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it was showing ads related to web designing and web hosting [something I work on and have searched for in the recent past!]
It seems like the network would take some time to get a larger amount of user data to make the ads truely trageted based off of user behavior.
I checked the source of the page to see if they were dynamically changing based on any hidden content, but no.
So it must all be behind the scenes tuning.
I think Yahoo will definitely have an Adsense competitor based on the groupings of ads that show up together.
They are all very focused on something....keyword, behaviour, whatever.