The Football Association Premier League Limited et al v. Youtube, Inc. et al
Filing
166
DECLARATION of Elizabeth Anne Figueira in supoport of Class Plaintiffs' Statement of Uncontroverted Material Facts in support of Their Motion For Partial Summary Judgment in Support re: 158 MOTION for Partial Summary Judgment dismissing with prejudice Defendants' First Defense asserted in Defendants' Answer to the Second Amended Class Action Complaint... Document filed by The Music Force LLC, Cal IV Entertainment, LLC, Cherry Lane Music Publishing Company, Inc., The Football Association Premier League Limited, Robert Tur, National Music Publishers' Association, The Rodgers & Hammerstein Organization, Edward B. Marks Music Company, Freddy Bienstock Music Company, Alley Music Corporation, X-Ray Dog Music, Inc., Federation Francaise De Tennis, The Scottish Premier League Limited, The Music Force Media Group LLC, Sin-Drome Records, Ltd., Murbo Music Publishing, Inc., Bourne Co.. (Attachments: # 1 Exhibit Exhibit 1, # 2 Exhibit Exhibit 2, # 3 Exhibit Exhibit, # 4 Exhibit Exhibit 4, # 5 Exhibit Exhibit 5, # 6 Exhibit Exhibit 6, # 7 Exhibit Exhibit 7, # 8 Exhibit Exhibit 8, # 9 Exhibit Exhibit 9, # 10 Exhibit Exhibit 10, # 11 Exhibit Exhibit 11, # 12 Exhibit Exhibit 12, # 13 Exhibit Exhibit 13, # 14 Exhibit Exhibit 14, # 15 Exhibit Exhibit 15, # 16 Exhibit Exhibit 16, # 17 Exhibit Exhibit 17, # 18 Exhibit Exhibit 18, # 19 Exhibit Exhibit 19, # 20 Exhibit Exhibit 20, # 21 Exhibit Exhibit 21, # 22 Exhibit Exhibit 22, # 23 Exhibit Exhibit 23, # 24 Exhibit Exhibit 24, # 25 Exhibit Exhibit 25, # 26 Exhibit Exhibit 26, # 27 Exhibit Exhibit 27, # 28 Exhibit Exhibit 28, # 29 Exhibit Exhibit 29, # 30 Exhibit Exhibit 30, # 31 Exhibit Exhibit 31, # 32 Exhibit Exhibit 32, # 33 Exhibit Exhibit 33, # 34 Exhibit Exhibit 34, # 35 Exhibit Exhibit 35, # 36 Exhibit Exhibit 36, # 37 Exhibit Exhibit 37, # 38 Exhibit Exhibit 38, # 39 Exhibit Exhibit 39, # 40 Exhibit Exhibit 40, # 41 Exhibit Exhibit 41, # 42 Exhibit Exhibit 42, # 43 Exhibit Exhibit 43, # 44 Exhibit Exhibit 44, # 45 Exhibit Exhibit 45, # 46 Exhibit Exhibit 46, # 47 Exhibit Exhibit 47, # 48 Exhibit Exhibit 48, # 49 Exhibit Exhibit 49, # 50 Exhibit Exhibit 50, # 51 Exhibit Exhibit 51, # 52 Exhibit Exhibit 52, # 53 Exhibit Exhibit 53, # 54 Exhibit Exhibit 54, # 55 Exhibit Exhibit 55, # 56 Exhibit Exhibit 56, # 57 Exhibit Exhibit 57, # 58 Exhibit Exhibit 58, # 59 Exhibit Exhibit 59, # 60 Exhibit Exhibit 60, # 61 Exhibit Exhibit 61, # 62 Exhibit Exhibit 62, # 63 Exhibit Exhibit 63, # 64 Exhibit Exhibit 64, # 65 Exhibit Exhibit 65, # 66 Exhibit Exhibit 66, # 67 Exhibit Exhibit 67, # 68 Exhibit Exhibit 68, # 69 Exhibit Exhibit 69, # 70 Exhibit Exhibit 70, # 71 Exhibit Exhibit 71, # 72 Exhibit Exhibit 72, # 73 Exhibit Exhibit 73, # 74 Exhibit Exhibit 74, # 75 Exhibit Exhibit 75, # 76 Exhibit Exhibit 76, # 77 Exhibit Exhibit 77, # 78 Exhibit Exhibit 78, # 79 Exhibit Exhibit 79, # 80 Exhibit Exhibit 80, # 81 Exhibit Exhibit 81, # 82 Exhibit Exhibit 82, # 83 Exhibit Exhibit 83, # 84 Exhibit Exhibit 84, # 85 Exhibit Exhibit 85, # 86 Exhibit Exhibit 86, # 87 Exhibit Exhibit 87, # 88 Exhibit Exhibit 88, # 89 Exhibit Exhibit 89, # 90 Exhibit Exhibit 90, # 91 Exhibit Exhibit 91, # 92 Exhibit Exhibit 92, # 93 Exhibit Exhibit 93, # 94 Exhibit Exhibit 94, # 95 Exhibit Exhibit 95, # 96 Exhibit Exhibit 96, # 97 Exhibit Exhibit 97, # 98 Exhibit Exhibit 97 part 2, # 99 Exhibit Exhibit 98, # 100 Exhibit Exhibit 99, # 101 Exhibit Exhibit 100, # 102 Exhibit Exhibit 101, # 103 Exhibit Exhibit 102, # 104 Exhibit Exhibit 103, # 105 Exhibit Exhibit 104, # 106 Exhibit Exhibit 105, # 107 Exhibit Exhibit 106, # 108 Exhibit Exhibit 107, # 109 Exhibit Exhibit 108, # 110 Exhibit Exhibit 109, # 111 Exhibit Exhibit 110, # 112 Exhibit Exhibit 111, # 113 Exhibit Exhibit 112, # 114 Exhibit Exhibit 113, # 115 Exhibit Exhibit 114, # 116 Exhibit Exhibit 115, # 117 Exhibit Exhibit 116, # 118 Exhibit Exhibit 117, # 119 Exhibit Exhibit 118, # 120 Exhibit Exhibit 119, # 121 Exhibit Exhibit 120, # 122 Exhibit Exhibit 121, # 123 Exhibit Exhibit 122, # 124 Exhibit Exhibit 123, # 125 Exhibit Exhibit 124, # 126 Exhibit Exhibit 125, # 127 Exhibit Exhibit 126, # 128 Exhibit Exhibit 127, # 129 Exhibit Exhibit 128, # 130 Exhibit Exhibit 129, # 131 Exhibit Exhibit 130, # 132 Exhibit Exhibit 131, # 133 Exhibit Exhibit 132, # 134 Exhibit Exhibit 133, # 135 Exhibit Exhibit 134, # 136 Exhibit Exhibit 135, # 137 Exhibit Exhibit 136, # 138 Exhibit Exhibit 137, # 139 Exhibit Exhibit 138, # 140 Exhibit Exhibit 139, # 141 Exhibit Exhibit 140, # 142 Exhibit Exhibit 141, # 143 Exhibit Exhibit 142, # 144 Exhibit Exhibit 143, # 145 Exhibit Exhibit 144, # 146 Exhibit Exhibit 145, # 147 Exhibit Exhibit 146, # 148 Exhibit Exhibit 147, # 149 Exhibit Exhibit 148, # 150 Exhibit Exhibit 149, # 151 Exhibit Exhibit 150, # 152 Exhibit Exhibit 151, # 153 Exhibit Exhibit 152, # 154 Exhibit Exhibit 153, # 155 Exhibit Exhibit 154, # 156 Exhibit Exhibit 154 Part 2, # 157 Exhibit Exhibit 154 Part 3, # 158 Exhibit Exhibit 154 Part 4, # 159 Exhibit Exhibit 155, # 160 Exhibit Exhibit156, # 