I initially caught word of this last night from Loren Baker, who sent me an email while he was out at SES in San Jose. I wanted to post it up to SEJ, but Arnold had already beat me to it.

If you’re interested in checking out what the new ads look and behave like, check out these examples from Aaron Zamost at Google:

Warner Album Browser running on Warner Music Group video

20th Century Fox’s The Simpsons running on Warner Music Group video

New Line Cinema’s Hairspray running on Ford Models

BMW 3-Series Convertible running on Killswitch Engage

And here’s some additional commentary from Aaron:

YouTube InVideo Ads details:

– YouTube InVideo Ads are animated overlays which appear at the bottom 20% of a video shortly after launching. If interested, users can engage in a deeper interactive experience by clicking on the overlay. This experience can consist of a video advertisement or Flash interactive takeover. The original video is temporarily paused and the user can always restart play by closing the ad. Note that if a user does not take action on the overlay, the ad will close.

– The ads are presented within partner content and targeted by channel: genre, demographic, geography and time of the day.

– YouTube will not place advertisements on all YouTube videos. YouTube is only placing ads on content from select partners.

More at the YouTube blog too.