The Yahoo Search Marketing Blog has officially announced the launch of video and image ads within the search results. Currently, you can see the results for searches at Yahoo on esurance or pedigree. Here is a screen shot of it in action:
A search for Pedigree returns a video ad at the top:
Clicking on the video will open up a video player:
Yahoo has been testing video outs with select partners for a while. We saw it with Honda video ads in March of last year.
Google has also been doing this, the most recent post we have on that is also from March of last year.
Forum discussion at WebmasterWorld.