Google confirmed it is running tests that show photographs in ads that display in shopping-related searches. An AuctionBytes reader recently came across such ads when searching Google recently for "natural mosquito repellent" (see screenshot). The ads are actually product listings containing the product image, price, and retailers' name.

A Google spokesperson said the company was testing a new ad format and wrote in an email: "At Google, we're constantly experimenting with new features, tools and visual representations to improve the user experience and usefulness of our ads. In accordance with that philosophy, we're beta testing a feature in which we're showing richer product information in the ads for shopping-related queries. This test is only visible to a small number of U.S. users." She was unable to provide additional information.

Barry Schwartz of Search Engine Land wrote about some Google AdWords tests in October and linked to similar product ads found by Steve Rubel.

Google is intent on providing solutions for retailers with its advertising, Checkout and Product Search offerings. Since the spring it has been imposing new requirements for merchants who upload product feeds to Google Base, which it recently renamed Google Merchant Center for retailers. Whether it wants to or will be able to add a pay-for-purchase model for ads seems uncertain. Currently AdWords employs a pay-per-click model.