From premium to programmatic: Has YouTube masthead’s value taken a hit amid cost surge?

YouTube has long ruled India’s digital advertising space, but its advertising model has drastically changed. Once seen as the go-to platform for impactful ads, YouTube now thrives on data-driven programmatic advertising, reshaping how brands target audiences and track ROI.

Ten years ago, YouTube masthead ads sold for Rs6-7 lakhs per day, but today, costs have increased several folds, touching nearly 10X that amount on top days as brands buy targeted ads by demographics and regions, capitalising on flexible, automated strategies. This shift offers new opportunities but also complicates ad pricing and effectiveness for marketers.

Historically, YouTube's masthead ad—positioned at the top of the YouTube homepage—was viewed as a ‘roadblock’ ad format that guaranteed extensive visibility.

From digital crown jewel to questionable ROI?

An anonymous ex-marketing head recalled how, during its prime, “YouTube used to be the epitome of impact buying on digital,” and the masthead was “the most premium priced property” in the digital space, often booked for an entire year due to its ability to deliver high daily impressions.

However, as digital marketing has matured, the perception of the masthead’s value has shifted. While it continues to offer broad visibility, advertisers are increasingly scrutinizing its cost-effectiveness.

“Advertisers began to realize that the ROI on masthead ads wasn't as high as once thought, though they still remain impactful,” the source added.

Still a direct deal, despite programmatic boom

What remains unchanged is that YouTube’s masthead ads are still sold via direct deals, not programmatically.

“If you want to buy a YouTube masthead, you have to deal with the YouTube team. You cannot buy it programmatically,” the source emphasized. Despite the programmatic revolution, major impact-driven ad formats, like the YouTube masthead and Connected TV home screen inventories, are rarely available through automated buying platforms. Approximately 90–95% of such ‘roadblock’ properties still require direct buys.