MediaPost has learnt that Google is beta testing "Gadget Ads" which will appear inside Google Gadgets or widgets that we normally see on blog pages and iGoogle (Google Personalized hompeage)

Though Google is expected to roll the Gadget Ads in summer, they have been randomly testing these Gadget Ads since March. The first batch of Google Gadget Ads had YouTube clips of GMail promos inside Google Gadgets - a live preview of which is embedded here:

Advertisers can buy advertising space on Google Gadget ads using the existing Adwords system. And like Adsense ads, Gadget ads will follow both the pricing models - CPC and CPM.

While Google is yet to release more details about the upcoming Gadget Ads, they could deliver these Gadget Ads even using the existing Adsense code without even asking publishers to add extra Gadget-specific code in their websites.

Since Google Gadget Ads give publishers a chance to monetize content, we are likely to see more and more websites embedding Google widgets with the purpose of making money. And that also helps Google penetrate better in the already crowded market of HTML widgets.