Facebook has ads that people like your mother will think are from friends. If users can't tell the different between Google Ads and search terms (or between CBS and a random site), they're unlikely to distinguish between newsfeed updates from friends and paid ads.
You're right that that's totally different from intent. But it's valuable for brands which spend billions [1] per year on exposure-focused ads, like product placement.
If users can't tell the different between Google Ads and search terms (or between CBS and a random site), they're unlikely to distinguish between newsfeed updates from friends and paid ads
That's a big assumption to make. The bar is low for search results because they have no personality.
For friends -- we know our friends. They have a distinct personality. Ads disguised as messages from friends could have a negative effect because of this dissonance.
Typically when someone "likes" a product or service, that shows up as the ad. For example, my father "liked" Carnival cruises, this makes sense as he's been searching for a cruise lately. The ad showed his picture next to a Carnival ad. It looks very authentic if you're not paying close attention.
Can you link to some screenshots with examples of ads in the newsfeed that someone like my mother would confuse as being from a friend or family member?
I'm inclined to agree with davvid on his point about how personality isn't a distinguishing factor between Google Ads and Google Search Results.
On top of that, intent is was drives the conversion. Even if my mom were to inadvertently click on an ad in her newsfeed thinking it was from a family member, the content of the page she was redirected to would definitely let her know she had made a mistake and that the status update definitely wasn't from a friend or family member.
You're right that that's totally different from intent. But it's valuable for brands which spend billions [1] per year on exposure-focused ads, like product placement.
[1] http://adage.com/article/madisonvine-news/product-placement-...