Yesterday Euclid Media, a California-based video ad company, launched technology that enables users to monetize streaming videos.

The service lets advertisers insert brand images into videos, weaving ads right into the fabric them — on the cover of a pizza box, a shopping bag, a wall, or a moving truck, for example — with the possibility of removing or changing them to allow for repurposing content. (Try the demo.)

A similar tool, SmartAds by Keystream, locates blank spaces in video ads and fills them with marketing messages or images.

The tools work on the video itself and don't require a special video player, enabling content creators to syndicate content directly to common sites like YouTube and Hulu.

Euclid's stock video customization allows SMB advertisers to quickly create ads by inserting their logos, animation and other creative into stock video, making stock video ads from DIY video ad platforms (Jivox, Mixpo, Spotmixer) more valuable.

EuclidMedia was founded in 2007 by two Berkeley Ph.Ds, and competes with Stanford-based Zunavision and Innovid, a company from Tel-Aviv, reports NewTeeVee.

In March '08, Jivox introduced an online toolguide for small businesses to create and target web video ads, allowing advertisers to upload creative or select from an available catalog of assets to insert in templates.