A WebmasterWorld thread discusses a video demonstration of someone going from a search in Google, clicking on an paid ad and then being taken to a Google AdSense page with just ads with similar ads for the same keyword. The video goes through similar examples of how advertisers are not complying with Google AdWords Landing Page and Site Quality Guidelines. Here is that video...
Now, this has been an issue for a long time. You click from a Google ad to a Google ad to a Google ad and so on.
At SES San Jose this year, we were in a car service to the Google Dance and my wife was with me and a bunch of SEMs. The SEMs were discussing this topic. I said, well, let's ask a normal searcher, aka, my wife, if she ever noticed clicking on an ad, to just be taken to an other ad. What did she respond? What is an ad?
So how serious is this issue? Well, it is serious for numerous reasons. I believe Google wants to do something about this but many SEMs disagree with me on this.
Forum discussion at WebmasterWorld.