Google has begun testing a simplified text ad unit for local businesses. The ads will appear in new areas of Google's search results pages, prompting some advertisers to express concerns over competition for clicks with their AdWords ads.

The new Local Listing Ads appear at the top of a search results page when users conduct a geographic search for a category related to an advertiser's business.

Unlike AdWords ads, the ads will not include a headline or creative. They will simply show the company name, contact details, and a link. Also unlike AdWords, the Local Listing Ads will not be sold based on pay-per-click bidding via auction. The ads will instead be sold for a flat monthly fee, based on the company's location and business category.

Google spokesperson Deanna Yick declined to say how much the ads will cost, since Google will be testing prices for each location and category to find the best balance between cost and return for the advertiser.

Local Listing Ads are currently available only in San Francisco and San Diego, CA, but are expected to expand to more cities across the U.S. after the initial testing period.