If you’ve got the kind of product or service that needs demonstrating, Google video ads look very promising. On the other hand, putting an extra click between the visitor and the advertiser is probably going to lower CTR compared to text ads. But the visitor might be more qualified so I predict the conversion rate will increase. The real test of video ads will be ROI.
Also, you’ll have to convince Adsense publishers that it’s a worthwhile switch from text to video ads.