You've heard the expression "Content is king." We completely agree, and we also realize that these days website content is much more than just text -- it's also video. That's why we're excited to announce that this week, we're launching a pilot with a small group of publishers to test streaming video ads in their online video content. With this pilot, publishers control when the ads play in their videos and choose which videos get the ads.

We know there's a lot going on in the world of video, and you may be wondering how this relates to other video initiatives we've announced in AdSense.
http://adsense.blogspot.com/2007/05/...-near-you.html

This really sounds interesting!! Take a look at the post, google explains how they are bringing in video ads.