I think that is correct.
I have only gotten those prompts when I am searching and not finding what I want. I keep changing the terms or I start a new search with keywords garnered from a previous search and quick review of the front page results.
I do tend to use Ixquick and Start Page for most searches. I really don’t see much difference in the results. I read that Ixquick is following EU rules on privacy, so I think we can trust their statement that they don’t record IPs.
I gather that if you do not have Gmail open when searching Google, then you don’t get the keywords thrown back at you via ads. Is this true? I don’t use Gmail. My ISP provides a web mail and I use Eudora at home and the web mail when on other computers or traveling.
However: the history on any computer is open to authorities. They do know which sites you regularly read.
I assume that if you are not logged in to your gmail as you search, that they can’t track your activity and link it to your gmail in the form of ads. I’ve had no advertisements come into my Droid phone despite my many searches. They DO know my IP though, as I do google searches and I’m sitting there looking at ads from Corpus Christi. I did a search on a book, and later on I saw google ads like an hour later for Amazon featuring the book I searched. A bit interesting.
This is all guessing though, I don’t know how Google does their thing, and I haven’t read their new privacy policy.