161 Exhibit Exhibit 157, # 162 Exhibit Exhibit 158, # 163 Exhibit Exhibit 159, # 164 Exhibit Exhibit 160, # 165 Exhibit Exhibit 161, # 166 Exhibit Exhibit 162, # 167 Exhibit Exhibit 163, # 168 Exhibit Exhibit 164, # 169 Exhibit Exhibit 165, # 170 Exhibit Exhibit 166, # 171 Exhibit Exhibit 167, # 172 Exhibit Exhibit 168, # 173 Exhibit Exhibit 169, # 174 Exhibit Exhibit 170, # 175 Exhibit Exhibit 171, # 176 Exhibit Exhibit 172, # 177 Exhibit Exhibit 173, # 178 Exhibit Exhibit 174, # 179 Exhibit Exhibit 175, # 180 Exhibit Exhibit 176, # 181 Exhibit Exhibit 177, # 182 Exhibit Exhibit 178, # 183 Exhibit Exhibit 179, # 184 Exhibit Exhibit 180, # 185 Exhibit Exhibit 181, # 186 Exhibit Exhibit 182, # 187 Exhibit Exhibits 183 - 187, # 188 Exhibit Exhibit 188)(Figueira, Elizabeth)
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Figueird 142
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DOCUMENTS
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TRANSCRIPT LENGTII 11EADLINE
7842
071 609s1.783
words
Event Brief of Q2 2009
Google
Earnings
Conference
Call
Final
BODY
PARTICIPANTS
Maria Shim Google Google
Analyst. Broadpoint JR. Patrick Pichette
Google
CFO
Eric
Schmidt
Google
CEO.
Jonathan
Rosenberg
Citigroup
SVP
Product
Management.
of America
Imran Khan
Analyst.
IPMorgan
Christa
Chase
Co. Analyst.
Weisel
Mark Mahaney
Analyst. Collins
Justin
Post Bank
Quarles
Thomas
Analyst.
Partners
Ben
Schachter Analyst President
AmTech
Squali
Analyst.
James Mitchell Co. Analyst.
Goldman
Sachs
Sandeep
Aggarwal Nikesh
Stewart
Youssef
Global
Jefferies
Doug Anmuth
Spencer Analyst
Barclays
Capital
Analyst
Arora Google
Sanford
Sales
Operations
Jeetil
Business Deutsche
Dcv.
Wang
Credit
Suisse
Analyst
Jeffrey
Lindsay
Bernstein Steve
Co. Analyst. Weinstein
Patel
Bank
Analyst.
Heath Terry
Friedman
and
Billings
Ramsey
Analyst.
Pacific
Crest Securities
Jim Friedland
Cowen
Co. Analyst
OVERVIEW
GOOG
reported
2Q09
gross revenue
of $5.5b.
FINANCIAL
A. Key Data
DATA
From
Call
1.
2Q09
gross revenue
$5.5b.
2.
2Q09
CapEx
$139m.
PRESENTATION
51.
SUItviIvLRY
Aimotation
are
lvi.
5.
1.
Note
1.
Certain
financial
measures
to
like
EPS
net income compensation.
operating
margin
and operating
income
S2. stabilized for last
non-GAAP
Business
still
adjusted to
exclude
charges
relating
stock-based with
2Q09
Review weak
E. 5.
1.
Highlights
1.
Good
qtr.
3%
YoverY
cost to
growth.
to
2.
Business
appears
to
1.
have
despite
economic making
environment. business
to
3.
Implemented
4.
careful
controls invest
help performance.
1.
Goal
few
quarters
has been
more
efficient.
Will
continue system and
in iimovation.
Just fast
aimounced
teclmology
quality
Chrome Chrome.
OS netbooks
2.
effort
is
rethink
for
what
an
operating
in
should
be
based
3.
on
lightning
browser 100 search from
limovation
4.
key
long-term
growth
core
new Ads
businesses. fetches
1.
Did more than
facts
improvements.
Just
5.
introduced
Google
feature
Squared
called
2.
which
automatically
5.
and and
and
data
across revenue
quality
web
on
given
topic.
Has another economic
Search Gets
Options.
as
Quality
sales of
drove
identifying
healthy high and due
to tools
growth
despite
tough
ads.
3.
environment. with
better
Co.
for
6.
developed search
1.
new
ways
development areas
Experimenting
lot in
fimovative
ad formats
businesses.
particularly
in local
products rigorous
2.
video
which
should
help and
some
of these
new
on
Sales like
Has
1.
been
much more
acquisition.
management
measurement
focusing
resources
high potential
areas
Advertiser
Better
Page
Event Brief of
Q2 2009
Google Earnings
Conference
Call
Final
FD Fair Disclosure
Wire
July
16
2009
Thursday
142-0002
to identify largest well. to
2.
opportunity Helping
for
individual and
customers.
create
3.
7.
New
great to
Business ads easily innovate
1.
Display
1.
particularly click
including
studio.
1. 2.
YouTube
allowing
performed customers
marketers
rich
agencies
like
in
Double
Tools
build end-to-end 18-20
to
ad
campaigns.
Focusing
Mobile and
2.
Android. mobile
Expects division
at
somewhere
between 15000
Android powered
phones schools
on market
for
by year-end.
education.
4.
Motorola
handset
moved
all
users
GOOG.
3.
75
new
apps
Deployed
30000
employees
Valeo
indiscernible
S3.
another
10000 Review
to
employees.
2Q09 grew
that
Financial
PP.
1.
1.
Revenue
1.
Solid
revenue
growth and
despite
good
1.
expense
management.
2.
Gross
revenue
2.
3% YoverY
is still
$5.5b. vs.
Relative
2.
strength Applying
across last
business years hedging
to
Weak
to
macroeconomic revenue
environment. have Google.
1.
Dollar
quite
3.
strong
last year.
exchange
rates to
2Q09
would
3.
been
roughly
$500m
higher.
Recognized
$124m growth
verticals
of benefits
from
program
with and
4.
partially
compensate.
traffic like
com
contributed
signs to
majority of total YoverY
in certain
3.
up 3.5% YoverY
like
$3.7b
continued
electronics.
healthy
2.
growth. finance
to $1.7b.
Saw
of strength
relatively for
5.
consumer
shopping
computer
launches.
well.
3.
Others
continue
1.
be
weak.
Benefited
2.
from
number
partners
1.
of ads quality performed
AdSense
up
2%
for
YoverY
Solid
results
content Global
in particular.
