Google will launch a public test to show display and video ads on Google Video.

Google plans to announce it will stream for free some premium videos on Google Video which are normally fee-based, and accompany them with a banner ad and a video ad.

The banner-like ad will be displayed for the duration of the video on the Google Video player interface, while the video ad will be shown after the clip ends, sources said.

The ads and the videos will not be matched at random. Instead, advertisers will choose the videos they want to sponsor. In this manner, advertisers will avoid having their brand associated with a video they find objectionable.

The Google Video test may be short, running for only a week, and the ads will be attached to about 2,000 videos from about eight providers. The videos will be from professionals, not amateurs. The test involves about five advertisers who are paying to participate.

After the test, Google is likely to continue revising and refining how it plans to display graphical and video ads on Google Video, sources said.

Google is probably responding to advertiser interest and feedback. It may also be testing ways to attract more users to Google Video, by making some fee-based videos available to all visitors. Currently, Google Video clips are either free or fee-based. Until now, video clips haven't been supported by ads.

Google, whose revenue comes almost entirely from pay-per-click text ads, is under pressure to diversify its advertising mix.

Find - or begin - a discussion of this story in Macworld UK's busy Forums.