Google Pushes First Position on YouTube Through Display and Video 360. Should You Bite?

Google has rolled out a new option for advertisers, allowing them to bid for the First Position slot on all YouTube content—not just YouTube Select. First Position means your ad will be the first thing a user sees before a video begins. This update could be a game-changer for brands looking to increase top-of-mind awareness during high-traffic events like sports games or other special broadcasts. However, before diving into this new placement, there are some important factors to consider.

YouTube Select vs. All YouTube Content: What’s the Difference?

The key difference between YouTube Select inventory and all YouTube content boils down to the quality and popularity of the placements. YouTube Select is a curated selection of premium content—think of it as the top-tier channels, popular videos, and YouTube Originals. These are prime ad placements that generally offer higher engagement and better performance metrics.

By expanding First Position bidding to all YouTube content, advertisers gain more reach, but that comes at a trade-off: the content might not be as high-performing or high-quality as YouTube Select inventory. Essentially, while you're reaching more viewers, the overall audience engagement might be less valuable depending on the content where your ad appears.

Does Display Bidding Mean You’re Buying GDN Ads?

There’s some confusion when advertisers hear “Display” bidding—they might think they’re bidding on Google Display Network (GDN) ads. That’s not the case here. First Position bidding is handled through Display & Video 360 (DV360), Google’s Demand-Side Platform (DSP) for programmatic advertising. Through DV360, advertisers can bid on YouTube ads, including the First Position option, without having their ads appear on the broader GDN.

This distinction is important because the GDN typically includes banner ads or video ads placed on websites that aren’t necessarily YouTube-related, whereas YouTube First Position ads are strictly within YouTube's ecosystem.

Dynamic CPMs: Does This Mean You’ll Pay More?

Google’s move from fixed-rate CPMs (cost per thousand impressions) to dynamic CPMs might raise eyebrows—does this mean advertisers will be drawn into bidding wars that drive up prices? Not necessarily, but it’s a nuanced shift.

With fixed-rate CPMs, advertisers pay a set amount per 1,000 impressions, which offers cost stability but might limit the opportunity to access premium placements during high-demand events. Dynamic CPMs (dCPMs), on the other hand, allow for more flexible bidding based on demand. This flexibility can be beneficial during premium content availability, but there’s a catch: dCPMs are inherently more volatile, meaning costs can spike when competition increases. However, dCPMs also allow advertisers to save on less competitive placements, offering a balance between cost control and the opportunity to win higher-value slots.

When Should You Consider First Position Bidding?

First Position bidding is an attractive option for advertisers who want guaranteed visibility, particularly during high-traffic or special events like live sports, product launches, or award shows. Here are a few situations where First Position bidding might make sense:

• Building Brand Awareness: If your goal is to ensure that your brand is the first thing viewers see when starting a video, First Position can boost recall and visibility.
• Event-Driven Campaigns: During time-sensitive or event-driven campaigns, being in the first ad slot can help capitalize on heightened user engagement.

However, advertisers must carefully monitor their budget and performance, especially as dCPMs can fluctuate based on the content's and audience's competitiveness.

Key Takeaways

1. Expanded Reach with Trade-offs: Bidding on First Position across all YouTube content provides more opportunities to reach users, but advertisers should be mindful of content quality compared to YouTube Select.
2. Not the Same as GDN: First Position ads are strictly YouTube ads, even when managed through DV360, and don’t overlap with Google Display Network ads.
3. Dynamic CPMs Mean Flexibility, Not Guaranteed Higher Costs: Dynamic bidding can lead to higher costs for premium content but also offers opportunities to bid lower on less competitive placements, making it a strategic move depending on campaign goals.

By understanding the nuances of first-position bidding and dynamic CPMs, advertisers can take full advantage of this expanded YouTube ad placement while maintaining control over their costs and campaign objectives.

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