Google announced Google Gadget Ads, available as beta only that means a few select AdWords advertisers can test drive this Google offering now. Advertisers and marketers would now have more options to engage the customers and to interact with them in a meaningful way.

As per Marketing Pilgrim:

* The ads are interactive
* Google Gadget Ads can incorporate real-time data feeds
* Different targeting options - contextual, site, geographic, and demographic
* Built on an open platform - open to anyone
* They can be placed on any web page, including iGoogle
* Detailed interaction reports - track dozens of actions within each ad unit

Ad in this new Google Widget format are interactive and are available in both CPC (Cost per click) and CPI (Cost per impression) pricing and could be build using html or flash both.

See also: Good articles at Business Week and Google Blogoscoped