http://www.google.com/relatedlinks/

We have added an example here: AuthorityDomains.com Google Related Links

Google recently launched a new program of “related” links, where you add a javascript code to your site, and they will serve a list of relevant links to other websites.

When webmasters set the links up, they can select whether they want to display related searches, related web pages, or related news stories.

What is the source of this data?

Google doesn’t mention how they compile this information. From a brief look, it loos like they use their standard contextual algorithms to find other related sites and queries. The related sites seem to come from people paying for Google Adwords, although it is tough to confirm as they have to decide what the keywords are (which may not be on the page).

So basically, based on the page where the code is, Google determines a few keyowrds that are relevant, then searches for related sites and related queries.

Is it beneficial to add this code to your site?

We don’t see any real benefit in adding this code, as all it’ll do is give people many ways OUT of your site.

One way in which it is useful, is to see how Google categorizes your site, what kind of keywords it believes your site is about in order to present these as relevant.

Other than that, all it’s doing is giving Google free advertising.