Taking the Google AdWords model to print publications is what we all expected when we heard Google Experiments with Brokering Print Ads. It looks like it is here. I found this at a post at our forum named Your ads in print at the price you set, which has a link to http://services.google.com/marketing/links/aw-print-pub-ads/.
As you may know, as part of Google's ongoing effort to develop new opportunities for our advertisers, we've been running tests of ads in a limited number of print publications. Now, we're excited to test an auction of ad space in select magazines.
In this test, the control is in your hands: you choose the ad size, set your price, and decide how you'd like to use the space. There's no risk to you – you pay only if you win the auction.
Offline print ads, meet Google.
Forum discussion at Search Engine Roundtable Forums.
Update, other forums talking about it now: