It appear that Google is testing ad placements but not geo or behaviroral  not targeting. They may also be examining the quality and nature of data that can be retrieved from an ad like this on a SERP.

The downside in moving forward with this for Google is twofold. Firstly, the non-intrusive clean interface and results are a big part of the Google experience for searchers.

Google is currently sitting on an enviably profitable search pie but as their share of the search market edges around the 70% mark they may be looking at places to wring more bucks out and continue their stellar growth. YouTube has been the obvious place for them to monetize but they know search the best and have been the most successful at finding dollars there. There’s an awful lot of room on those SERPs – filling some of it with lots of money…er…advertising must be very tempting even as it puts one of their strengths in jeopardy.