The small screen, built into a cardboard insert, contains an advert for Pepsi Max and trailers for US TV network, CBS.
There are also in-built speakers, so the viewer can hear the advert too.
"This is an extraordinary way to refresh how we interact with consumers," said Pepsi-Cola's chief marketing officer, Frank Cooper.
Chip technology is used to store the video - described as similar to that used in singing greeting cards - which is activated when the page is turned.
The slim-line screens - around the size of a mobile phone display - also have rechargeable batteries.
Each chip can hold up to 40 minutes of video.
BBC News' Los Angeles correspondent, Rajesh Mirchandani, said that the magazine advert was mounted inside a cardboard insert, so it was "instantly distinguishable from a normal flimsy page".
CBS and Pepsi won't say how much this limited commercial trial is costing, but manufacturers Americhip told BBC News that a multi-thousand print run with built-in screens would cost in the region of US $20 (around £13) for each magazine.
This has prompted criticism from some quarters, saying that the internet has already been delivering video-embedded-in-text for some time.
