The record label has partnered with Havas Media Network and in-video advertising expert Mirriad to enable branded assets to appear retrospectively in music videos.
The move will enable UMG to offer product placement on-air, online and on mobile that can be tailored to different markets allowing different products to feature in different countries.
Havas Media, which has clients including LG and Coca-Cola, is the first agency to sign to the service.
Mirriad, which launched in May with distribution partner Vevo, says native in-video ads can be executed with the "same reach and frequency" as traditional ad campaigns and claims brands are twice as likely to be top of mind with consumers comparable pre-rolls or "interstitial" spots.
Lucian Grainge, chairman and chief executive officer, Universal Music Group, said: "With Mirriad’s highly customizable platform, we have the ability to insure that artists’ and brands’ interests are aligned while we remain focused on presenting fans with the most compelling music experience possible.
"Through innovative technologies such as Mirriad’s, and leading global agencies such as Havas, we can offer our artists additional opportunities to generate revenue from their music videos."
Mark Popkiewicz, chief executive officer, Mirriad, said: "We designed Mirriad with content producers very much in mind so our platform allows all stakeholders to painlessly review and approve campaigns ahead of launch."