The news: YouTube is venturing into late night TV with “Outside Tonight,” a weekly live show set in New York City. It also announced plans for other exclusive content Thursday.

Google president of Americas and partners Sean Downey presented the new material as a way for advertisers to integrate with creators: “I want you to see what the content looks like, what it feels like, how it’s coming, and then you can start to brainstorm ideas to be a part of that incredible storytelling,” he said, per The Hollywood Reporter.

Why it matters: YouTube is taking over connected TV (CTV) streaming watch time. It makes sense for the streamer to integrate more live experiences to compete with linear TV. Meanwhile, Netflix and Disney are trying to mimic YouTube’s success with vertical videos and user-generated content, respectively.

Combining live late-night TV with streaming content creates new avenues for advertisers to zoom in on niche audiences. Half of YouTube’s top 10 channels are geared toward families and children, and late-night programming expands ad opportunities within adult-centric formats.

Beyond a new avenue for advertisers, YouTube’s new original content will feed into Shorts, boosting vertical video content without resorting to AI-generated videos.

What else is coming? YouTube isn’t stopping at live TV. More original content is on the horizon.

• Trevor Noah announced a stand-up special filmed in South Africa. His YouTube podcast has more than 400,000 subscribers on top of his 4.31 million channel subscribers.
• Ms. Rachel will debut a special about friendship, leaning into YouTube’s vast family programming.

What this means for advertisers: YouTube’s late-night foray presents a unique opportunity to capitalize on a typically linear format that has staying power. If viewers miss the live show, they can stream later.

Just 22% of B2C marketers use livestreaming as part of their content mix, per HubSpot, leaving a wide opening on a proven channel for advertisers to jump into the medium.

In addition, the streamer’s dynamic ad segmenting gives brands the chance to work with creators to swap livestream late-night advertising with more family-friendly content during the day, expanding reach and potential for product discovery.