GigaOm network’s NewTeeVee.com is reporting about a new format of video ads being tested on Youtube in what seems to be the best and smartest effort in monetizing the video sharing social network since Google acquired it.

As can be seen in this screen shot, a text ad is placed below a playing video which can be clicked to pause the playing video and play the video advertisement. The good thing is, viewing the ad is solely the user’s discretion and the ad can also be played once the video has been entirely watched.

I can not see the ads here yet, I am guessing that they may either be geo-targeted or google might just be testing them for now.
NewTeeVee also notes that ads are not displayed when a youtube video is embedded to a web page outside of youtube.
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