Banner ads on Google? Not quite, but Google is now offering the option for adwords advertisers to use image ads (banners) in addition to the traditional Google text ads. An interesting move towards becoming more of a full service ad network. They say they still won't show image ads/banners/etc on Google, just on their Adsense publishers and partner sites -- for now anyway...they leave the door open just a bit with the words, "At this time, we won't show image ads on Google." It's in beta testing now, so if you're an advertiser with Adwords or a publisher with Adsense, you might want to give it a shot.
Here's a link to more info from the Adwords FAQ
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