Smaller
Display
business
experienced
strong YoverY
6.
growth.
costs Positive $2.6b.
2.
aggregate
1.
paid click
growth
per click impact
growth QoverQ
Down
due
to
13% YoverY.
weakening
for
2.
Up 15% YoverY. Up 5% QoverQ
dollar vs.
2.
Down FX had
2%
1.
QoverQ
Negative
seasonality.
Aggregate growth.
2.
3.
impact
1.
on
YoverY
of
US
1Q09.
7.
Geographic $2.9b
Performance
3.
US
International
1.
accounted impacted
52%Sic-see
and ongoing
acquisition
press release
or
of total revenue.
2.
UK
up 2% YoverY down 8% YoverY
from
cost
to to
$715m.
hedging
Negatively
2.
by
1.
FX
macroeconomic
costs S1.5b
3.
weakness.
Partially advertising
offset
by revenues
2.
program.
Expenses $14m
Traffic in
or
27%
of total
revenue.
Other
of
revenue
based
$655m
including
I.
stock-based
compensation. $1
to
Other
flat
OpEx
2.
$1.5b
1.
including
approx. $279m operating
profit
in stock-
compensation. stock-based
costs full-time
OpEx
while
at
lower
by nearly
increased funding
20m YoverY
$2.2b
vs.
and
QoverQ.
Non-GAAP
excluding
compensation
fully
$1 .9b
last year. in
Non-GAAP
display
1.
operating and
margin
5.
39.2%.
4.
Managed 20000
business
end.
3.
prudently employees
strategic
growth 375
areas from
search
mobile
though
apps.
Had
hire
approx.
in
2Q09-end
down
and
approx.
to
Q09-end.
in sales
Even
continuing
to
many
areas
ended
with
decrease
1.
primarily
related
reduction
and
Cash Management
focused
Other
income
1.
expense
this
OTE
was
right
marketing of $1 8m.
2.
positions For past
announced
year and
at
1Q09-
net expense thing
to
most of
2Q09
2.
on
capital
preservation.
Believes
3.
do
given
recent macroeconomic $1 8m.
rules.
1.
environment.
relative to
Realized
lower yields
prices
on investments.
Co. from
vs. to
Realized
gains on
marketable
as
securities
3.
High
volatility
options
strike
required
accelerate
2.
hedging Continued
expenses
to
per
FAS
133
Impact
on
OIE
while
on FX
benefiting
benefit to
program
from
roughly
equivalent
last
qtr.
recognize
benefits
from
to
hedging recognize
program
slightly
weaker US
revenue. and
effect
5.
dollar
1Q09. tax rate
4.
Cash 20%.
flow
1.
hedging change
program
to
allowed
approx.
$124m
and
international subsidiaries
Effective
Any
mix of earnings
related
between domestic
items have
effect
international
rate. 6.
on earnings of various
$1 .6b. in
2. 7.
hedging
1.
activities
and
hedged
on tax
Operating
significant
cash
flow
CapEx
8.
$1 39m. cash
3.
While
recent trend in CapEx
4.
has been with
declining
results
will
continue
to
make
1.
investments
seasonality.
CapEx.
Free
flow
$1.5b.
Summary
business
1.
Pleased
especially costs
3.
despite staying
to
Expected focused impacted
S4.
Economic
situation.
YoverY
in
FX
core
fluctuations.
2.
Disciplined
about and
while
on
fully
investing
on long-term
opportunities
display
mobile
apps.
3Q
tends
be
by summer 2Q09
feature. fast
is
seasonality.
Operational
1.
Review
slice
JR.
and
3.
1.
Key Launches
search
to results in
1.
To
better
serve
like
power
users
or
launched
new
2.
Search Basic key user
for
all
Options principle
Lets one than
dice
different
ways
search
1.
by time
type of result. but speed
to
better
2.
slow.
Continues
focus
on reducing
with
Picasa.
latency
worldwide
allows
is
other products.
pictures iterate
Launched
to
number of improvements
and does
it
One
improvement
computer. about twice
3.
run slide of ship
2.
show
fast
of
uploaded
often.
1.
web
quickly
as
if
pictures
were
labs
stored on
features
4.
Has
policy
and
out
1.
Redesigned
feature last
1.
Google week
like
Labs and
automatic product
releasing
new
per month.
Gmail
is
pushing
roughly
one
new
message
development products
or bets. for
translation.
Entire
suite to
of apps
products big product
robust
bets
enough.
Taken
out of beta
insights.
week.
5.
Runs
by
encouraging
teams
make
on key
and
called
teclmical
Believes on
to
most innovative
breakthroughs
the
historically
6.
considering
Search
Maps
Gmail
News
standard
in
Chrome
were based
5.
1.
teclmical
Recently
became
bullish
on new emerging
2.
HTv1L
where
mobile
Helping phones
that
make
with
web
rich
platform
are
powerful
the
and
rich
3.
applications.
Especially mobile
important versions
mobile
high-end
browsers using apps
becoming
5. 7.
norm.
This qtr.
launched
of Gmail and 05.
1.
web new
maps
run in browser of web-based
HTML
Making
better
another
faster
tecimical
bet with
8.
Google
Chrome
and
as
Whole
generation with
demand
1.
much
user experience.
Innovating
driving
traffic
monetization
mobile
and YouTube.
Mobile monetization
picked
up good
bit
of
momentum
search
Page
Event Brief of
Q2 2009
Google Earnings
Conference
Call
Final
FD Fair Disclosure
Wire
July
16
2009
Thursday
142-0003
grew driven
display than
mostly
by on
smart phones. these
1.
1.
Seeing
users on
as
these
high-end
phones
2.
are
active
and
engaged
beyond
views
search
so
advertising
in
phones
is
emerging
an
interesting
mechanism. videos
On YouTube
every
is
monetized
actively
1.
more
tripled
past year. videos
Now
10.
monetizing
billions
of views
9.
of partner
month and
promoting
featured dozen
partner
on home
qtr.
watch
and
search
pages.
One
fimovative
area
ads quality.
online.
2.
Shipped
1.
more than
product project helps
improvements
and
11.
this
Wave
totally
new
way
1.
to
communicate
and
collaborate
Whole
was
conceived Walkabout.
create
developed
by small team
in Australia.
Worked
completely
all
autonomously.
1.
Called the
Android
Chrome Wave
and
Chrome
OS
are
Open
Source.
This kind
of open
iimovation
next generation
of breakthroughs. SUItvIIvIARY
QUESTION AND ANSWER OPERATOR
IPMorgan.
Thank
you.
Operator Instructions.
And we
will
take
our
first
question
from
Imran
Khan
from
IMRAN
think revenue
for
KHAN ANALYST
about
that the
IPMORGAN
search
the
CHASE
volume
the
CO. Two
questions
one
on
the
mobile
application
site the the
you talked
mobile
has increased
significantly.
Could
it
you help us understand
your search
search
difference
on
mobile
versus
web
and
do
you think
will
caimibalize
on
desktop
And
deal
that like
secondly
some
could
argue
that
Google
of your
to
solidified
its
search
market
share search
through
some of
the
distribution are will
Ask
and AOL.
