Earlier this year, Google rolled out click-to-play video ad units as part of its AdWords network (demo here). Now Google is testing in-stream video ads, a sort of video AdSense for content publishers. Here’s how it would work: Publishers upload video to Google Video, embed the players on their own sites and the Google-powered ads are embedded in the streams (currently as post-rolls). The revenue is then split. Google has been testing the in-stream ads on Beet.TV (although I didn’t see them when I checked today) and also working with MTV. Add YouTube to this equation and you have a massive network of video blogs that are shooting, posting and embedding video content, a market ripe for video advertising.
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