Google is testing a new search ad format that lets you expand and collapse the sponsored search ads. When you expand the ads, it then shows a carousel of search ads. Google is also testing search refinements under search ads.
These tests were both spotted by Khushal Bherwani who posted the expandable and collapsible search product ads on X – here is a GIF of it in action:

Here is a static image of one of the sections expanded and the other closed:

Khushal also noticed Google adding search refinements within the search ads box, and posted that on X as well:

I am not sure why Google would hide ads, but I do understand the refinements. So I guess this is a way to trigger people to show more ads for more queries but it requires some action on part of the searcher to trigger these ads.
Forum discussion at X.
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