Should You Enable All Ad Formats? Pros and Cons

When setting up monetization for your YouTube videos, you're given the option to enable several types of ad formats: display ads, overlay ads, skippable video ads, non-skippable ads, bumper ads, and more. The default suggestion is usually to check them all—but is that actually the best strategy for your channel’s growth and earnings?

This article breaks down the benefits and drawbacks of enabling all ad formats, and how each one affects your revenue, viewer experience, and overall performance.

The Different YouTube Ad Formats

Before diving into strategy, let’s recap what each format actually means:

• Display Ads: Shown on the right sidebar next to the video (desktop only).
• Overlay Ads: Semi-transparent ads appearing on the lower portion of your video (desktop only).
• Skippable Video Ads: Viewers can skip these after 5 seconds.
• Non-Skippable Video Ads: Viewers must watch the full 15-20 seconds before the video starts or during mid-roll.
• Bumper Ads: 6-second non-skippable ads that show before the video starts.
• Sponsored Cards: Small cards suggesting products featured in the video.

Each of these has different CPM rates, viewer tolerances, and suitability for your content style.

Pros of Enabling All Ad Formats

1. Maximizing Revenue Opportunities
Allowing all formats gives YouTube more flexibility to serve the highest-paying ad at any moment. If there are no high bids for skippable ads, maybe a display ad can fill the space.

2. Higher Fill Rates
More ad types = more chances your inventory gets filled. This is especially helpful for creators with lower daily views or channels targeting niche regions.

3. Bumper Ads Can Be Lucrative
Although they’re only 6 seconds, bumper ads are often brand-focused and carry high CPMs. They’re less disruptive and can be stacked with pre-rolls.

4. Non-Skippable Ads for High-Retention Videos
If you have high audience loyalty, non-skippable ads may not hurt your performance. These ads often pay better than skippables, especially in high-value niches like finance or software.

5. Passive Sponsored Cards Revenue
For product-related videos, sponsored cards can add income without taking screen real estate or requiring long ad breaks.

Cons of Enabling All Ad Formats

1. Viewer Frustration
Non-skippable and bumper ads can annoy viewers, especially on shorter videos. High ad density may lead to higher bounce rates, particularly if users are watching on mobile.

2. Reduced Watch Time
If viewers click away after a long pre-roll or mid-roll ad, your average view duration drops. That affects your video’s ranking in search and suggested feeds.

3. Overlay and Display Ads Feel Dated
These formats are only available on desktop, and many viewers find them intrusive. They also earn the lowest CPMs in many cases, and clutter the interface.

4. Incompatibility with Certain Audiences
If your channel is aimed at children, educational institutions, or meditation/relaxation, aggressive ad formats may hurt the viewer experience—and your brand.

When to Selectively Disable Ad Types

Not all videos should use every format. Here’s when it makes sense to be selective:

• Short videos (under 5 minutes): Disable mid-rolls and non-skippables to keep bounce rates low.
• Content with high repeat viewership: Too many ads can discourage return visits.
• Tutorials or educational videos: Overlay ads might cover key visuals.
• ASMR, meditation, or sleep content: Avoid non-skippables and bumpers—they break immersion.

Real Creator Example: Fitness Channel Case Study

A fitness creator running 10-minute workout videos initially enabled all formats. Over time, they noticed high drop-off during mid-rolls, especially when they occurred during active sets.

By removing mid-rolls and relying only on pre-roll skippables and display ads, retention increased, comments were more positive, and revenue actually improved slightly due to better video performance in search.

They later experimented by re-enabling mid-rolls—this time, only after a cool-down section. The result: monetization returned without hurting retention.

Strategic Ad Format Combinations by Channel Type

Here are smart combinations based on channel category:

• Tech Reviews: Enable skippables, display, sponsored cards. Disable overlays.
• Kids Content: Only allow skippables or bumper ads (COPPA compliance limits many formats).
• News and Commentary: Use skippables + display + overlays. Avoid non-skippables unless content exceeds 10 minutes.
• Relaxation Channels: Stick to skippable pre-rolls only; no mid-rolls, no non-skippables.
• Productivity/Education: Pre-roll skippables + well-timed mid-rolls. Sponsored cards if product-relevant.

Use Your Data to Adjust Over Time

Start by enabling all ad types, then monitor the following:

• Watch time trends before and after mid-rolls
• Drop-off points around non-skippable ads
• Comments or dislikes that mention ad annoyance

If you’re seeing an increase in bounce rates or negative feedback, test turning off one format at a time.

You can always go back and re-enable formats if your data suggests it won’t hurt retention.

Don’t Forget About YouTube Premium

When you optimize for viewer satisfaction—fewer disruptive ads, smoother pacing—you may see more YouTube Premium watch time. This pays creators based on watch duration and loyalty, even without ads.

A creator with a loyal Premium-heavy audience can earn significant revenue even from ad-light content.