Revver, an online video sharing site, announced the beta launch of its Viral Advertising Network (VAN) that offers users the option to add static ads to their user-created video to share in advertising revenue.

The company's move is seen as a way for it to compete with rival YouTube.com.

"Revver is a next generation service for the online video market," says Steven Starr, founder and CEO of Revver, Inc. "We embrace the viral power of the internet to help people benefit from the popularity of videos no matter where they are viewed online. By leveraging the internet as one big platform for commerce, Revver has created a real marketplace for this new medium."

Microsoft, American Apparel and MTV have been among the first advertisers to use Revver's service, reported AdAge.com.