Google AdsenseGoogle has announced that web site owners can embed YouTube videos and make money. This will certainly boost Google’s already successful online ad business and give web publishers a way to earn more money on their sites. Now we can see how Google may finally profit from the acquisition of YouTube.

This expansion of AdSense called Video Units, allows web site owners to choose whether they want a static banner ad that sits on top of the video player or a text overlay ad that appears 10 seconds into the clip and covers up 20 percent of the bottom of the screen. The videos are from Google content partners sharing in a cut of the revenue from accompanying ads. Advertisers are charged on a cost-per-click or a cost-per-impression basis.

Web site owners can choose between a mini, standard or large video player and can customize the color scheme. Google has tested distributing in-stream video ads and in-stream video clips with bundled ads, but apparently finds that banner and text ads work best.

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