Today, Google announced that it will be displaying some paid ads below search results (opposed to the side). I was not able to confirm, but still assume ads above search results may co-exist with those below search results. In this case, organic results will be “sandwiched” between paid results.
Ever wondered if your paid ads on Google perform better when they are at the top center, top side, or somewhere lower? Here’s a fantastic high-level introduction to understanding the importance of this type of analysis and what it can mean for your paid search optimization: