Google CEO Eric Schmidt gave an interview to German F.A.Z. Here is the snippet of the interview.
FAZ: Search marketing works very well. But where is the growth potential for Google? Mobile Internet, video, web 2.0?
Eric Schmidt: First: There is still a lot of revenue in search – as we get the technology better or as we can do more targeted ads. There is no limit for search marketing. People assume that there is a limit, but we have many more ideas about technology. Second: The most obvious large space of advertising is the mobile internet. Every German has a mobile phone. Just take the success of the iPhone: It has the first really powerful web browser on a mobile device – and many more are still coming. Nokia has one coming, Blackberry has one and Motorola has one. They are all supposed to be released this year. By these products, the advertising gets more targeted because phones are personal. So targeted ads are possible. And that means the value of the ads will grow. The next big wave in advertising is the mobile internet.
FAZ: What about video and display advertising?
Eric Schmidt: A lot of opportunities are in video and display. But there are things where you can do ads on, but some things you can’t. Sometimes it works, sometimes it doesn’t. Mobile works all the time.
FAZ: Can mobile business be larger than the PC-Web?
Eric Schmidt: Yes, mobile will be a larger business than the PC-Web. But it will take a few years.
FAZ: Sergey Brin mentioned in an interview earlier this year that the Google revenue with MySpace was not as high as expected. Are you disappointed about advertising in Web 2.0 networks? Is Web 2.0 advertising overestimated?
Eric Schmidt: MySpace did not monetize as well as we thought. We have a lot of traffic, a lot of page views, but it is harder than we thought to get our ad network to work with social networks. When you are in social network, it is not likely that you´ll buy a washing machine. It is not a long term problem but it is taking us longer than we thought. We are trying new ways, new approaches all the time.