Ads with your Google news seems to be the newest addition to the Google Advertising. The ads will appear when you search on Google News provided you are from USA. The Google Ads are similar to what you get with Google Search or with Google Book Search.
The ads themselves are experiments based on different formats like overlay ads, embedded videos from partners. Publishers and advertisers will benefit from these experiments as usual.
I have a screen cap searching for Google Phone related news, for those people who are out side of USA and do not know how to uses a proxy! :)
Google News Blog: Ads in Google News search results