According to a report at TechCrunch, Google Inc. (NASDAQ: GOOG) is working on programs that will drive adoption of video advertising online. CPMs, the rate that advertisers charge customers, are estimated to be over $40 for online video. This is much higher than the rate for simple banners.

Google obviously has an edge, if it can come up with a program that both advertisers and content companies will accept. Due to its ownership of YouTube and Google Video, the company has the largest audience for video content. What it still lacks is a broadly accepted program to move TV advertising to the web.

One of the issues facing Google and competitors is whether people are willing to watch ads that are much longer than 10 or 15 seconds. Longer ads clearly offer a better opportunity to explain product features, but if web visitors will not take the time, it does not matter.

The other substantial problem is where the ads go. Do they belong in the programming or in some other spot on the web page.

With display advertising growth rates slowing and text search ads reaching a level where their year-over-year numbers are likely to be less robust, the battle for internet revenue may well turn to video.

Douglas A. McIntyre is a partner at 24/7 Wall St.

As I've said before, Google Inc.'s (NASDAQ: GOOG) goal of world domination centers around the company's capability to be the center of advertising in as many channels as possible where it can take a small cut from connecting global buyers and sellers of all sizes and wallets. With that said, Google's moves in recent years that sprout from its roots as a web-only advertising conduit to a radio and even TV advertising conduit will only grow to ensure Google stays atop the changing media landscape of meaningful advertising as the 30-second TV spot dies a slow death.

Google, on that note, has launched a CPA advertising model for U.S. advertising customers. In this model, there is an associate cost for the advertised based on every action or acquisition (transaction) between the seller and buyer. The "buyer" does not have to buy anything at all in many cases, but just perform the needed action required by the seller (such as an e-newsletter signup).

This is quite an addition to Google's pay-per-click advertising model if you ask me, and it firmly plants Google in the age of traditional advertising where advertisers and marketers pay for a successful "interaction" between themselves and a customer or potential customer. In the CPM model (cost per thousand), the advertising cost is based on "impressions" with little or no measurement on customer interest beyond electronic tracking using web bugs and associated engagement tools for advertisers. Google's move into the CPA arena will most likely make advertisers work a little harder to gain that customer, but they'll be rewarded as that customer completes an interaction with the advertiser -- making Google's advertising model even more relevant to the consumer hopefully.