Through rigorous testing rolled out last May, it seems that Google has finally settled on it’s much anticipated AdSense for video model. YouTube has settled with what they call “InVideo” ads, which will follow the typical AdWords process of competing in auction. The InVideo ads are paid on a CPM basis, and text overlay ads will be paid on a CPC basis. You can view examples of all of these ad types on Google’s website.

Here’s the catch, publishers who want in on this must serve a minimum of 1 million video streams per month. Other publishers can add AdSense ads to YouTube partners’ video content though. Seems that InVideo Ads are launching with a whopping $15 CPM (which is actually down from the $20 CPM initially launched during testing).

Google has labeled this AdSense solution as combining “engaging and non-intrusive” ad formats. Advertisers, despite this hefty CPM, will be jumping at the chance to utilize this feature, because of YouTube’s larger than life video catalogue, and just for name’s sake. One engaging question will be, how will the consumer that is viewing these movies respond to YouTube “going commercial”? YouTube’s following has long lived on the notion that this is all free, and the typical user has been able to easily navigate around name-brand’s sometimes futile attempt to advertise for free (in a non-transparent manner) by building a YouTube profile. So now I ask, will the average user balk when they see these ads rolling into their day-to-day viewing routine? I strongly feel that it will be a minor disturbance at best to start, and then the average eye will be accustomed to seeing these ads in the lower-thirds. At least they didn’t move to the annoying “mute-your-speakers” pre-roll!

Another thing to note, is that they are releasing this as a “beta” product, but we all know how little that means in Google world since Gmail is still a “beta” product, and half the nation is using that.