Google has just launched a brand new type of ad unit for AdWords that is now in Beta, called the YouTube Video Targeting Tool.  Every time there is a new ad marketplace that opens up, there is a massive displacement that can be taken advantage of by savvy marketers.  The people that jump in early are going to have a definite advantage in this game.

One of the coolest things about the new YouTube Video Targeting Tool is that you can get very specific with your targeting, right down to selecting individual videos.  You can also target by demographics, channels, and some other methods.

You can choose from two different ad units, InVideo Overlay and In-Stream Video.  The InVideo Overlay can be setup as Text Ads or 468×60 image ads.  The In-Stream Videos are a “15/30 second in-stream video + image companion”.  I’m not exactly sure what that boils down to, since I haven’t had the chance to actually put any ads live yet.

People have been marketing via YouTube for quite a while now, especially in the Ringtones space.  The tried-and-true method is to rip the music video of your favorite artist, put a watermark on it with your Domain leading to the Ringtone offer, and try to get as many views as possible through both natural and artificial means.  This method has become less and less effective as YouTube has been getting wise and closing some of the loopholes used to inflate views to videos and game the rankings.  This new Video Targeting marketplace could be a game-changer for people that have been looking for a way to have a sustainable business model on YouTube without worrying about the impending Account Bans and Video Bans that come with the old method.

The only odd thing I noticed when playing with the interface is that when I searched for some of the YouTube mega-hit videos like the “JK Wedding Dance” and the infamous “Leroy Jenkins” video, they didn’t appear in the list.  Also, most of the videos that were in the list seemed to have relatively low view counts.  I’m assuming that this is because the program is in Beta still, and hopefully the big videos will be fair game once the program has the kinks worked out.

So what are you waiting for?  Head over to http://google.com/videotargeting and check it out!