Embedding video ads in websites is definitely the next logical step in online advertising market and Google have used their adSense blog to announce a roll-out of their adSense for video :

We know that publishers are quickly adding video to their sites and looking for ways to earn additional revenue. If this sounds like you, look no further than AdSense for video, our solution for qualifying publishers. You may remember that we announced AdSense for video as a pilot last May.

Since then, we've tested a variety of ad formats with the interest of users, publishers and advertisers in mind. As a result, we've decided that AdSense for video will use the InVideo ads adopted on our own property, YouTube, which enable advertisers to make a single buy at scale. Also competing in the auction - and unique to AdSense for video and AdSense video units - are text overlay ads which are contextually targeted to signals in your videos and on the page where the video lives. The InVideo ads are paid on a CPM basis, while the text overlay ads are paid on a CPC basis. You can see ad demos here. While we'll continue to test a variety of ad formats, we believe that overlays are the best way to balance user experience with the needs of our publishers.

AdSense for video is now available to publishers who, at a minimum, serve one million video streams each month and are based in the U.S. with English language sites. In the near future, we do plan to expand the program to more publishers of various sizes and locations.

You may be wondering how this offering differs from the other video advertising solutions that AdSense (and YouTube) have rolled out in the last year. To give you an overview, we've launched a site at www.google.com/videoadsolutions.

To apply for AdSense for video beta, please visit the AdSense for video page on the Google Video Advertising Solutions site. You can also learn about the various ways to earn revenue from video content by watching this video.