Google began rolling out a new design for its image search today, and along with that came a new ad format. The format is called (appropriately) Image Search Ads.
"These ads appear only on Google Images, and they let you include a thumbnail image alongside your lines of text," explains Google Images Product Manager Nate Smith. "we hope they’re a useful way to reach folks who are specifically looking for images."
Advertisers can review specific performance metrics for their ads on Google Images. They are priced the same as standard AdWords ads with cost-per-click pricing.
Advertisers can create the ads using Google's Display Ad Builder. They can use a template to pair relevant ad text with targeted images.
To create an Image Search Ad, simply go to your AdWords account, select the campaign or ad group where you want to create it, click the Ads tab, select Display ad builder from the "new ad" drop-down menu, then select "templates for search" and choose Image Search Ad.
Google recommends that advertisers create a new ad group so that they can target keywords, adjust bids, and track performance for ads specifically on Google Images.