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March 2, 2006 2:32 PM PST

Live: Google faces off with analysts

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11:38 Kordestani says ad revenue grew 113 percent on Google sites and 73 percent on partner sites in 2005 from 2004. A chart details this.

11:37 CFO Reyes comes back onstage to introduce Kordestani, vice president of sales.

11:33 An analyst mentions the notion of Google as an agent (for ad sales on other sites) versus principal (ads on Google sites). Huber: There is a Google network business, and then there's a business in which we work with partners. Both are important. Yes, Google-controlled networks will have better margins, but a combination of the two is important.

"Spam is at an all-time low in the Google index and probably at an industry low."
--Marissa Mayer, product management, Google

11:30 Question: Orkut has traction in Brazil. What's the hiccup in other parts of the world? Eustace: We hired the creator of Python but also use other programming languages. Mayer: Brazilians are just very community-oriented. We're looking at other geographies.

11:27 Question about growth in different product areas. Rosenberg: There's an enormous opportunity in click-through rate improvements. Traffic is basically traffic. As long as Google gains market share, traffic will improve. The most important thing is that Google's user experience continues to improve, and the company is targeting geographies with high growth rates. If the search experience is good, queries per user will increase, which will drive advertisers.

11:25 Analyst question: How does research feed into product development? Eustace: I spent 15 years at DEC, Compaq Computer and finally Hewlett-Packard. Google hires the smartest people into the entire organization, not just in research. Also, there is a research group looking at longer-term things like machine translation.

11:23 Q&A from analysts in audience: How much can Google increase click-through rates? Huber: Google's click-through rates are higher than the competition's. A potential growth area is with local search.

11:21 Mayer: Google Base is derived from "database." It's attracted sequence genomes, to clinical trials, to products. Plan to allow people who upload stuff to be able to sell it to people who have a Google account.

11:19 Huber: Google's doing an effective job in dealing with click fraud. The effect on advertisers and business is "small." The company has advanced tools to deal with it. The goal is to recognize invalid clicks before they're monetized. Google does issue credits when an advertiser complains about click fraud.

11:16 Mayer: Google tries not to get too focused on external competition, but it's improved search quality with a bigger index and algorithm analysis to reduce index spam. "Spam is at an all-time low in the Google index and probably at an industry low." When you look at what Microsoft is doing, it's clear that search is a focus and a start on their ad network. The fact that AOL chose to go with Google rather than Microsoft (as a search partner) indicates that AOL thinks Google is better.

11:10 Huber: Multiple dimensions to monetization. One is better end-user quality, from better algorithms. The second area is around user interface. Google has made subtle improvements. The third area is better advertiser effectiveness. Example: AdWords Power Editor. The fourth area is more inventory. The fifth area is geographic expansion. The sixth area is general flow of advertising dollars to the Internet as a medium. Online offers greater efficiency and measurability or accountability. People are spending about 13 percent of their time on the Internet, but only 6 percent of ad dollars are being spent on the Net.

11:09 Eustace: The company has huge leverage over its revenue stream. It's hard for other big companies to increase revenue in any one day without increasing costs.

11:07 Huber talks about investments. AdSense for content seemed like a leap initially but has been successful. Google Earth monetization logic was in question initially. The combination of Google Local contributions and distribution of downloads of Google Earth has made it a success.

11:04 Mayer talks about staffing needs on different products. The company identified a need for maps and so it made an acquisition. It rolled out Google Transit in Portland, Ore. Google Ride Finder looked at GPS signals coming from taxis. It turned out to be not so useful. People can't get to the street in time to hail the cab.

11:02 Eustace: Google has built one of the largest computational infrastructures in the world. "The reason that's important is because we are incredibly cheap." Competitors can not deploy infrastructure faster, cheaper or at scale. This gives Google a two-, three- or five-year lead over competitors.

11:00 Lee: China has 110 million Internet users, and that's growing. Recently, Google has more than tripled its Chinese index size. User experience there is not as good as in the U.S. There are also four times as many computer scientists graduating from Chinese universities as there are from U.S. colleges. The quality is high as well. Users love Google. (Lee's speeches to university students there have been extrememly popular. There's even been some scalping of tickets.)

See more CNET content tagged:
Sergey Brin, Eric Schmidt, Google Inc., co-founder, vice president

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No Time for Love!
by March 2, 2006 4:59 PM PST
http://noluv4google.com
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Good job of painting a big picture
by Believe Brain March 2, 2006 6:22 PM PST
Stock dropped $40 two days ago by the CFO?s remark: ?? growth will slow ..?
Stock jump $18 within hours by the CEO?s dream: ?? $100 billion company ??

