Starting today, Google search on the iPhone and T-Mobile G1 will no longer be ad-free. Both phones offer the "real Internet" and now it's about to get more real as you'll start seeing sponsored ads in your searches. Advertisers can also target mobile users. Google is the default search engine on mobile Safari, a move that stands to offer them a substantial competitive advantage when targetting iPhone users. According to Alexandra Kenin, product marketing manager for Google's mobile ad team, "iPhones and other mobile devices with full Internet browsers" option in AdWords, advertisers also can exclude this class of devices from their ad campaigns."

via CNET