However, if I was at home, opened YouTube just to entertain myself and opened one of the algorithm suggested videos, then – in that situation – an interesting video from a channel that is unknown to me, inserted as an ad could hook me and could lead to me subscribing to said channel.
Instead of that suggestive ad being inserted into the video. Why not use auto-play or recommended videos section? Suggested videos in the menu work great, better even, in your case scenario for content discovery.
I don't watch YouTube with ads and I don't subscribe to YouTube Premium but I pretty much doubt in-video content suggestions disguised as ads will do a better job of predicting what I'll watch next over menu video recommendations.
I'm not happy about seeing MKBHD's video in that restaurant, I don't care at all. I also don't care about seeing that ad (or any ad for that matter).
The original comment I was replying to mentioned watching a 40 minute music video placed as a YouTube ad. I chimed in with my experience of seeing a long tech review video placed as an ad.
>I found it pretty smart, because I can imagine myself succumbing to watching a full video that was inserted as an ad if it's interesting enough.
I'm not praising the ad as a user. I'm explaining why it might be smart from the POV of the advertiser (in this case MKBHD), because it serves their goals.