Considering
one
competitors
launched
new
teclmology and
how
worried
you
be
to
they could
be potentially
distribution
aggressive
win back
some
of those
distribution
deals
how
aggressive
you
hold
back
to
those
deals Imran thanks
is
ERIC
things mobile
SCHM
have done
their
CEO GOOGLE
last
for
your
to
questions.
On
the
the
mobile
ads.
It
search
turns
side
one
the
of the
key
we
in the
few
months
Typically
we
there
have
started
show
desktop
there
out that kind
separate and
ads have
own
formats.
wasnt
enough
demand
werent enough
of creatives
so forth. So
we
and
started the
showing
the
desktop and
ads on the
that
mobile
is
browsers
kit
of high
quality
and
these sudden
at
of course
include
the
iPhone
Android phone
anything
also the
web
inspired
rates.
browser.
All of
we
started level
seeing
if
tremendous desk-top-based
number of searches
as
if
and
very good
click-through
it
So they monetize time that those an
similar
they are
better
we
are
sharing device
same
auction
makes
the
sense
over
ads should even
perform
than
on PCs because
on
today.
mobile
we know more
about
person and we can
have
more targeted ad but
we dont
do
that
JONATHAN
thing
see that
ROSENBERG
searches
to
SVP PRODUCT
about
MANAGEMENT
volume.
the
GOOGLE
there
Yes
is
this
is
Jonathan.
The other
dynamic.
their
would
say yes specifically tend higher
to
caimibalization
dont think Mobile goes
reverse from share
to
is
really
caimibalization
are
We
that
mobile
compliment desktop
mobile
traffic.
up when
true for the
people
away
from
desks
so weekend
tends second
be
for
Of course
to
desktop.
On
the
question
think
it
is
kind seen
of too early any
large
tell
market
date.
share
perspective
what
is
going
to
play
out in the
long run.
We
certainly
havent
shift
in
IMRAN
PATRICK
KHAN
Thank
you.
PICHETTE And we
CFO GOOGLE We
will
will
go
to
the
next
question
please.
OPERATOR
take
our next
question
from
Mark
Mahaney. two
questions.
MARK MAHANEY
the
ANALYST
What
are
CITIGROUIP Thank
of the
for
you. Also
Eric
at to that
business
is
is
stabilizing. or
one
two most important
there the cost cost are lot
things
you
look
you mentioned make that call as
have been gained
you think
to
whether over
the last
business couple
that is
stabilizing
not And
talk to
then
Patrick
of cost efficiencies looks
will stay like in
of quarters.
to
Can you
us about
that
what
the
structure
coming
place
out of the
recession
or
is
whenever
this
what
extent should
we
believe
efficiencies
post the
recession
more
temporary
efficiencies
Thank
you.
stabilizing
ERIC
off the
SCHM
all
On
the
question were
we
off and
quarter
it
year and
of
sudden
our metrics and
ago became
we had no
clear that
idea where
the
bottom
was.
We
started
starting
roughly
Christmas
people
were
spending
more time searching
when
they purchased
products
they were purchasing
products
of less value.
Page
Event Brief of
Q2 2009
Google Earnings
Conference
Call
Final
FD Fair Disclosure
Wire
July
16
2009
Thursday
142-0004
Furthermore
not fully
when
they did so the
the
whole
process
just
took
more
time.
It
appears
as
though
although
the
RPMs
have
recovered with
the
other aspects exception
of behavior of the
to
have
in fact
come
the
back.
And
had been
notable
financial
vertical
other
verticals
in tells
particular us to say
shopping
and travel which
stabilizing.
significantly
effected
appear
be
recovering.
spiral that
So the
sum of those
the
word
We
are
not at the
moment
looking
at that
downward
second
we
thought
we
might
see six months
ago.
MARK MAHANEY
ERIC SCHMIDT
On
the
question--
Lets
ask Nikesh
to
offer
some perspective
on how
this
is
playing
out.
MKESH ARORA PRESIDENT GLOBAL
add
to
SALES
it
OPERATIONS BUSINESS
geographical point
basis as
DEV. GOOGLE Yes
are
just in
to
what
Eric
has already around
the
said
if
you
look
at
from
the
well we
in the to
seeing
stabilizing
some more
of our key markets uncertainty categories because
world.
Also
from
an
to
advertiser
of view
earlier
year there
seemed
bid
this for
to
be
amongst our advertisers
and major very
verticals.
who seem
now
have
come
stayed
back
pretty
and continue
go
back
and
major
The small
advertisers
have
much
consistent
throughout
process
they are
ROT
the to
focused. of search. and understand
They watched
seeing
the
understand and
value
They
what they
to
are
investing
for.
Large table
advertisers
have
is
sort
of
are
wanted
watch
from
wait for
while who seem
side as well.
have
come
back
to
the
and
that
where we
stabilization
the
advertisers
PATRICK
really
PICHETTE
Google
that
So that
covers
the
first
question.
Let
me jump
on the
last
second
one.
think
or four
think quarters
we
if
can
be
proud
at
about
the
how
Googlers
have
managed
responsibly
in the to
two
or three
you
think
everything
culture
economy
frugal
has thrown at us.
We
have
managed
is
keep
that
the
right the
balance place
too and
between
the lose
Google
kind
of being around of all
to
but generous
environment.
That
really
portrays
we
didnt
our
of magic
that.
And most
clear
think be
that
we
are
managing
costs
the last
the
Company
to
best position
fully
itself for in
the
long-term
growth.
So
it
is
we
that
are
able
disciplined
about from
but at the few
same time
is
investing
ability
our long-term
opportunities. to
So
it
think way.
what we
have
can
take
away
quarters
we
have
that
and
we
continue
manage
that
So we
the
flexibility
we
need.
MARK MAHANEY
PATRICK PICHETTE And we
Thanks.
We
will
will
go
to
the
next question from
please.
OPERATOR
JTJSTIN
take
our next
question
Justin
Post
from
BOA
Merrill Lynch.
clicks
POST ANALYST BANK OF AMERICA
like
if
Thank
you.
CPCs
it
looks
we back
out currency
or
is
at that
44 due
million
to
they were up
on paid My question 4% quarter-over-quarter.
is
and
CPCs. First on
any kind of
Is there
sign of stabilization
in that
number
is
mix and seasonality Could you
talk the
little
And
clicks
in
the
second
the
thing
paid clicks growing
are
15%
slower
growth. than
bit
about
the
mix
Are
the
higher
value
that
say
US
and
UK
or
maybe
pretty
some of
even
lower your
value
entire
clicks
internationally
Could
be
long-term
CPC
pressure
paid clicks This things
growing
across
system system
are
Thank
think
pretty the
you.
the
JONATHAN
seasonality probably have
ROSENBERG
One of
the
is
Jonathan.
Just
is
back
Brazil
to
the
clicks
across
for
the
growth
is
more
and mix.
that
we
see
that
and
China
example
clicks
significant
and
disproportionately and think
more
clicks.
So
to
think
we
are the
seeing
mix of
from
high
is
CPC Western
downward
as
European
pressure
rule
countries
US
the
seeing
less relative to
some of more
growing markets.
this
So that no
overall
having
on CPC.
the
bids tended
decline
earlier
year and
are
longer
declining
now
general
across
board.
