Google Operating System reports Picasa is the latest Google property to be monetized with Google AdWords ads. If you conduct searches for pictures in Picasa’s web albums, you will find the ads at the top of the image results. For example, a search on my iPhone shows ads for AT&T, Blackberry and ZapBangDone.com (an iPhone app seller).
Here is a picture:
We all know Google said they will be placing more ads in more places. So this is just the latest Google property to show ads.