The Inside AdWords blog shared details yesterday about plans to offer click to play video ads on the AdSense network. The new video ads program will be tested in the U.S., Japan and Canada and ads will compete for placement with other Flash, text and image ads. They'll also be available on either a CPC or CPM basis.

From the Inside AdWords Blog:

...these ads will be supported by both site- and keyword-targeted campaigns. You can choose to serve your video ad on a specific site or on pages in our content network that relate to your product or service. As always, you have the ability to geo-target your video ads internationally, nationally, or locally.

Google is careful to note that unlike many video ads, users will have complete control over these ads. The ads won't pop over content and start playing without warning, instead they will be entirely user directed. The ads will display as a static image with button options to play, pause, fast forward and control volume as they play.

Here's an example provided by Google to show how the ads would work:

This could be an interesting addition for small business advertisers. It's not that expensive to put together a nice Flash ad with a tour of your bed and breakfast, or a video of your local band's latest wedding performance. For advertisers that are already running AdWords campaigns, it will be a great way to experiment with new types of ads without having to learn a whole new system. Add in the fact that you can use the site targeting option to play your ad on specific blogs or content sites and you've got a potentially powerful mix.