Advertisers no longer have to show ASCII URLs in their ads.
A couple weeks ago I missed an announcement from Google AdWords that it now supports internationalized domain names (IDN) for display and destination URLs on Google ads.
This means advertisers will no longer have to show a non-ASCII ad followed by an ASCII domain name.
AdWords clients can enter unicode characters for the URLs and Google will verify that it works correctly in both unicode and punycode.
The display URL will only show up only in cases where the language matches that of the user’s Google interface, otherwise it will render in punycode.
(Hat tip: Patrick C)