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I saw this story a couple places yesterday, and it seems like a pretty cool idea. User controlled ads make a site experience more personalized…something I am certain we will see big G movin’ to more and more in the near future. Localization is already gettin’ hyped all over the place…specialization (video search, news, image search, job searches, etc.) are quite prevelant….personalization is the next big thing in search which hasn’t been highly yapped about yet…my guess is that it’s been kept fairly low-key since it tends to attract tinfoil hat wearing nutballs that scream about privacy invasion (which it certainly can be). I think G is startin’ to get some tough skin about bad press though, and will most likely bite the bullet and start rollin’ out all their big-brother-esque personalized search technology. Here is the first shot at personalized search, in case your worried about being on the first on your block to give up all of your personal information. Site flavored search seems to be a move in the personalized search direction as well. Now you know why all the best SEO’s are studyin’ social network theory right now. I imagine Orkut was quite a big help as well (the founder is a cool guy too.).
As with any new techology, there will be problems with this one. I’m sure those who are quite inventive can already figure out how to use certain content to display the ads they want. I wonder if the click frauders will be able to automate this to choose the ads with the highest CPC.