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Another update: After speaking with Google, I have learned that this was old code (the ads on/off stuff, they have yet to address the admob stuff) and that they say they are not working on ads in the Dialer. 

Update: Ok, update to this ad stuff since everyone is freaking out about it. The Enable/disable ad code is old and has been in and out of the dialer for the last few versions. I saw a few ad-related sounding things in my travels and grabbed the part that contained the most english.

    <attr name="adSize" format="string" />
    <attr name="adUnitId" format="string" />

This though, is new to the dialer, it's admob code. 

Teardowns never have a 100% hit rate though. This is stuff that's in the dialer, not stuff that's 100% guaranteed to be activated. That's just how the teardown game goes.


LOL your worst fears are might be true: Google will could show Ads in the KitKat Dialer. 

You can turn them off, though.

    -<string name="enable_disable_advertisements">Advertisements</string>
    <string name="advertisements_enable">Advertisements enabled</string>
    <string name="advertisements_disable">Advertisements disabled</string>-
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Probably for the search for local businesses thing.
Do we have any idea what these will look like? 
Fear-mongering much?

Ads that I can disable, how will I ever sleep at night?
Are they going to display an AD when you search for something? Or is it going to be there when you launch the dialer? Ads based on search I'm ok with because the new dailer is pretty much another search box.

Still they need to be careful... Too many ads and people will start getting annoyed
Well, if I look for "pizza" in the KitKat Dealer, for instance, and it returns an ad of a pizza place recommended by people in my circles, I can't see why I would disable this feature. 
YouTube is already over the top.... More ads is making me rethink the whole system...
Well let's see, TV=Ads, Free Radio=Ads, Magazines/Newspaper=Ads, and on and on.
Free services with ad support have long been around.
I might actually pay to get rid of those ads.... Oh, wait, I paid 350€ for the phone 
+Leo Saraiva exactly! When ads are relevant, I'm all for it.
YouTube still hasn't figured this out yet though, so I wish I could turn those off.
+Max von Beust maybe Google will offer free, ad supported, phones in the future.  Then again, they are subsidizing the price of the nexus phone...
"I'll just give Steve a call, he'll want to know tha-(phone: MUTHAFUCKIN' TIDE, BITCH! DO YO LAUNDRY!)...dammit, I need to turn those off."
+Florian Müller Well YouTube is a free service. That's how it runs. If there's a competing ad-free video sharing service of YouTube's scale, then great. But I don't see that happening ever. Services need money to be provided to users. Either they charge upfront or stay free and monetize in other ways. Also the YouTube partner program benefits a lot of regular YouTubers, so it's a win-win for Google and dedicated content creators, while remaining a free service for end-users with ads which actually are useful many times. I've clicked on ads lots of times. That's said, they do get annoying sometimes, especially the long ads, but thankfully Google doesn't believe in forcing them on the user and allows them to be skipped. It's a small price of patience for such a huge, free convenience.
Here's what I guess Google's ultimate goal is:

 "Man I'm hungry, I want to order Pizza."

Pull out phone type pizza into the search thing.

"Oh look there's an ad with a Google Offer for Nunzio's Pizza for two free toppings!"

Click the ad to add the offer to my Google Wallet.  Click the number to Call Nunzio's.

