A great snoop from 45n5, a video with Google advertising in YouTube movies. The system is pretty smooth, the ads are not that intrusive, and the interactivity allowed amazing (be able to link an ad to a movie, and make that movie run over the YouTube movie is great):

Meanwhile, eMarketer expects online video advertising to nearly double in 2008 to $1.3 billion USD, and TechCrunch posted an excelent article, with a round up of the possible players in this market, worth reading.

Great times are expected in a near future.