With 2/3 of the search market Google certainly has acquired enough user data to understand trends, patterns and the like and it appears now that Google is using that data to focus ads based on queries. This story by Saul Hansell of The New York Times describes some interesting findings in Google search results as of late.
Apparently Google is using visitor search queries to push relevant ads. The example given in the story is a visitor who might search for diving and then do another search for vacation would be shown ads for diving trips. So what’s different than the diving company who has ads displaying via Adwords? This shows that Google is displaying ads based on behaviour not what keywords were purchased. Now that is focused.
Of course privacy concerns abound and we’ve yet to see how that will play out but if that issue can be safely bedded advertising will take a step forward.