"Hey I'd like a pizza with pepperoni and green peppers, and I have a Google offer I'll be using when I pay with Google Wallet."
+Jason Stewart sad part is, knowing Google, almost nothing they touch is that smooth an experience.
+Ananya Gupta nah I find a lot of Google's stuff really smooth. People just seem to notice the stuff that isn't a lot more, probably because Google is so ingrained in our lives.
This. I love android, but this is just overkill. Next, your lockscreens has ads. I dont want to live android but i soon may if they go mad and put ads all over it. Gmail and all others are ok, but i paid full unsubsidised (in india its 34,000 which is $615.) for the phone. I shiuld nit see thoae ads. Its like i bought the tv and it shows ads even in local feeds and before i can see feed from my cable box. This should see some strong opposition from google. As much as i remember, the dialler is still open source, i will remove the ads thing and recompile it for my nexus 4 or use 4.3 dialer. Bad looking but good. Why should i see adds if i pay for it? If it goes on, i will surely one day steal a nexus from somewhere so that the ads are worth being display. They also should get those apps open sourced one again.I might really get an adblock (i haven't used them so the debs can get their hats earned money).
I can imagine it to be useful combined with search. You searched for "Pizza", you open the dialer and it shows the nearest pizza services so you can 1click call them... or so
+Max von Beust Yeah, for the phone. Just like you paid $800 for your TV and $50/mo for cable to watch ads on that. Just like you paid $20k for the car to listen to ads on the radio in that. Just like you paid $1000 for that computer to see banner ads in that. 
+J.J. Valenzuela no idea... But last time having a YouTube party there was before each video a30 second spot; and always the same... This was really annoying... I'm ok with ad but not if it becomes annoying.... ( the whole thing happened in the browser not the app)
+Paul Rubin you might want to consider that I am not using any additional service when using a dailer. 
+Max von Beust which is probably why they have the ability to opt out.

My guess is if you want to use the find local businesses from your dailer feature (which is an additional service) you deal with ads. 

If not, you don't.
Why do people go mad when they hear the word ads.. You can clearly see how this will work, if you search for pizza in your dialer it only makes sense to see ad offers for pizza right cause that's what you were looking for right.. This isn't going to be ads in your contacts etc that would be going too far but come on it makes sense, the new dialer is basically Google Search so it's no real surprise.. It's all bout whether an ad is Intrusive or stops you doing what your doing like pop up ads but Google has implemented it's ads Into maps, Gmail, search really well and fit in with the whole ui that it doesn't really get in your way. The only ads that do annoy me are the YouTube ones lol 
You have linked the Android 1.6 source from 2007. The string was not added with KitKat. It has been there for five years.
I guess that was his point.
Yes, I misread +Zhuowei Zhang's post at first. Anyway what +Ron Amadeo writes here is a plain lie. It's sad that a "tech journalist" doesn't even trace back three lines in an open git repository.
Update: After speaking with Google, I have learned that this was old code (the ads on/off stuff, not the admob stuff) and that they are not working on ads in Dialer.

(I think I hit a nerve)
+Ron Amadeo The AdMob stuff is included in the new Google Play Services library (the part you include in APKs to talk to Google services), so that is probably where it came from. Just because it's in the Play Services library doesn't mean the code has to use it.

Anyways, if you want to check that out, get the Google Play Services library from the Android SDK manager, then check (your SDK folder)/extras/google/google_play_services/libproject/google-play-services_lib/res/values/ads_attrs.xml

edit: AdMob was integrated into Play Services 4.0, the version released at the same time as KitKat.
+Zhuowei Zhang I know. It says that in the AP update. Play Services has the ad SDK in it, so of course it would have admob stuff right? How does ad stuff being in Play Services (which 3rd party apps use to display ads) mean this is wrong?

"Just because it's in the Play Services library doesn't mean the code has to use it."

Yeah, that's how all teardowns work. It's just code, not intent to use the code. There's always the possibility that they're being sloppy or it's just a canceled feature. 
+Ron Amadeo I think, like Play Games in Google Glass, someone just pressed "Ship All" when building the APKs.

I would assume the dialer includes Play Services for maps capability, so of course ad capability, even if unused, would be included in the APK.
OK the obvious question, any one has a link to the apk :) 
sooooo then this entire post is pseudo-hypebeasting for your own investigative skills, actually reveals nothing, and should probably be removed?
This is what happens when you tear down an app and jump to conclusions based on unused strings in the resource files. Ron, now that you're writing for ars maybe it's time to leave some of the android police sensationalism back where it belongs. Cut and paste code often slips into production.
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