The GooTube team is not inserting advertising into YouTube clips as post or pre-rolls.  That might happen, but not quite yet.  Chad Hurley has said that in-clip ads would not be appreciated by the YouTube user base.  He may be right.   

Popupyoutube_2 So, to the monetize the extraordinary traffic on YouTube, the Google folks are doing it the traditional way — by placing banner and contextual ads around clips and channels and other indexed pages.

We discovered that those clever folks at Google are expanding their advertising offerings by selling "pop-up" ads. While searching for clips by presidential hopeful Dennis Kucinich, we came across this pop-up ad for Best Western Hotels.  When the page loaded a large banner opened and Flash video player that launched a 20 second video ad that was on a continuous loop. The page with ad is above.

— Andy Plesser      

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