Google (GOOG) Testing Video Ad Service

Google (NASDAQ:GOOG) is working on video advertising service on the Web, which will bring together publishers and advertisers, including those using its popular YouTube site.

According to Neal Mohan, a Google vice president for product management, the video marketplace is being developed within within its DoubleClick Ad Exchange.

It'll be similar to other exchanges which sell interactive and graphical, or display ads, as they're called.

Mohan said if the experience in display ads "is any indication, the promise of video for publishers is pretty tremendous."

This could also encourage a higher quality video to be produced on the Web, something that's been holding back video ads.