The blogs and news sites are buzzing about a NY Times blog post that has official word that Google started "testing video ads on some pages of search results," yesterday. I have not seen any examples of this test in any of the forums I track, so this must be an extremely limited test.
We knew that Google would be trying these ads out for a while now. It will be interesting to see the implementation. Remember the when we discovered that Google Places Image Ad in Search Results! Maybe it will be like that? Here is a picture:
Or maybe they will be along the right hand side? I doubt we will see adds between the organic listings.
Danny Sullivan has word on the pricing model, explaining advertisers pay on a CPC model. We do have some older data on Google video metrics within the AdSense network. Plus Danny has some more examples of what these ads may look like, but who really knows? As soon as I see any, I will post them here.