JTJSTIN
POST
Thank
you. Thanks.
PATRICK
PICHETTE And we
We
will
go
to
the
next question from Christa
please.
OPERATOR
CHRISTA
context question
will
take
our next
question
Quarles
from
Thomas
Weisel
Partners.
QUARLES
and
its
ANALYST THOMAS
realtime searching about
the
WEISEL
attempt
PARTNERS
to
Hi.
My
question travel do
is
on
vertical et cetera.
search
in the
of Twitter is one
and
even
carve
out shopping
local
So my
offerings
how
do
you think
concept
of vertical
search
Two how
strong
you believe your
Page
Event Brief of
Q2 2009
Google Earnings
Conference
Call
Final
FD Fair Disclosure
Wire
July
16
2009
Thursday
142-0005
currently sort
are
and
particularly
how
well
you
as
are
merchandising about
those
offerings
to
consumers
And
in
three
do
you
still
see
of big monetization
improvements
Historically
you
think
vertical
search
and
improvements
because have
UI
attempts to
are sort offer
ERIC SCHMIDT
answer
specialty out. the
we
have
it
not used
as this
the
term
vertical
search
Google
said
of
question
without
this
categorizing
or
that.
category
or that. to sort
Other of take
people
the
we
going This
is
to the
service
around
So we
work
very hard
there
is
query
without
especially
bias. as
way
it
plays get
So with respect
to vertical
search
headroom
plenty
of such
headroom
our ads products
better.
And
that
so the
in fact
reason
effect
we mentioned
the
for
example
that that.
in
travel
things
have
sort
come
back
but finance
is
has not
site or
because
does
revenue.
We
understand
But we
try
not to do
to
of say there
It
travel
what have
in
you.
Longer
term you never
verticals the
know
ads are do
what kind
particularly that
of fimovation
we
can than
do
that.
has been search
observed
results.
for
example
not yet
some of these
thought through
more valuable
even
some of
the
We
have
what we
will
with
observation.
JONATHAN
opportunity So
for to
ROSENBERG
think
it
is
the
case
this
is
Jonathan
further
on
the
vertical the
side leads
that better
there
is
lot
of
get incremental
the
monetization area and
gains
travel
where you can
area then
are areas
qualify
for the
advertisers.
example
finance
the
where
there
is
lot
of opportunity from
to
do
that
so that so
you
that
end
up putting
can
further
more information
qualify
in the or
ad
and
incrementally
in the
getting
more information
interested in
the
customer
you
then
whether an
for.
not the with
is
customer
finance
area
to
is
particular specific
type of mortgage
that that
and
you send
is
them
to
advertiser
whom
lot
they are
more
likely
consummate
transaction
advertiser
willing to pay
So
there
of opportunity
there.
CHRISTA PATRICK
QUARLES
PICHETTE And we
That
is
helpful.
Thank
will
you.
Thank
will
you.
We
to
go
to
the
next question from
please.
OPERATOR
go next
Ben
Schachter
Broadpoint
AmTech.
recall
BEN SCHACHTER
advertisers that
ANALYST
about
will
BROADPO
Google
spend
in
AIvITECH
as
So years ago
and not sales
Eric
discussing guess and
it
the
idea that
the
should give us
in
be
thinking
their
COGS
So begin
and
marketing. images
was
notion
you
dollar
we
give
you
should
dollars
sales. to
now
to
with
see
more video
structured
data
just
appearing
traditional
this
am
just
wondering
actually
we
expect
the
new
monetization
methods beyond
text-based
CPC
appearing
within
soft
of basic
Google.com
search Thanks.
PATRICK
PICHETTE
will
let
Nikesh
answer
that.
ARORA
advertising monetization so you
are
Yes
in fact
thank
you very much
have have
Patrick.
In fact
we
on
are
beginning
to
see other forms
of based
and monetization on our
display to see
we
already
CPM
even
based
monetization
our video
properties
parts
we
have
CPC
networks.
different
We
forms
CPA-based come
to
monetization
forth in the
on
certain arena.
of our display
networks
beginning
of monetization
online
And
as
we go
forward
as
more and
more media begins beghming
in that to
shift
towards
online
we
are
going
to
see different
in
forms
of monetization. display
properties.
Most recently
we
are
is
see more and
more branded
advertising
on YcuTube
our various
So yes
the
trend
direction.
PATRICK
PICHETTE And we
Thank
will
you. Lets our next
go
to
the
next question from
please.
OPERATOR
JAIvIES
take
question
James
Great.
Mitchell
from
Goldman
Sachs.
MITCHELL
into
little
ANALYST GOLDMAN SACHS
bit
Thank was
you very much
controlled
first
for If
taking
the
question.
wanted some
if
to
dig
on why
this
the
general
last
and and
admin spending some severance
and
also
so well
in the
is
memory
of 2009 of
serves but
legal are
costs
quarter
year
quarter
costs
if
quarter
you had wondered
there
any
abnormalities
in the
second
of 2009
there
any reclassification
GA
into
Research
Development
PATRICK
some kind few
other are
PICHETTE
So
will
answer and
that.
So you
are
right
that
at
the
last
quarter
we
and
talked
about
there
were and and
of extraordinary
items.
items here think
that
there.
You
see
will
is
remember
result
legal
settlements prudent focus
restructuring
sales
Otherwise
the
what you
and
the
of good
is
on our general and admin
apart
we
just
really
happy with
mentioned.
trajectory
where we land
but there
nothing
extraordinary
from
what you have
already
Page
Event Brief of
Q2 2009
Google Earnings
Conference
Call
Final
FD Fair Disclosure
Wire
July
16
2009
Thursday
142-0006
JAMES
PATRICK PICHETTE And we
Thank Thank
will
you.
you.
We
will
take
the
next question
please.
OPERATOR SANDEEP
Eric can
take
our next
question
from
Sandeep
Aggarwal Thank
will
from
Collins
Stewart.
AGGARWAL
ANALYST
of
COLLINS
the
STEWART
of computing
you very much
like
for
taking
the
question. also
you give
us some glimpses
how
world
the the
look be
with
Chrome
and
if
OS
it
and be
maybe
deal with on will it be preinstalled any comments will it work with existing installed base versus just
PC
new
OEMS
we
can
it
downloaded
you.
can
downloaded
PC shipments Thank
did the be
ERIC
going
to are
SCHM
Open
talking to
Thank
Source
to
you.
