The new collaboration, dubbed AOL Search Marketplace (SM), allows advertisers to locate their target audience more easily.
SM assesses the terms entered into the AOL search engine by each web user and then places appropriate commercial content on the website that person visits.
Mike Kelly, president of AOL Media, explained that "our advertising clients have told us they want the ability to target their search advertising".
SM, said Mr Kelly, ensures that that advertising is only seen by the individuals most likely to buy the product or service being offered.
It will, he claimed, "let marketers better coordinate their advertising, and build greater efficiencies into their campaigns".
Greg Sterling, of Sterling Market Intelligence, told the New York Times that "Google is doing something a bit uncharacteristic to accommodate a large partner" such as AOL.
Google's alliance with AOL is the latest in a series of associations between the search engine giant and other online companies.
Last August, Google became the exclusive text-based advertising provider for eBay and, two months later, acquired video website YouTube.
