Search advertising has come to Google News. Type in a query and you'll see sponsored links running along the right side just like you do in "regular" Google.
Here's a search for coffee on Google News:
Google began testing ads on a variety of its web properties last November. The testing of ads then in Google News was for "search refinements." In other words, if you searched for a term on the main Google site and then clicked "News," that's a search refinement.