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Fewer ads mean more value

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Google CEO Eric Schmidt believes that showing fewer ads does not necessarily lead to less revenue.

In an interview with CNBC’s Maria Bartiromo, Schmidt said," If we show fewer ads that are more targeted, those ads are worth more. So we’re in this strange situation where we show a smaller number of ads and we make more money because we show better ads. And that’s the secret of Google."

When questioned about display ads Schmidt said," Well, it’s fair to say that that Google is not the leader in display ads, but our customers want to be able to purchase text ads and display ads and other advertising in one purchasing bundle." He also said that he believes Google’s technology is better.

Schmidt complimented Yahoo for its new forms of advertising saying its "much more participative, much more creative, much more–much more interesting in and of themselves."

As for Google, Schmidt said the ads are valuable not only to advertisers but consumers as well. He emphasized the importance of targeted ads, "When they’re targeted. When they’re the right ad for what you’re doing or what you care about," people will want to look at them.

 

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