I can't go into what his method is exactly, but I did find some ways for him to improve on his auctions as well as get a greater ROI.
Currently, he is using a paid video hosting service of some kind as it made it easy for him to embed instantly into an auction.
What I noticed was a couple of ways to improve his campaigns and get a bit more exposure.
He was unsure of how to embed from youtube, so I'll share with you today a fairly detailed step by step of doing this.
One thing people seem to miss with video is that you need to add descriptions where ever you can. Google can not "read" or see what is on the video itself. It is up to you to actually add some words.
I know it seems redundant, but it is still a necessary evil - until the day where G figures out a way to scrape the audio and translate it for you.
His auctions were going strictly with just the video, and I have suggested to him adding some copy into the auctions as well.
If you've never posted anything on ebay before, you may get something out of this as well - the second video in particular.
One thing is that you will see the Youtube logo on the video in the auction - but I don't think visitors are going to be swayed into going to Youtube after watching. When they are on ebay they are really looking to buy something.
Also, I would recommend if you are watermarking these auction videos, that you put a watermark that is the address of your Ebay Store or ebay about me page so should they wind up somewhere else you can help direct the traffic back to yourself.
Part 2 (if this looks fuzzy it is still processing - fresh out of the oven)