Our salesforce will sell cost-per-impression (CPM) ads directly to the largest advertisers, while the rest of your inventory will be filled with contextually targeted cost-per-click (CPC) and CPM ads.

Thing that publisher needs to understand is that the AdSense insertion into feeds is done through Feedburner.com. So, for those who are not using Feedburner yet better off to register their feeds now.

I have been a long time publisher of Feedburner Ads Networks (FAN). It’s worked great before Feedburner acquired by Google after which advertisers slow down quite dramatically. May be the FAN sales team relaxed too much. With this announcement, we can expect another hope to accrue revenue from feeds.

If you have already integrated your feed into feedburner the next step is migrating it into google account:

Migrating to a Google Account in order to use AdSense for feeds
Google will soon provide a self-service process to migrate from an account on the original FeedBurner website to a Google Account. We have temporarily paused processing of new manual migration requests; we are working doggedly through the initial queue of requests and will re-open account migration services as soon as the first batch is completed.

(If you have already submitted a migration request, please look for an email response from Google once your migration has completed).

[Update 1 September 2008] Today, when I wanted to login to feedburner.com, it’s redirected to google.com. And also the revenue from feeds has begun. The report can be seen in the AdSense account below AdSense for Content and AdSense for Search.