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I am for sure one of the smaller number of people doing this, but I watch YouTube on my TV using the TV app. As a result I always had to watch ads. I wish I could avoid them. I suppose a could watch from an alternative and then AirPlay it to my TV, but that’s about it.
Changing your router DNS to something that blocks ads (or a pihole at home) and you’ll never have to watch ads ever again, YouTube or elsewhere
YouTube video ads can’t be blocked with just DNS blocking unfortunately, they are served from the same hosts as YouTube videos.