move is strategic for YouTube, as it recognizes that viewers often watch videos on the big screen while using their phones to scroll through social media or shop online. YouTube has become a dominant force in TV viewing, with Nielsen reporting it as the top platform for streaming watch time in the U.S. for over two years, surpassing Netflix, Disney+, and Prime Video.
Video: Google
In the first quarter of 2025, TVs were the primary device for YouTube viewing in the U.S., according to internal data. A Kantar survey also ranked YouTube as the No. 1 platform for seeking out information about brands among U.S. participants. YouTube campaigns on CTV generated over 50 million monthly average conversions in the fourth quarter.
The new “Peak Points” ad format leverages Google’s Gemini AI to analyze YouTube videos and identify moments with the highest viewer engagement or emotional impact, suggesting ad placement immediately after these moments. This approach is similar to emotion-based targeting, where advertisers place ads that align with the emotions evoked by the video, potentially leading to better ad recall.
YouTube also debuted a shoppable product feed where users can browse and purchase items during an ad, a format that has gained traction among streaming services and advertisers. Amazon recently announced a similar interactive shoppable ad format on Prime Video, highlighting Amazon deals, user reviews, and Prime shipping details.