What we
talked
about
when
aimouncement
to the the the
week
ago
was
that
we were
now.
as the
build an
in fact
version hardware
of Chrome
OS
that
would
available
PC community ARNl
vision architecture of cloud There
year from
as
We
Intel
PC
manufacturers
are
of both
architectures
that really
both
fulfill
well
architecture Other
design
products
are
that
very very exciting worked
out based so forth and
the
computing.
will
assets
of our strategy
there
still
to
be
on
the
feedback
and focus
the
so forth.
for that
be be
the
reference
hardware and
in
spec
would
be
appropriate speed of
features
and
and our primary
use of
all
product
that
will are
speed
promise
particular computing.
speed
of boot
computation
seamless
web
services
of cloud
Will
the
software Because people OS.
to
it
be
is
generally
available
for
download
have
the that
will
it
run on
existing that
is
hardware
other
those
are
things and
it
to will
be be very of
worked
possible
the
out. for
take
Open it and do
Source
we wont
kind
of restrictions
to it
people one
have
of the
almost
anything
they want
which
another
great benefits
Chrome
SANDEEP
PATRICK
AGGARWAL
PICHETTE And we
Thank
you very much. go
to the
Thank
will
you. Lets our next
next question from
please.
OPERATOR YOUSSEF
By some
that true for
take
question
Youssef
Squali
from
Jefferies
Company.
quick questions
online for
SQUALl ANALYST
June
as
JEFFERIES
to
CO. Thank
maybe
soft or
you very much.
softer
Two
Jonathan.
accounts
was reported well and was
have
been
than
April and
to
May
for
for
advertising.
Was
Google
there
anything
bit talk
outside of just and
seasonality
account
that of videos of
right
And
per month. millions
then
YouTube
last
you talked
heard
little
about about
to
it
earlier
you
talking
said
that
you were
it
monetizing
talking
billions
The
time so are
you guys
it
you were
and
about
you were
are the
about ad
hundreds formats
of videos
we
comparing
apples
apples
guess
lastly
what
most popular
now
JONATHAN
quarterly factor
ROSENBERG
so
really
Sure
say
Youssef. with
Let
me
start to
with
the
first
question. or
We
generally
trends
cant
anything
the really
respect timing
how
June
was
wasnt
different.
The only
dont parse intra anomalous
in this
quarter
it
think
in
was
but
really
general have
of Easter versus
else that
in the offer. that
previous think
and
this to
year say
was
Q2
dont
anything
in the
can
believe in Q1 year it was what said was that or what
billions
meant
month.
was
that
monetizable
views
have
tripled
last
year and
we
are
monetizing
of views
every
Nikesh
the
may
pages
be
able
to
give
you
sense ad
from
an
advertiser
perspective videos and from page
across
the
the
home
page
the
watch page
videos
and
search
where we have
on
the results certainly
different
formats
is
featured
getting in the
video
promotion
in
promoted
of what have
which most
we
are
doing
in.
pages
seen
which he
lot
feedback
customers
terms
they are
the
interested
have
of interest
home
mastheads
which
we
been
introducing
recently.
Nikesh
NI
established
do
you have
any
other feedback
from
the
customers
to
ARORA
advertiser significant
think
Jonathan
just that
to
add
what you said homepage
is
yes we
are
begiiming and
is
to
see
that for
YouTube
customers.
for sale.
has So
in the
space now
sell-through
in
the
YouTube
of relevance
desirable
we
are
seeing
most of our major
lots
markets where we have
advertising
like
YouTube
is
homepage
In addition
short clips that
we we
are are
begiiming begiiming
to to
see
of interest
in pre-roll
which and
what customers
deal
want
recently
on
the
acquire
from
our major
partners
Disney
the
we
did
with
Page
Event Brief of
Q2 2009
Google Earnings
Conference
Call
Final
FD Fair Disclosure
Wire
July
16
2009
Thursday
142-0007 so think
in the the
next phase of doing That
of YouTube various
is
going
to
be
towards
pre-roll
videos
in the
on
past.
short
clips
and
long-form
video
which
are
process
deals
which
we
have
aimounced
YOUSSEF
PATRICK
SQUALl
PICHETTE
is
helpful.
Thanks.
Thank
take
you
for
the
question.
Lets
go
to
the
next question from Barclays
the
please.
OPERATOR
We
will
our next question
from
Doug
Anmuth
Thanks
think
Capital.
DOUG
mentioned
search
ANtvIUTH
display
ANALYST BARCLAYS CAPITAL
was
the the
for
taking
is
question.
Eric
you
recently
that
next billion
years.
dollars Is there
business anything
and
this that
sort
of
led
change you
to sort
because of make
at this
think
this
you
said
basically
over
sort
last
couple about
in particular
has
change
from
the
beyond
what you
of talked and
around
YouTube
the
here
How
do
you think
you
are
benefiting
that
fits
point
DoubleClick Thanks.
acquisition
also
curious
about
Google Exchange
rollout and
how
into
your
strategy
NI
One
is
ERIC
SCHM
ARORA
on
see the
Nilcesh has really
been
driving that
the just to to
area.
Nikesh
about
in the
why dont you summarize where we are
display
for
Thank
you
side
Eric.
think
way
talked couple
think
us
is
actually
in
multiple strands.
clearly to
YouTube
which
in.
you
think
about that
terms second
it
of homepage area of focus
well.
and
for
pre-roll
ads which Google
we
are
begiiming
some good
again
sort see
trajectory that the
us
is
the
content
network
There of the search because
where we
has been
revenues
are
doing
well
and
is
performing
of an
started
aversion going
to
more performance-based
to
display
clicks.
advertising
in are
the
last
quarter
sort
because
most
to
advertisers to
have
back
are to
focusing
shift
on CPC away
are
and
Where
to
we
bringing
of the
metrics
display display
effectively inventory
and we
seeing
back
from
to
CPM
more CPC
to
on
the
content
that.
network
continues
rise and people
begiiming
want metrics
tremendous
measure
On we
have
the
third as
integrated
you asked
that
the
the
DoubleClick
integration
we
have
made
and
progress to the and
Ad Exchange
traction across
the
is
now
both
shift
DoubleClick
all
Exchange work
think with Eric
with an
is
AdWords
that that
AdSense
we
are
seeing
where
publishers
advertisers
parties
agencies
in the are
want
to
exchange
right that
allows
is
us to expose area where
inventory
the online
board
going
to to
transaction. to see
So
the
next and
advertising
all
and
we
going
tremendous
growth
in the
display
space
we
are
exited
about
three
areas
individually.
DOUG
ANtvITJTH
Thank
you.
PATRICK
PICHETTE And we
Thanks
will
Nikesh
our next
for the
answer. from
So
we
will
go back
from
to
the
next question
Suisse.
please.
OPERATOR SPENCER
wondering
rolled that
if
take
question
Spencer
Wang
Credit
WANG ANALYST
could
talk
CREDIT
bit
STJISSE
the
Thanks.
Good
afternoon.
Just
two quick
the results
questions.
was
since
you guys
little
about
new
trademark
policy
and
what
have
been
you
out since
mid-June
follow-up again
And
trajectory
then
just
is
it
on
the
YouTube
the
now
some
just
function
of increasing
rates
When you guys talk about YouTube question. number of monetized views Or can you talk
and
being
little
on
bit
better
about you.
maybe
of the
click-through
on
the
ad
formats Jonathan.
what you
handle and
are
seeing
now
versus
previously
Thank
JONATHAN
first.
ROSENBERG
implemented
that
Sure.
This
is
will
the
specific
it
question
just
on
the to
trademark
the
change policy
believe
we
around
the so
middle
of June can
basically
is
an
update ad
trademark
if
in the
US
for or
Google.com
information
AFS
site
and
for
AFC
the
that
advertisers the
use trademark
terms
in their
creatives
they are
resellers
an
product
with
trademark.
