Tells Analysts Aim of San Francisco Wireless Plan Is Not to Generate Revenue

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NEW YORK ( -- Google really and truly develops products first and worries about how to make money from them later, Jonathan Rosenberg, Google’s VP-product management, told a packed ballroom of analysts at UBS Annual Global Media Conference at the Grand Hyatt, New York.

Jonathan Rosenberg
Our philosophy is “no constraints,” Mr. Rosenberg said during his luncheon address today. “We build the right user experience first, and monetize later.”

$3.68 billion
Google’s 2005 U.S. paid-search revenue will reach nearly $3.68 billion in 2005, according to online market research firm eMarketer. Google will take in nearly 29% of all online advertising spending in 2005 as well.

Although questions about a possible deal with AOL were asked of him, Mr. Rosenberg refused to address media reports about a possible ad-sharing deal.

His presentation was mostly a basic primer about how the Google auction-based, pay-per-click ad model works, but did hit on a few projects that are sure to create fear and awe in marketers already trembling over Google bringing its ad model offline.

Pursuing cost-per-call ventures
In what is sure to be a threat to the direct-marketing community, Mr. Rosenberg said the company is interested in pursuing cost-per-call ventures, presumably like the cost-per-call ad the U.K. company Callgen placed on Google in September. He said he believes cost-per-call will become more commonplace online. It appeals to the search behemoth because “we are interested in every ad model that we can track back to results.”

Google's cost-per-call search advertising service, which it started recently testing in the U.S., lets Web users contact search advertisers by phone for free from the Web using voice over Internet protocol that some say is more efficient tracking model than pay-per-click.

He said Google does not yet have a plan to generate revenue if it is allowed to proceed with its proposed plan to set up wireless service for the city of San Francisco. “Our interest is not so much ownership of distribution as it is giving people access to the world’s information.”

Google Books
He also defended another controversial venture, Google Books, saying that the criticism (and subsequent lawsuit) leveled against Google for alleged copyright violation by copying books is unfounded. “It’s a book-finding, not a book-viewing product.”

In a question following the presentation regarding possible partnership's with cable companies to devise an application for Google Earth, a global mapping service, Mr. Rosenberg said he saw the service as having video-on-demand possibilities and seemed ready to welcome cable partnerships.

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