Google Suggest, a drop-down feature in Google Search that auto-completes prospective searches as users type them in, now features sponsored links.
The ads currently only appear for select users. So far, two formats have been noted: a sponsored search-style text box (at left, via Groove Commerce), and a clickable URL at the top of the search suggestions, like this example provided by Oh! Nuts (via Search Engine Land):
As of October, Google commanded 72% of the US search market. Given that each box appears to house just one ad each, the space has the potential to yield premium impressions to sponsors that appear. The search giant hasn't revealed whether it plans to charge more for such placement; but if the feature is formalized, it will likely be folded into AdWords.
Google's is currently on a mission to build ad inventory across properties where none previously existed. It is also testing a number of search improvements for select users, including search results that feature reviews and other local data.
Last month it started running text ads on its Finance pages. It eventually plans to incorporate them in News pages.
Previous advertising restrictions have also been relaxed. In November Google abolished its ban on beer ads on AdWords; last week it did the same for hard alcohol and liqueur ads.