A week after announcing being knighted as an AdWords reseller and working with Google to offer video ad creation to its advertisers, SpotMixer has been integrated directly into the Google TV ads dashboard.

This will position it more directly as a video ad creation engine within the AdWords work flow. Previously Google TV Ads offered an ad creation marketplace which connected video advertisers with professionals that could work on the creative elements of their video campaigns.

After videos are created, users can go through a step by step process in the Google TV ads dashboard to place these video ads with Google TV’s distribution partners. For existing AdWords advertisers this will include recommending placement and targeting options based on existing PPC campaigns (see video).

This is a big move for SpotMixer, which will give it access to the growing ranks of AdWords advertisers that are beginning to create and distribute video ads through the Google TV Ads program. Overall video advertising is on the rise (eMarketer); Google’s entrance should shine more light on SMB video and accelerate advertiser adoption.

Its attractiveness will also increase as Google uses its weight to continue to sign distribution partners (currently include Dish Network, Harris Corp., Bloomberg Television, the Hallmark Channel, and NBC Universal). This includes inventory across all channels and day parts within these networks, according to Google representative Elisabeth Diana.

As for SpotMixer, it’s exemplary of the current priorities for each player in the SMB video space: sales and distribution. Each of these players is finding different channels; TurnHere has been very successful with IYPs, Mixpo with vertical networks, AdFare with newspapers, and Jivox with its own ad network. This will be the factor that makes or breaks all the vendors in this space going forward.

SpotMixer has come out of nowhere with possibly the best strategy/positioning of all (who knew?). This will be a big boost to its sales volume and a good test of its technology’s quality, ease of use and ability to scale.