Does running an 𝑰𝒏-𝑺𝒕𝒓𝒆𝒂𝒎 𝒀𝒐𝒖𝑻𝒖𝒃𝒆 𝒂𝒅 damage or impede the future “organic” performance of an uploaded video? Answer: most likely.
YouTube excels at presenting streamers with videos to watch that it thinks they might be interested in, which is why it’s so critical to optimize your uploads accordingly.
Ultimately, YouTube’s algorithm considers two (2) principal factors: A. Click-Through Rate (CTR) and B. Watch Time (aka, “Audience Retention”).
🅰️ CTR means that when a prospective viewer is shown your video—in a YT search, as a recommended video, or somewhere on YouTube’s homepage, for example—YouTube checks how often viewers click to watch. The more clicks, the better (algorithmically speaking).
🅱️ Watch Time refers to the aggregated time viewers spend watching a video. The longer viewers watch a the video, the better its performance.
With, especially, “Skippable” In-Stream ads (far more cost-effective ad formats than “Non-Skippable,” just FYI), the viewer is given an option to “SKIP AD” after 5 seconds, which, if clicked, ultimately hurts your vid’s CTR. While YouTube analyzes the traffic source of the view—that is, how the viewer found your video (e.g. search, browse features, or via an ad)—whether it was paid or organic doesn’t technically matter from an algorithmic standpoint.
Granted, if your ad’s watch-retention is off-the-charts good, then (theoretically) it shouldn’t be a problem. That’s just not the norm.
Notwithstanding, it’s worth noting that some experts have suggested that videos utilized ads essentially give up the possibility of organic performance over time. In other words, once YouTube learns your willing to pay for performance, then, in a manner of speaking, 𝚝𝚑𝚎 𝚐𝚒𝚐 𝚒𝚜 𝚞𝚙.
My thought is, if the video is TIME-BOUND, like a monthly market update, for instance, then its hopes of organic performance over time are nonexistent anyhow due to the short-lived nature of its content. So use it for an ad! On the other hand, if the video is TIMELESS, think twice before you run it as an ad.