And
you
can
generally
certainly
we
try
are
seeing
significant
interest
in
that.
dont have
any
it
specific
is
revenue
used.
numbers
to
offer
you
but
some ads yourself
side
and
get
sense
of
how
frequently
being
On
the
YouTube
Nikesh
do
you have
trajectory
some comments
has effectively
selling
ARORA
formats.
Yes YouTube
into the selling to
been
about
an
ability
to
scale.
We
we
are
have have
introduced
ad
We
sort
have
gotten
process
cycle of agencies
sell-throughs
and advertisers The reason
and
been
able
to
it
go
is
out and
of create
our sales
force
go
and
make
these
happen.
we
excited
about
Page
Event Brief of
Q2 2009
Google Earnings
Conference
Call
Final
FD Fair Disclosure
Wire
July
16
2009
Thursday
142-0008
we
have
finally
got
all
the
pieces
in place.
The agencies
are
getting
into
the
selling
process
and
the
buying
process
and
getting
our teams
ready.
Secondly
on Youlube we The promoted
are
also
now
getting
excited can
about
the
pre-roll
stuff
because so
we we
with
the
are
begiiming
shift fact
to
bring
more
content.
videos
idea where we content
pre-roll
promote
partner
content
upfront couple
the scale
can
the
more and
our teams
that
more
are to
user views
towards
selling
more premium
advertising as
allows
to
us to create
more inventory
that creates
that
now
drive
out there
this
various
advertisers
and
breadth
we need
forward.
JONATHAN
ROSENBERG
Sure. to
And Nikesh
pre-rolls
if
what has been you look on
the
the
impact
on
the
user experience
at
from
pre-rolls accepting of
ARORA
that
The
web
going
for
it
if
you look
have
to
premium
it is
content
users are
when
they
are
going
or are
watch
premium
content
to
they are
to
to at
see
supported
It is
either
by some form
accepted going user
to
advertising
funding
that
if
perhaps going
to
they are
to
going content
have
pay
some point
in time.
becoming
it
behavior
they There
watch
where people
around do
have
this
invested
area.
money
in creating
they are
watch
pre-roll.
seems
be
general This
are
acceptance
JONATHAN
there
is
ROSENBERG
drop-off
so
is
Jonathan.
We
look carefully
there.
at the
drop-off
rates
with
the
pre-roll
and
very
little
we
generally
pretty
optimistic
SPENCER
PATRICK
WANG
Thank
you. you. Lets our next
PICHETTE And we
Thank
will
go
to
the
next question from
please.
OPERATOR
JEFFREY
YouTube
and
take
question
Jeffrey
Lindsey
from
Sanford
Bernstein.
LINDSAY
the increase
ANALYST SANFORD
in the
BERNSTEIN
is
CO. Thank
actually
you. Could
ask given
the
changes
or
is it
in
amount
do
free
of advertising intend
to
YouTube
profitable
on
contribution
basis
for
net negative charge
for it
And
then
it
secondly be given
you
as
make
any money
from
will
the
operating
system Will you
you.
example
or will
part
of Google
Apps How
we dont
that
work
Thank
PATRICK
that
PICHETTE
pleased
to
Right.
So on
trajectory
the
first
one
give the
really
economics pleased both
of YouTube.
in
What
its
can
tell
you
is
we
is
are
really
with
the
of YouTube.
We
are
terms
see
of
revenue
growth
and
let
which
business answer.
really for us.
material
YouTube
and
in the
not too long distance
really
future
the
we
actually
very profitable
good
So from
that
perspective
we
are
pleased
with
trajectory.
On
the
second
one
will
Eric
ERIC SCHMIDT
Source read
the
Yes on
may be
will
the
Chrome ways
said in this
OS
because
it
is
Open
Source
from
it
we
do
not plan to core be
charge
for
it
in
if
an
Open
forum.
There
other see
which
is
we make money
Open
Source
but the
will
operating
for
system
anyone
you go and
use.
blog post
you
we
an
project
which
the cost
available
to
JEFFREY
opportunity
for
LINDSAY
you
to
So that any
means
that
even it
though
you incur
of doing
the
development
there
is
no
make Well
money
with
ERIC SCHMIDT
there are
first
remember
that
we
do
this
with
lot
of products
the
so for argument
example
is
our Android product
many
because
other pieces
of tecimology
to
Google builds
use the
or internet
and
in
rough
that
we
do
things that
are as
strategic
they get people
ultimately search
clever
and
new
use the
internet in
more
they ultimately strong and each and
more
watch more on YouTube
way more and we know and we then know that our
that
they
advertising
works
particularly
targeted
way.
to
So we do not
strategic
require are
every
the
project better
be
completely
profitable the
or
not profitable.
better
We
look
at
them
in
context
they making
especially
web
place.
And by making
we
have
lot offer.
web
that
place
that
by
getting
more and
in
more people
online
on broadband us because Great thank Thanks
will
coimections targeted
of data
says
ultimately
results
very
strong revenue
growth
from
of the
ads that
we
JEFFREY PATRICK
LINDSAY
PICHETTE And we
you. Lets
to the
Eric.
go
next question
please.
OPERATOR
JEETIL
take
our next
question
from
Jeetil
Patel
Deutsche
Securities.
PATEL ANALYST DEUTSCHE
fees and
if
BANK
not but
Great
thank
you.
couple
of questions.
When
you look
at
OEM
licensing
that
makes
sense
or
am
just
broadly
what
is
your view
on consumer paid services
Page
Event Brief of
Q2 2009
Google Earnings
Conference
Call
Final
FD Fair Disclosure
Wire
July
16
2009
Thursday
142-0009
if
that
makes
of
sense
in
terms
of leveraging
your
it
audience be your
and
the
lariat
of services
other
that
you
offer
today
to
go
after in
somewhat Chrome
consumer pay model
over
whether
own
products
or
products
say ISVs
participating
OS
time
question back around budgets
until in the the
And
they
the are
then
second
holding trend that
of late seasonal
as
you
talk
to
marketers
and
advertisers and
are
perhaps
budgets have seen
strength
of August
September
onward
you hearing that which is typical
of
seasonality
we
past
question
to
if
ERIC SCHMIDT
the for If
it
So on the
will
first
part
of the
our platform
strategy
works
that
and
if
there
are
many
is
users of
true
Chrome
all
OS
there
be
many
opportunities over
the
build profitable of computing.
right
services
on top of
they
are
platform. to
That
if
it
has been
successful.
of the
successful
platform
it
plays
history
And now
see
likely
be
large
is
not successful
then
doesnt
the
really existing
matter.
So our focus
systems
is
on building
broadly
truly that
new
experience peoples
lives
something day-to-day
very different basis
in the
from
operating
and
then
how
can
touch
on
new
model
it
of cloud
computing.
As another
subscription of course services
general
statement
that
is
certainly
my
belief
that
you web
will will
see
duality
between
successful and
advertising advertising
and
services
is
and
eventually
or
monetization
leaders
in the
have
very
model
subscription
which
Google which
that
the
leader
one
of the
in
so
and
also
fair
number
of strong
successful
include
micropayment
has yet to
or like
systems and
be built for
in
forth
and
so on.
