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Google Testing Video Ad System

Google is testing in-stream video ads, hoping to eventually create a system, similar to AdSense, that pairs small-scale video creators and advertisers.

Google has recently begun airing 15-second commercials for Allstate in videos developed by Beet.tv, a producer of video interviews, AdWeek reports. The Allstate commercials were reportedly sold at $15 per thousand views, with the money split between Beet.tv and Google.

Google says the spots, which appear after the video, are a continuation of an earlier test of in-stream video spots that appeared after clips created by EepyBird.com, which popularized the Diet Coke-Mentos viral sensation.

Google would likely pair the new system with video content on YouTube, which it recently acquired. One possibility is to use user-submitted tags for each video to determine the type of video ad to run after the video clip.

Google is also working with MTV to distribute ad-supported clips via its AdSense publisher network.

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