I recently became aware of this when my SERP for "Novi Computer Repair" for Jona Tech jumped to the top of the results page. I was excited after tweaking my pages for SEO and thought I had jumped over my local competition. I got curious and logged off my iGoogle account and tried the same search - "What the .....?" was my reaction. I went to the 3rd page now!!
I did some research and posted on forums to see what was going on. Apparently, Google made a change (a quiet change) early in December of 2009 to optimize search results based on the searcher's search and click history. I guess after constant mods, re-uploading, and searches on Google for "Novi Computer Repair", Google optimized the results just for ME.
What does this mean to SEO's? My opinion is not a whole lot or it shouldn't. I would keep doing whatever works for our clients. The reason if you think about. Lets say a potential customer needs a computer repair business in Novi. Unless they have a chronic computer breaking problem, this would be the 1st time they perform this search and they would not have a prior Google history on this. This means to me that the search is still somewhat organic and non biased.
One more point - Google does allow you to turn off or suspend personalized search results.
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