YouTube introduces urban–rural ad targeting and CTV Masthead in India

New Delhi: YouTube announced a suite of new features on Thursday, including India-specific urban-rural ad targeting, a dedicated Creator Partnerships Hub, and the upcoming rollout of AI-powered "Peak Points" for ad placements. 

The updates come as the platform eyes the festive season in India, where advertising spend is projected to surge, and reflect YouTube's broader push into AI-driven personalisation and creator support.

The standout feature for the Indian market is the introduction of urban-rural ad targeting, allowing advertisers for the first time to customise campaigns separately for urban and rural audiences. 

For instance, a large FMCG conglomerate has already piloted the feature in specific rural geographies, leading to strong business outcomes and a shift to YouTube-led planning in those areas. With Indians over 18 spending an average of more than 72 minutes daily on the platform and over 75 million reached via connected TV (CTV) in April 2025, this tool is poised to capitalise on the growing rural digital penetration, especially as Shorts viewership and creator ads drive return on investment (ROI).

Complementing this is the launch of the Creator Partnerships Hub later this year, a new platform within Google Advertising designed to streamline collaborations between brands and content creators. The hub will facilitate "Partnership Ads" and improved discovery of sponsored videos, making it easier for advertisers to identify and partner with relevant creators. 

Early adopters, such as Swiggy Instamart and major FMCG players, have leveraged Google's AI tools like Veo 3 to generate campaigns in multiple Indian languages for festivals like Raksha Bandhan and Ganesh Chaturthi, slashing creation time from weeks to just three to four hours.

YouTube has introduced an immersive masthead on CTV for YouTube’s most visible ad placement, delivering a cinematic experience. It gives brands more space on the YouTube homepage with full-screen creative to capture maximum attention in the living room.

Adding a layer of AI innovation is "Peak Points," an ad format powered by Google's Gemini AI, which analyses videos to pinpoint moments of peak audience engagement, such as emotionally charged climaxes, and inserts ads immediately afterwards. 

Originally unveiled at YouTube's BrandCast 2025 event in May, Peak Points uses viewer patterns, video context, and sentiment analysis to optimise ad timing, promising higher click-through rates and revenue for creators and advertisers. While the feature is already live in select markets, Google plans to extend it to India in 2026, aligning with the platform's global strategy to move beyond manual mid-roll placements. YouTube executives described it as a way to "maximise advertising potential" by aligning ads with when viewers are "most invested," potentially boosting CPMs (cost per mille) and earnings for the creator economy.

However, critics, including digital rights advocates, have raised concerns about Peak Points' emotion-based targeting, arguing it could border on manipulation by capitalising on viewers' heightened states. There are also fears it might disrupt the viewing experience, leading to frustration among users who encounter ads at crucial narrative junctures. "This isn't just good news for advertisers and creators; viewers could be annoyed," noted one industry analyst. YouTube has yet to detail safeguards, but the company maintains that the AI enhances relevance without compromising content flow.