Google's YouTube has launched a new ad model which allows advertisers, such as New Line Cinema and BMW, to run rich media and video ads within either professional or user-generated content.

The new InVideo ads are semi-transparent overlays appearing at the bottom of the video player. The rich media animations show up 15 seconds after the selected content starts, and overlays up to 10 seconds. The ads also have interactive functionality, which allows users to click an advertiser's URL to launch a new player on the original window, or to go back to the content at any time.

Advertisers are able to target users by demographic and media usage data, and YouTube will provide information on how much of the video is viewed.

Since Google acquired YouTube, the most trafficked online video site in United States, in October of last year, analysts and shareholders were waiting to see how Google would monetize this $1.65 billion investment. According to Shashi Seth, YouTube's group product manager, the advertising team has been testing various models and collecting feedback from advertisers and users.

"For the past three months, we've run millions of impressions to see how users react to the different models, and we've taken away the models that don't work. For example, we know that users don't want to be interrupted at the start of a video, which is why the overlay doesn't start until 15 seconds in," Seth is quoted as saying in a Media Post article.

Around 20 advertisers are currently using InVideo ads, including New Line Cinema and BMW, and the new model will be available to more marketers in the weeks and months ahead, he added.