How many mainstream Google users fully know or understand how the search engine collects and pieces information together? Probably not many. To "simplify things", Google reduced its 60 privacy policies down to one. Google informed me through my work and personal emails. Catch is - I didn't realize they had my information. Very spooky! But come to think of it, I had probably gladly opted into a Google-owned service at some point. Or used a service (e.g., YouTube), that got purchased by Google. That's Google's game: collecting disparate pieces of personal data and stitching it together.
Here's what Google's new policy says and what it really means:
"...we want to ensure you can move across Gmail, Calendar, Search, YouTube, or whatever your life calls with ease"
i.e: We trace your footsteps from email, calendar, search to video. We then show you the ads based on themes you talk about in your personal space.
"...we suggest search queries or tailor search results, based on the interests you expressed in Google+, Gmail and YouTube."
i.e.: We connect what you like on google+, with what you frequently email about and what you watch on YouTube. We know you.
"...By remembering the contact information of the people you want to share with, we make it easy for you to shre in any Google product or service with minimal clicks..."
i.e.: We know your friends too