The Video ads are similar to other image and text google Ad formats, Video Banner Ads can be either cost-per-click or cost-per-impression. The Video Ads looks similar to a Image Ads where the user clicks to view the video content of the ad. Looks like the ads will be in flash format. It requires macromedia flash player to view these video ads.
Google's announcement came a week after AOL said that it had acquired Lighteningcast, a company that sells video advertisements on about 150 sites, including Space.com and Nascar.com. Lighteningcast will be merged with AOL's own Advertising.com unit, which mainly sells banner advertisements on other sites but is also getting into sales of video advertising.
Source: Google video ads
Example: Google Video Ads
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