Yesterday Google announced (from the NYT):
"that after months of testing various video advertising models, it was ready to introduce a new type of video ad, which it said was unobtrusive and kept users in control of what they saw."
"The ads, which appear 15 seconds after a user begins watching a video clip, take the form of an overlay on the bottom fifth of the screen, not unlike the tickers that display headlines during television news programs ... A user can ignore the overlay, which will disappear after about 10 seconds, or close it. But if the user clicks on it, the video they were watching will stop and a video ad will begin playing ..." more from the NYT
What about the advertisers? I agree with Scott Karp (Publishing 2.0), the InVideo ad format is much less annoying than pre-roll videos or alike, but Google also must offer advertisers a way to influence where their InVideo Ad will be played (offered) -
Via / more about this side of the business from Scott Karp at Publishing 2.0
Google 'AdSense For Video' Starts Testing