A clarification on my previous post about house ads run by Google on publisher websites, as part of the AdSense creative.

Yes, Google confirms, it pays for the ads and enters the auction independently, so publishers are paid for those ads.

A similar confirmation (from the Google rep who posts on Search Engine Watch Forums) was received recently as a result of a forum discussion about the same issue as it relates to the ads on the search side. There, too, Google runs its own AdWords campaigns and participates in the auction like everyone else.

Read more about Adsense ads for Google products athttp://www.webpronews.com/insidesearch/insidesearch/wpn-56-20050929GoogleHouseAdscontd.html.