At approximately 1:40pm Pacific Time today, we encountered an issue that prevented ads from being shown on Google.com and Search Partner sites. Our engineering team has diagnosed the issue and is working hard to restore service. As of now, most of the service has been restored.
We apologize for any inconvenience this may cause, and will update you with more details as soon as we've fully resolved the issue.
Posted by Miles Johnson, Inside AdWords crew
UPDATE 4:41pm PDT: We have fully resolved this issue. Again, we apologize for any inconvenience this may have caused. Our engineers are working to ensure that this type of issue doesn't occur again.