The new ad model allows users to opt out of watching pre-roll advertisements and will not charge advertisers for the skipped ad. The button will appear a few seconds after the ad begins and the model will eventually let users customise their ad experience for longer videos.
According to the YouTube Biz Blog, the company has been testing this ad model since November last year.
Senior product manager Baljeet Singh said users' propensity to skip depends on the quality of the advertisements which should encourage the advertising industry to produce better quality commercials.
Competitor Hulu, an US-based ad-supported online video portal, is already letting users choose their ad formats.