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...as to how it plans to accomplish that.

Google establishes cookies for every user that performs a search and thus is able to keep a record of all the queries put in by the user. But, Google isn't going to take into account the queries that you might have run 2 to 3 days ago, instead, it will go through a long list of searches that you've made in a shorter period of time, such as 5 minutes or so and based on that data, it will deliver search advertisements the next time you enter a query. However, it does not follow Behavioral Targeting, as done by Yahoo!, AOL and others, where targeted advertisements are displayed on the basis of the user behavioral data collected for a number of days.

According of Nick Fox of Google, We are trying to understand what the user is trying to do right now. In some cases, those queries are ambiguous, so you need a little more context.

It is probably not just the previous query that matters. You want to know if the user is still doing the same thing. You wouldn't want to go back a month. You wouldn't want to go back a day. But you may want to go back two or three queries.

Google has been quite honest about its practice of placing cookies in the browsers of every user that uses Google and thus keep a record of the queries searched and some other information as well, that should certainly help it in delivering targeted advertisements to the users.

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