After reading “Making YouTube pay off” in forbes I guess we will start seeing how the big G starts to make a profit from the video site’s millions of user-generated clips. It was about time, after spending 1.65 billion dollars buying YouTube, to see them seeking ways to integrate advertising.

Google has tried inserting overlay ads into videos, and on Tuesday, it launched a new program to distribute ad-laced, commercially produced YouTube video clips to sites through its AdSense network.

They comment also the fact that UK based company blinkx has the tool to make video advertising work:

blinkx lets online publishers place targeted text ads in any video embedded on a Web site based on the actual content of the video. Google figures out what ads to pair with a video based strictly on the video’s title and any keywords attached to the clip. Blinkx software “listens to” and “watches” the video, then inserts text overlay ads based on the spoken words and to some extent, the images in the clip.

It will be interesting to see what is the key technology that Google will use to make flash video return profits.