Google has been testing product ads for some time now. As of last week they have turned on this featured called Ad Extenstions. By turning this feature on you will attract more eyeballs to your ads and in effect raise your click-through rate. Google stated on their blog post which announced this new feature that some advertisers have seen a 10% increase in their CTR.
Here is how to turn on AdWords Ad Extensions, it must be done for every campaign separately:
Go to Campaign –> Settings; under Networks, devices, and extensions; click on edit under Ad Extensions and check the box that says: Connect to my Google Merchant Center account. This should automatically bring up your Google Base (Product Search) account, once it finds it, just click Save.
UPDATE: The process has changed slightly, instead of finding this under the Campaign Settings tab, you will need to go to the “Ad Extensions” tab and select “Product Extensions.”