AOL this morning announced plans to begin offering "video ticker ads," a graphic banner ad this is integrated directly into streaming video content, in what is the latest effort to find an alternative to pre-roll ads, MediaPost reports:

"The new advertising format, which was developed in conjunction with rich media developer PointRoll, is designed in such a way that it is visible on screen will a video is running, but does not obstruct the video viewing experience," according to a joint announcement between AOL and PointRoll, the company behind the technology. "When clicked on by a consumer, the ticker expands to launch a video ad, or an interactive Flash ad, within the video player window."

Here's how it works, according to the report: AOL's video ticker ad appears at the bottom of the video player 10 seconds into the video stream. When clicked by a user, the ad expands while the video pauses. If the user does not interact with the ad, it will dissolve after 15 seconds leaving the branded text link. Clicking on the branded text link, located at the top of the video player, will relaunch the ticker.

From over here, it sounds less intrusive. This concept may be a tight squeeze on a cell phone screen, but it would definitely make more sense there--no one likes watching preroll ads on a cell phone when they only have a few moments free while standing on line.

AOL Unveils Video 'Ticker' Ads, New Alternative To Pre-Roll [MediaPost]