The ads are being tested in U.S., U.K. and in Germany and are priced similar to how normal AdWords ads are priced, based on auction. Google has a whole help section for Mobile Ads here. It explains what the ads look like; “Mobile ads contain two lines of text, with a limit of 12 or 18 characters per line, depending on the language in which you write your ad. Your destination URL appears on a third line if you choose to enter one.



Google has applied a for a PPCall mobile patent but this doesn’t seem to be tied into that. There’s more information here.

Given the consumer appetite for local information in a mobile environment, this will be valuable inventory for geotargeting advertisers.