Earlier this week, Google announced the inevitable: the addition of embedded in video advertisements to YouTube. 

Appropriately called InVideo ads, these will start to appear more and more in any videos you watch from now on.

The blogosphere has mixed results about the new feature; publishers are eager to make money off of their video offerings and users want a clean, uninterrupted experience.

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Yesterday, Google YouTube officially debuted its new in-video ad delivery system.

After weeks of experimentation, the first embedded video advertisements went live.

Trawling my selection of news feeds this morning, I came across several rather amusing bits on a spat (well, maybe not a spat, but I’ll put the word to use here anyhow) being had between VideoEgg and YouTube.

The former is more or less accusing the latter of stealing its overlaid-ad thunder. 

The latter’s response, well, actually there’s been no response, from what I gather. 

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YouTube are continuing to experiment with embedding advertisements in videos after beginning to test adverts back in May. The ads are reportedly being sold for $20 per 1000 views and we are still left wondering about how YouTube will be working out its revenue share with video producers.

The company has now begun to display overlaid advertisements, shown inside a 20% sliver of real estate at the bottom of the video window.

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The uptake of online video by the advertising industry is a pretty logical progression. A picture as they say is worth a thousand words, so god only knows how many words a video is worth; come to think of it what is a single word’s economic worth in advertising dollars? I’m digressing here…

Up until now, VeryFunnyAds has enjoyed virtually no competition for its ad centred YouTube clone. It seems however, as we have reported before, that come 2008 a new kid on the block called Didja will be looking to claim some of the 63 million views that VeryFunnyAds clocked up over the last year.

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Online classified ad site Listasaurus has got the jump on its ubiquitous contemporaries (Craigslist and Gumtree in the US and the UK respectively), by allowing users to add videos to their listings.

Although not the first video ad site, Listasaurus allows users to choose whether or not to use text, video, photos or all three which is certainly handy.

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Speaking at iTV Con on Tuesday, a trade conference dedicated to Internet television, Google’s Vicent Dureau told industry players and reporters that traditional television is facing an identity crisis that means it is close to death.

“On the surface, television as we know it looks dead. But the future of television is actually pretty bright,” he said, referring to add what an internet-based vision could offer.

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Advertising for online video sites is evolving at a pace to match the increase in popularity these sites are seeing. A new model is now here which could replace the cost-per-mille (CPM) trend which has been mainly used up to now.

We’ve seen plenty of new online video advertisers claiming to have the latest new and unique approach to online video advertising. Fresh on the scene is LiveRail which is currently in a closed beta testing period. But is this new company really adding any new ingredients to the online video advertising mix?

Meet LiveRail

LiveRail has taken the approach taken by this newcomer to the video advertising space is significantly different from the norm.

Unwieldy text-based ads are nowhere in sight, either in or outside of the video player frame. Tiresome pre-roll advertising, which forces viewers to watch an ad before the video proper begins, is gone. 

Pointless advertising tacked on to the end of the video, and subsequently ignored by viewers is mercifully absent.

So how exactly are these people proposing to make money for their advertisers and publishers?

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