Google Testing New Drop Down Adwords Ads?

As I was searching via Google the other day, I stumbled up on a new Adwords ad display I’ve never seen before (see screenshot below).  Essentially, this format only displays one sponsored ad until the user clicks on the drop down arrow. This could have HUGE impacts on ad positioning and performance as the #1 spot will clearly drive the majority of clicks and impressions.

Google Testing Drop Down Ads in Adwords?

I can also see this as a major monetary play on Google’s part as click costs will very likely increase with advertisers trying to bid for top positioning and share of voice.

I’m curious – has anyone else seen this ad format? What are your thoughts?

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