“We’re going to have to find other ways to monetize the business,” Mr. Reyes told attendees of a Merrill Lynch investor conference… Mr. Reyes said the new products Google has been introducing at a furious pace recently will produce “meaningful” revenue contributions in the future. The mobile and local arenas, in particular, offer “a lot of opportunity,” he said.
Google will continue to invest heavily in the quality of its search engine and new products, he added, and this will continue to drive a “virtuous circle” whereby product strength causes rising traffic, which attracts more advertisers and generates higher revenue.
“There’s been a huge acceleration in the level of innovation in the company,” he said. “It’s all about risk taking.”
Ads from businesses that serve local markets and typically advertise in yellow pages are also an important market, and the company is looking for ways to tap it, including with tests of so-called click-to-call telephone ads.
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