Google has launched a new interactive ad format called Google Gadget Ads that are designed to act more like content than a typical ad. They run on the Google content network, competing alongside text, image and video ads for placement.

The new ad format supports both cost-per-click and cost-per-impression pricing models, and offers a variety of contextual, site, geographic and demographic targeting options.

Gadget ads can incorporate real-time data feeds, images, video and more in a single creative unit and can be developed using Flash, HTML or a combination of both. They are built on an open platform, allowing anybody from individual advertisers to agencies to set up and run ads on the Google content network. They do not command any serving or hosting costs.

In addition, users can build active communities with gadget ads by sharing them with each other and placing them on nearly any webpage, including personalized iGoogle pages. According to Google, "These portability and sharing capabilities simultaneously generate additional free traffic and help foster a sense of community between advertisers and users."

http://www.google.com/adwords/gadgetads