Well, they are using all sorts of stuff to keep it relevant, for example, some just posted this at my forum :
Demographic bidding now available on selected sites in the Google content network
You can bid more for preferred demographic groups or exclude users of a certain age or gender from seeing your ads.
Stuff like this is bound to help make Adsense more powerful and extend its lead over potential rival like YPN which is even yet to roll out beyond US.
I do give a lot of credit to Google but at the sometime, I am concerned they will ultimately abuse their dominant position which is extending beyond the web int TV etc
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