Just thought I would bring this issue up again -- it has been a couple of months since I first mentioned the subject.
As I have indicated before I am a consumer of Google context based advertising both as an advertiser for my Courses by Wire elearning business and as a publisher showing ads at my Meeting by Wire NetMeeting information website. I realize that this form of advertising may not work for all advertisers or publishers but in my case it is a perfect fit.
At Courses by Wire we (after advertising for 9 months) have just secured our first contract that we can directly determine reached us through advertising via Google Adwords-- it is a substantial contract and more then justifies the cost of the advertising to date. We also have had several more contacts that we expect will turn into contracts(maybe smaller than this one but very much worth it just the same). There is no other way that a business of our size could afford to advertise and reach such a rich targeted set of potential clients, turn them into prospects that will talk to us about business(and actually secure the business).
At my Meeting by Wire site the revenue from Google Adsense ads has more than 20 times what was possible using traditional web banners and popups, is much less intrusive for my readers and actually provides a site enhancement in my mind.
I realize this is a pretty small sample and the evidence I mention is anecdotal but I believe that Google style contextual ads are the future of advertising on the net.