More valuable to who? In this case it seems like more relevant ads increases the value of Google Search to advertisers but not necessarily users.
If, as a user, I see ads that are more directly targeted at me, that is a negative value in a search engine. I never want targeted ads. I only want to see what I searched for.
That said, for the small minority of users like me, Google may never be able to overcome their “advertising company” label. And that label is an instant black list.
