Loren Baker reports that Yahoo is serving images alongside sponsored text links on its Yahoo Directory property, possibly a testing ground for future image-based ads on Yahoo's core search
page.
The images themselves (served by imageAdvantage) are not clickable and are seemingly not chosen by the advertisers themselves. Although there are no indications that Yahoo plans to test these ads on its contextual network, Baker notes that using images would violate the Web giant's own terms of service.