Yesterday, Google announced that they are testing new ad formats that among other things will include video. This is how they explained:

Text is often useful, but sometimes videos and pictures are a more effective way to receive information. For example, if you want to learn a magic trick, a video showing you how to perform the trick is likely the best result. So over the past few years, we’ve blended videos, images, maps and more into the search results on Google.com.

While I have seen many Google video ads on different websites and blog I have yet to see one of these ads in the search results. But according to Official Google Blog US residents have seen these ads:

AdWords advertisers had an option to create video ad for quiet some times. It would be however difficult for real estate agents to benefit from these video ads in the search results because the longest ad that you can create for your AdWords campaign cannot exceed 120 seconds. Hardly enough time to make a quick video tour of your listing! I am sure however that many creative and innovative real estate agents can use these video ads to promote their real estate business.

When I read the headline this morning for the first time on AdWords Blog, I thought to myself – “This cannot be good!”. Auction means bidding against your competitors, and when the bidding wars will get out of hand, the end user will suffer.

Well, Google found the way around it by keeping the ad quality in the auctions. Watch the video for yourself and let me know what do you think. It makes a lot of sense to me.