Last week, Google AdWords released a new easy-to-use ad format called Google Gadget Ads, which is an interactive, rich media ad format that provides advertisers the capability to create and update their ads in a flexible and timely manner.

Susan Wojcicki, Vice President of Product Management at Google, states, “We at Google are always on a lookout for ways and means to make Google AdWords as straightforward as possible and Google Gadget Ads is our latest attempt in this direction. Gadget ads provide advertisers a dynamically creative way to interact with their customers.”

Google Gadget Ads have been built using the same technology as Google Gadgets of iGoogle. Technically, Google Gadgets are simple XML files that are hosted on a public server. Their content is commonly made up of Standard HTML. JavaScript and CSS are also sometimes used. As the user has complete access to the API functions, therefore Google Gadgets can be used in any manner. In simple terms, gadgets are mini-webpages where images, videos, flash, etc. can be easily added. Google Gadget Ads differs from Google Gadgets in two ways viz .

• Unlike gadgets on iGoogle, Google Gadget Ads require some extra attribute and elements in XML file.
• Certain requirements have to be fulfilled for proper implementation of Google Gadget Ads.

Google Gadget Ads can be created using HTML, JavaScript or Flash. The online Google Gadget Ad Editor allows the advertiser to preview, modify and validate his ad in real time. Gadget ads are built on an open platform. Hence, they can be hosted anywhere. Google automatically acquires the copy of the gadget ad and thereafter supplies it to all the servers of Google Content Network.

To make sure that gadget ads reach the targeted users, lots of target options are provided. The ads can be targeted by geography, demography, category, site, etc. The users can even build active communities by sharing Google Gadget Ads with each other. Additionally, the Google Content Network disseminates the ads anywhere without charging any recurring hosting or serving fees.

The sharing and portability capabilities of gadget ads generate free traffic as well as increase interaction between users and advertisers. Gadget ads support both cost-per-click and cost-per-impression pricing models. No per-campaign charges are involved. Furthermore, HTML is usually used to create Google Gadget Ads. Hence, the development costs are drastically low.

Google Gadget Ad format is still in the extended beta stage of development. Therefore, only a few AdWords advertisers have the privilege to use it. “The feedback of the participants has been astounding. The advertisers see Google Gadget Ads as a breakthrough marketing solution that gives them power to interact with their customers through rich, vivacious and appealing contents,” reveals Susan Wojcicki.

“We are always in need of innovative ways to engage our customers,” says John Vail, Director of Interactive Marketing at Pepsi-Cola North America. “Google Gadget Ads have amicably fulfilled all our advertising needs. With them, we can reach the right kind of audience at the right time. In fact, they have imparted exuberance to our Sierra Mist campaign,” exclaims Vail.

What does a gadget ad look like? Below is a gadget ad that they’ve built to advertise the AdSense program.