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.
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.