No, it's not good enough. It's a bizarre colour that is too similar to the white that they use to write 'Ad' in it. A website with white-on-yellow text would be painful to read.

Also, they don't even bother putting it next to each ad. On the right hand side, there's just one 'Ads' at the top and then everything underneath is an unlabelled paid ad. Why?

Google ads started out quite distinct, but they have gradually made them blend in. They used to have a stand-out background colour, then they had a very pale background, and now there is no obvious 'advert box' at all. Google know that many people are misled into clicking on the adverts, but they don't care because of the $$