So here goes Google’s (NSDQ: GOOG) brilliant think-tank thinking: we own this thing called YouTube, and we tied up with these media companies to provide some bits and bobs for it, and oh, we also started putting some text overlay ads on YouTube videos. Oh wait, we also started these video ad units on Google AdSense partner sites which didn’t really take off. How about this: let’s combine all those, share the resulting fun.  Synergy heaven. Yes, that is what the latest “innovation” from Google is.

Cynicism aside, some details:
-- Only about 100 media companies that have created YouTube videos will be participating. Most of them are smaller content providers, such as Expert Village, a producer of how-to videos; Ford Models, a modeling agency; and Extreme Elements, which creates videos about extreme sports.
-- The videos distributed through Google’s system will include small text ads that will be overlaid on the bottom of the video player or graphical banner ads around the syndicated player.
-- Sites participating in AdSense now can sign up to specify the kinds of YouTube videos they want shown on their pages. A website focused on automobiles, for instance, might want to display YouTube videos about cars and other vehicles.
-- Google AdSense manager Christian Oestlien wouldn’t detail the specifics of the revenue split except to say that it is “determined on a case-by-case basis,” offering the possibility that big content players will get a richer cut than amateur videomakers.

Some more details on Google’s own blog.