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Streaming video service Dailymotion launched a new tool this week that gives web publishers a way to start making money when they embed videos into their site.

The tool, called Matchbox, is basically a widget that features a carousel of videos from Dailymotion. Here’s how it works, according to the company’s announcement:

From the Dailymotion Publisher Dashboard, users can generate a customized code for simple embed once the widget format, content and targeting options are selected. Video results are made relevant to the content of each individual page through keyword matching based on Dailymotion’s proprietary search algorithm. Results are adjustable by layout and can be featured as a Dailymotion, single player, image list, text list or carousel. Content can also be filtered ahead of time by limiting results to a specific channel, group, playlist, user or language.

The tool automatically reads the content on any page a publisher selects and auto-generates a set of relevant videos. For example, a TMZ article about Joseph Gordon-Levitt would pull up a slew of videos within the carousel featuring the actor.

The incentive for publishers is that they get a 20 percent cut on all the revenue generated from the videos played on their site. All they need to do is apply a syndication code given to them by Dailymotion to track all the videos watched from their site.

“We wanted to enlarge the footprint of our player by creating a good experience for those that use the widget,” said Dailymotion’s U.S. managing director Roland Hamilton in an interview with VentureBeat. He said that this is also a good way to provide incentive to smaller web publishers who would like to “enrich” their articles.

The Dailymotion team gave me a demo of the process yesterday, and it was very easy to set up. For smaller publishers that have a handful of pages that get excellent search engine results traffic, these Matchbox widgets could provide a nice source of new revenue, provided they place the widget on those particular pages.

The Matchbox widget is available immediately to all Dailymotion publishing partners.

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