The world of video advertising has only just begun. Google announced AdSense units using YouTube videos, and now Blinkx will be rewarding users for sharing video online.

Google offers AdSense customers a chance to provide exclusive content by placing ads over the top of online videos. But these flash ads can be distracting if you're watching a video. Blinkx takes a different approach by putting ads at the top of the video window so that there's never an ad covering the video display.

Blinkx is a video search engine with over 14 million hours of video online. Their technology uses both speech recognition and video analysis software to accurately find videos online from all major sources and now they are integrating this into targeted ad placement.

The Blinkx text ads will get placed together with embedded videos from such popular video sharing sites as YouTube, Google Video, Metacafe, Veoh, CollegeHumor and Daily Motion. This will work with any video, be it copyrighted or not. It works by simply dropping the embed code from a video site into a form that will spit out the new Blinkx embed code complete with additional ad codes. This will then allow users to place the videos on social networks, websites and blogs to earn revenue per click. Users must have an account on Blinkx Adhoc as well as a PayPal account which they will get paid through when the ads are clicked on.

Blinkx pays you for embedding videos from YouTube, Daily Motion and other sites on your website. It doesn't matter if you created the original video or not. And it doesn't look like there's anything to prevent you from making money on copyrighted content like clips from movies and TV shows.

We assume that copyright holders might get a little uptight about that. But since Blinkx inserts an ad above the video window and not inside of it, you could argue that this is kind of the same as adding a Google AdSense unit to a webpage above content.