It lets anyone with embedded video on their blogs place contextually relevant text ads inside them even if the videos aren’t ours. To test it, we pulled a YouTube video about Halloween made by One True Media, for example, and inserted ads onto it. We could make money on it by showing it VentureBeat, if we wanted. See image below. Note it gives you the option of showing the ads inside or outside of the video.
A company named Revlayer had done something similar a few months ago, but disappeared a day after launching. However, it was more obtrusive, placing an entire banner over a video before it started, and wasn’t necessarily contextually related. It’s site is still down, as of this writing.