ClickZ is reporting on Google’s limited test of in-stream video ads using AdSense.
According to Google, participating sites within the network will test using each publisher’s Flash player, instead of on YouTube or Google Video-hosted executions. Ad creative will be less than :30 and made skippable for users. Publishers will be able to select which videos to monetize, and track their performance using AdSense. Publishers can also choose where the ads will appear within the videos. Akin to standard AdSense deals, ad revenue will be split between the website publisher and Google.
I can see there being a demand among those companies that publish a lot of their own video content, but not sure how well this service is going to scale. If they’re relying solely on third-party publishers of video content, Google may not make a lot from this new channel. However, if you’re using this as a way to test in-stream video ads, before you make them live on YouTube, then messing with someone else’s audience is a smart move.
One last thing of interest - video viewers will be able to skip past the ads. Doesn’t that defeat the purpose?