YouTube is betting big on podcast advertising.
The platform plans to test dynamic ad insertion for host-read ads, allowing creators to swap sponsorships within individual videos — similar to how ads run on podcast platforms like Spotify and Apple Podcasts. The move is designed to boost monetization opportunities for creators and strengthen YouTube’s position in the podcasting space.
The test, first reported by Semafor’s Max Tani, aligns with YouTube CEO Neal Mohan’s letter to the market from February (the now infamous “YouTube is the new TV” letter), which shared plans to expand podcasting tools and improve creator revenue.
As Max explains, dynamic ad insertion means the same sponsorship won’t run forever on a podcast episode. Instead, listeners tuning in to older episodes will hear ads that are more timely and relevant — allowing podcasters to charge more for that inventory.
Why This Matters:
Here’s what Mohan said, specifically, a month ago:
“One of the most relevant formats driving culture – podcasts – is thriving on YouTube. YouTube is now the most frequently used service for listening to podcasts in the U.S. We’ve long invested in the podcast experience and creators have found that video makes this format even more compelling. This year we’ll roll out more tools to support podcasters, improve monetization for creators, and make it even easier to discover podcasts.”
Dynamic ad insertion is standard in podcasting because it gives creators a way to keep monetizing their back catalogs — often the most valuable part of a podcast’s library. By bringing this capability to YouTube, the platform isn’t just supporting podcasters — it’s positioning itself to compete more directly with Spotify and Apple for podcast ad dollars.
With YouTube reportedly ranking as the most-used platform for podcast listening in the U.S., rolling out this new tool could shift even more of the podcast advertising market toward the streamer.
Experts React:
The adtech world is reacting on adtech X:
Our Take:
Frankly, it’s shocking this functionality hasn’t existed on YouTube until now. Podcast ad revenue is driven in large part by back catalogs, and without dynamic insertion, creators on YouTube have been leaving money on the table.
This test signals YouTube is getting serious (super duper serious, possibly). It’s a realization that if it wants to dominate podcasting — not just host podcasts — it needs to compete on monetization tools, not just scale. If rolled out widely, this could help shift the podcast ad market a bit and cement YouTube as the go-to platform for creators serious about ad-based monetization.
For what it’s worth, a few months ago we had a good conversation with Paul Kelly, the CEO of adtech company, AMA, which specializes in dynamic audio ads for podcasts and streaming. Check it out here.
