Paid Local Pack Results?

Our friends over at Moz saw a new SERP feature pop up in their MozCast.

Notice the lovely paid ads dressed up as a local pack result? While this is a test, and nothing but a test, is it also a continued acknowledgement from Google that their current methods of dealing with Local search results suck? Or maybe it's an acknowledgement that local data sucks and Google isn't making enough money from local to throw serious resources into attempting to crack that nut.