From our early video test results, it’s apparent that video ad relevancy is far from tuned. Hulu may have more monetizable traffic than YouTube, but our analysis indicates the contextual search advertising opportunity around embedded videos is virtually untapped.

Our initial crawling results show that nearly 30% of blog pages contain an embedded video. Over 50% of these pages had ads so we checked to see if the ads were relevant to the video content.

Not so much.

We sampled the embedded videos, and the results were eye-opening and often hilarious. Low-carb diet ads paired with Chevy Chase skits. Anti-wrinkle cream spots next to Paintball safety videos. Kelly Moore paints next to a Miley Cyrus dance-off.

The revenue per video must be abysmal on these examples. Multiply this opportunity by the tens of thousands like these that proliferate across the Web daily.

Perhaps this opportunity will finally bring AdSense and publishers closer together? In exchange for a share of all advertising revenue generated from their content, publishers can provide AdSense and others with an API containing the location of their embedded videos and associated meta data to increase the relevancy of ads. Increase the relevancy, increase the revenue. Expand the pie for everyone.