RSS advertising and metrics player FeedBurner is moving beyond feeds to expand the volume and type of inventory it offers to include Web sites, targeted towards publishers, especially bloggers.

It works more or less the same as the RSS ads counterpart, the site ads will be associated with individual content items or blog posts. A publisher needs to insert a line of code in their web pages and choose their options like how they want the ad the appear.

We talk a lot about feed meta data around here, and it tends to result in a loss of dating opportunities, but it’s this extra context that’s available via the feed that provides the framework for new and better ad units. Ads that shift to the latest permalinks on a site, ads that only appear/disappear once a post has comments, serialized campaigns on a page that understand page/article sequence, etc.

FeedBurner allows publishers to choose if an ad run in each content item, every other item, or every third. Current ad formats include text format or 300×250 medium rectangle image ad.

By entering this market, FeedBurner puts itself in competition with other contextual advertising networks like Google, Yahoo Publisher Network and others. FeedBurner also face competition from blog ad networks such as Blogads.

Source: FeedBurner blog.