What next? Up to $450+ or down to $300-?
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by 207495111267145837975635436522 March 3, 2006 6:21 AM PST
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Anoox Sucks
by Charleston Charge March 3, 2006 8:02 AM PST
The relevency of the search results are horrible at best. Do the majority of people care if this company promises not to enter other areas of business? No. Most people want a search engine that is fast and relevent. Annox provides neither. Am I a Google shareholder or webmaster. No. Do I think everything Google does is the greatest. No. But I do think they provide the best search engine around.
I am just saying it as I see it.
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I agree, Anoox is a real alternative now for the people
by free_people March 3, 2006 10:24 AM PST
Anoox is with its community based business model of not caring about
profits or share prices is going to make life hell for Google & Yahoo's of the world
on the business front. I mean if you can get advertising on Anoox for 90% less
than Google or Yahoo because Anoox does not care about profits/share prices,
then why buy Advertising on Yahoo or Google!

But what I think is even more interesting about Anoox is its Open &
De-centralized model. This open model, in contrast to the closed & centralized
model of Yaoo & Google, is going to really turn the search engine business
upside down as we know it. I mean why should someone in France or Spain,
etc. etc. have their search results delivered by 2 giant media companies in
Silicon Valley! This smacks of real evil: evil of controlling what people worldwide
see/know by 2 companies.
That is why I urge all to back search engine models like anoox which De-centralize
the control of the search engine. Nothing can be worst and more evil than 2 giant
media companies in Silicon Valley controlling all people see/know world wide.

Does anyone know of any other Open & De-centralized search engine?
If you do, please let us know.
Odd
by someguy389 March 3, 2006 11:18 AM PST
Isn't it funny how all the individuals who comment on how AnooX is going to bring down Google seem to be small business owners? It's also amusing how they all give the exact same reasons, phrased in almost the exact same way, with strikingly similar grammar and sentence construction. Now that I think of it, I think Cyrus even placed the exact same plea at the bottom of his last silly rant.

A conspiracy perhaps? Or maybe I'm just paranoid.
View all 2 replies
Message has been deleted.
by caudio_roma March 3, 2006 7:01 PM PST
Cute, Cyril.....
by Earl Benser March 5, 2006 11:01 AM PST
.... now you're wearing a skirt?????


Anoox still is the dog of the search engine world.

And you're not the messenger, you're the incompetent salesperson.
Anoox is absolute crap
by Jamie314 March 7, 2006 4:15 PM PST
Frankly, I don't give a **** whether or not a search engine vows never to enter another business. Face it, if there's money to be made and it makes business sense then a promise like that is quickly broken.

3- Anoox search results are in many ways better. Because they are machine generated and then Optimized by the majority Vote of the people.

Right, comparison time:

My Cold Heat Soldering Iron needs a new tip, and I want to find out: where to buy, how much it's going to cost, and what shape tips are available. I'm going to use 'cold heat soldering tips' as my search terms, and I'm in a hurry so I want to know quickly, without trawling through anymore search pages than the first.

Search 1, Google:

*Results 1 - 10 of about 559,000 for cold heat soldering tips (0.23 seconds)*
The very first entry is ThinkGeek, who are selling three tip shapes (conical, bevel, chisel) for $9.99 each. By chance, I've bought with ThinkGeek before and I'll probably end up back there for my tips.

Search 2, AnooX:

*Result 1 to 15 of about 814 for 'cold heat soldering tips' | (Returned in 25.310 seconds)*
Now, after a long wait (I seriously thought my wireless connection had dropped) I am presented with a list of items -totally unrelated- to soldering. The first result? "Madden 2006 tips, hints, strategies, cheats, codes and more." The remaining results fall down to things like, 'Organic Gardening Tips', 'Men's Dating Tips', and portable heaters. Totally useless.

Now, I know this is by no means a scientific test of the search engine (it is a real life example), but waiting 25s for a page of irrelevant results when I get better results faster with Google means I'm not switching anytime soon. I doubt anyone else will either.

Note: I don't have Google stock, I do not make money from Google Ads. If you're worried about your business going down the pan, get your finger out and keep an eye on local competitors... they're the threat, not Google.
Google vs All Others by Elias KAI / Google's Father
by seochina March 4, 2006 4:17 AM PST
Well, think Twice.

which search engine already get to every single Mind _? it is a psychometric marketing value.
Answer GOOGLE.

Even if we do believe that other technology or business models are much more successfull, Relevant or whatever, I believe it is too late.

You may be right, some are more intelligent ( ask Google Altavista Ask Yahoo MSN Accoona Anoox all of them this question : what is the opposite of NEXT _? no search engine is able today to give you a right answer )

My comment just relefects to the fact that google is behind in offering all new services just and just to keep is Based customer value Gmail Adwords Blogger , google print ads, Books, google Ads Videos Google Talk google Page Creator )
I am holding on my small project that can be connected to Google and allow anyone to Drive for FREE.

New product can be developped as well egarding what Google is aiming to attract.
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