Google Ads Tracking Us To Target Us?

Ok I just heard this on Fox News. Apparently Google is tracking what we search to better place ads in front of you. I'm not talking about the ones they place on your blog, no they're the ones you just randomly find while your on a site. I was on myspace and I did notice most of those ads were very similar to what I would be interested in. Not sure if they were Google or not.

But, I don't see a problem with that. Why waste Ad space on a person if they would never click on it right??? So, I do understand Google's position. What some are finding as too little privacy, is the problem. But news flash aren't we only guaranteed privacy when and only when the little lock appears on our menu bar. Other than that who knows who's watching what we do. It's the price we pay for using the Internet. That's why everyone is told DO NOT GIVE OUT PERSONAL INFO. Right?

It's sort of like using that savings card at the grocery store. Based on what I buy, supposedly that's why I receive special offers. No wasted paper I think. Plus I do use most of the ones I receive.

Or like Tivo, based on what you record they suggest what you may like.

I've very interested to hear what others think of this new finding. Or just new to me finding.