Earlier this week, we reported many people seeing Google test showing the display URL in the AdWords title. Well, now it is official, Google announced it saying:
Starting today, we'll automatically show your display URL domain in the headline for select top placement ads on Google. As a result, your brand will be featured more prominently in your ad, and you can use the text in the headline to highlight other information. Potential customers, on the other hand, will be able to more easily identify the site to which they’ll be taken after they click on your ad.
Here is a picture of the display URL showing at the end of the title of the AdWords ad:

Personally, I am not sure what to think. I think for brand related searches, it is a good thing. But maybe for searches that are more generic, like [flowers] it should not show up.
This has been pushed out globally, so everyone should see it for those top placed ads.
Google added:
When shown in the headline, the display URL will be separated from the rest of the text by a vertical bar and will include only the domain, not the "www." prefix or any subdirectories. Your display URL will also continue to appear as normal below the description line. Of course, if the headline already contains your domain, we won't display it again. Finally, it's possible for the display URL domain to appear in addition to a description line that is promoted to the headline, as long as the resulting headline is sixty-eight characters or less.
Forum discussion continued at WebmasterWorld.

Comments:
James Carswell
05/18/2011 01:00 pm
I'm not seeing this exactly in the UK on google.com or google.co.uk. For a search on 'flowers' the second ad is showing the display URL but not the first. I think this is because the 1st description line for the top ad has been promoted into the headline and adding the display URL would exceed the 68 character limit.
Allan Kuenn
05/18/2011 04:12 pm
It's a cool feature and similar another technique Google is using where they roll the first description line to the headline if it is short enough and you use punctuation. The tough part will be measuring how effect it is.
online coupons
05/19/2011 09:30 am
Well that is a good feature added by Google. It must be appreciated.
Craig Desmarais
05/20/2011 03:28 pm
I think this is going to be an awesome game changer for PPC because it will give the searcher an idea what they will be getting into before they click. I think it will cause everyone in SEM to step up their game as far as landing page quality because people will be able to preview where the ad will lead them and if it is not attractive or showing something that is valuable to them they will avoid clicking on the ad. Additionally, in theory I think it would help reduce CPL due to the fact that users can view the page before clicking on it, if it is not what they are looking for they will not click it in turn reducing CTR and your budget spend slightly. However, it will also increase the quality of leads you will generate with your ads. There is so much that is possible with this new feature I could write a post about it, and I believe I will. I am excited to see how this plays out and how we as search engine marketers can use the data we compile from it to further optimize our PPC efforts. Keep it comin'!