Google is testing its new Publication Ads service. The advertiser will be able to choose the ad size, set the price, and decide how to use the space. This service comes in an auction form and only ads that win the auction will be published. More information can be found here.
This does not come as a big surprise at this point. We have seen Google going into radio and the efforts to connect TV with the computer can also prove to be fruitful. The success of this service will largely depend on the prices (magazine ads can be somewhat expensive for some) and the quality of publications participating in this service. From the looks of the screenshot, these ads will be placed somewhere in the classifieds section or a business directory section of some kind.