I am sure everyone has noticed the big blue bar across the top of whatever Google product they might be logged into today...
Regardless of all your other settings, I find this one in particular to be important to look at. It has to do with sharing across Google's products of your preferences that show up in ads that other users might see.
There is a link in the new TOS, but it might not stand out enough, so I am providing it here too so you can go directly there, if this is a particular interest of yours.
There is a check box at the bottom. For me it was defaulted to Opt Out but that might be due to the fact that I already have my +1 info opted for off in my Google account settings. Deal is, if you want to share your preferences for particular items to the public or "friends" via ads, you check the box and then click save. If you DON'T want to, then leave the box empty and hit save.
I have to say, I love how Google approached the changes page, explaining things in plain English rather than a bunch of confusing legalese.
Official Blog*Star/Blogger TC