And
either
infrastructure
my
that
view
broadly.
But
it
makes
sense
that
ultimately content form
first
will
be
advertising
supported
things
charged
and
content and
so
here
on.
includes
content
that
in the
of movies
half
and videos
question.
and
so forth
but also
software
and
so forth
With
that
ends
the
of the
Go
ahead.
JONATHAN
JEETIL
ROSENBERG
Yes.
think
the
second
half was just
about
advertiser
budgets.
PATEL
JONATHAN
from
the
ROSENBERG
The one thing So they
if
guess
Nikesh
like
advertisers. daily
would
always has
out their
the right
budgets.
to
will
from what he is actually maybe give you perspective hearing remind you there though is most of our advertisers are not maxing take more clicks if we can give them to them. So in many ways that is not can
to
question
ask but
Nikesh
specific
views
of what
he
is
hearing
from
the
advertiser
community
that
might
NI
is
be helpful.
ARORA
convincing
so
think
Jonathan
that
you
is
are
right.
Effectively
what we have
and
been
spending
inventory.
our time with Inventory
the
advertisers
them
search
an
ROT-based
us to open
media up
their that to
we
cant
create
it
depends
set
on
consumer behavior
vigorous
their day.
they have
worked
with so
budgets they will
and put buy
out there
at as
what they
price
very
ROT benchmarks
open
with
on
their
bidding
we
understand allows
click
certain
is
but they keep
that particular
budgets
us for the
most part
which
them
buy
as
much
inventory
created
on
JEETIL model
from
PATEL
kind of
Eric
quick
follow-up
as
on
that
ads versus
subscriptions.
Do you
think
that
there
is
business
royalty standpoint
ISVs build out apps
question.
on top of Google
Chrome
OS
JONATHAN
JEETIL
ROSENBERG
Okay.
Again
too specific
PATEL
JONATHAN
applications experimenting
ROSENBERG
Exactly ads inside
We
how
dont know
yet.
It
makes
perfect
sense
that
there
will
be
new
people
forms
of
are trying
distribution.
they get monetized probably There about
is
multiple ways. subscription
There
are
who
are for
with
of applications.
is
obviously
for
the
model
which
really
others
and
or
we
will
know.
The good
news
we
can
talk
this
long time because more.
we dont
know
year
two.
JEETIL
PATEL
Okay.
Looking
forward
to
hearing
to
about
it
PATRICK
PICHETTE And we
Great thank
will
you. Lets
go
the
next question
please.
OPERATOR HEATH
question
take
our next
question
from
Heath Terry
from
FBR
Capital
Markets.
TERRY
ANALYST FRIEDMAN
that
BILLINGS
used
RAIvISEY Great
tripled
thanks.
Not
to
overask
the
YouTube
sense of what
but you mentioned
YouTube
monetized
have
year-over-year.
Can you give us
Page
Event Brief of
10
Q2 2009
Google Earnings
Conference
Call
Final
FD Fair Disclosure
Wire
July
16
2009
Thursday
142-00 portion
rest that
is
10
currently
and can
you
talk
about
the
challenges
to
monetizing
the
non-partner
inventory
that
make
up
the
of those
views
JONATHAN HEATH
there
is
ROSENBERG
You
guess
that
dont understand YouTube
the
question views
if
with
respect to
percentage.
TERRY
but what
mentioned
are
had monetized was
just
had
tripled
year-over-year us sense
as to
am assuming maybe
not exact
portion
of those
that
that
non-monetized. looks like
curious
you could
give
percentages
portion
ERIC SCHMIDT
YouTube
people every
are
In general
we havent
content.
sort
of dissected
are
is
all
of the
numbers within
because accepting
YouTube.
that
is
The majority of
majority of what
15
views
are
not professional
It is
They
of what
user-generated submitted. gives
content
is
the
watching.
also
is
the
majority
YouTube
testament
more than
hours
of video
minute
here and
that
only
increasing of being
which
able to
you
the
of the
power
side
of YouTube.
HEATH
TERRY
And
It
in
terms
monetize
non-professional
to
of that
inventory matter
target
it is
ERIC SCHMIDT
majority There
is
has not been content
our focus. has
It
is
probably
possible
do
so but
It
the
is
fact
of the
to
that
the
of the too
non-professional
variation
relatively the
small number professional
of viewers.
difficult
accurately.
much
and
so forth
whereas
here and
remember
professional
here
just
doesnt
mean
It
big
studios.
also
means
from
smaller
studios
new
one.
entrants
It is
startups
who
are
professional can
tell
quality
quality
video
user-generated
easy
enough.
You
the
difference
and you can tell between the two.
professional
HEATH
PATRICK
questions.
TERRY
Okay
great.
Thanks.
PICHETTE
Thank
you. Lets
go
to
the
next question
please.
Probably
have
time
for
one
or
two more
OPERATOR
STEVE
few mix
quarters issues
Thank
you.
We
will
take
our next question
from
Steve
Weinstein
from
Pacific
Crest.
WEINSTEIN the TAC as
and seasonal and percent content
ANALYST
percentage
that to
PACIFIC CREST
the
SECURITIES
has been
Great
thank
you.
It
looks
like there are see
over
are
the
all
last
network
that.
partners
declining.
And
understand
that
sorts
of
issues
go
into
if
But
am wondering
of spread
that
given trend
the
momentum
if
you
to
seeing
behind
AdSense
being
for
display of the
ads
when
we
kind
out
we
can
continue
downward
TAC
paid out as
network.
PATRICK
relative to last
PICHETTE
year
there
So
will
answer massive
that.
Look
in
there
are
lot are
of mix issues
clearly
with
issues.
TAC.
So
When
on
the
arent these
if
swings
TAC.
There
mix
you look at AdSense and
partners
it
it
partner
networks
the
right obviously
that
you have
mix with
more of your smaller
partners
than
your
larger
will
influence
mix
way.
Clearly with people
to
is
Google
to
TAC
it
is
not
big
change
So there
to
but
is
it
reflects really basis
the
fact
that
we
shift
have
in
more partner way
shape
deals or
to
bring
Chrome
just the
bring
people
to
Toolbar.
no
big
just
tectonic at
any
form but what
you
see
effects
of these
mix on Thank
quarter
quarter
work.
STEVE
WEINSTEIN
PICHETTE And we
Okay.
you.
PATRICK
Thank
will
you.
We
will
take
one
more question
Jim Friedland
please.
OPERATOR
take
our final
question
from
from
Cowen
Company. Apps
to
FRIEDLAND
Two
to parts to that as
it.
ANALYST COWEN AND
$50 per user per
also offer are
CO.
Thanks.
Question
is
on Google view
on add
the
Enterprise
edition.
First you charge but could
to
year.
Over time
features
to so
there
not only
services
and continue
charge
level
talk
you
premium
the
that
you generate
that
more revenues hearing
Thanks.
per customer
And
second
you
enterprises
what
key
barriers
adoption
you
are
ERIC SCHMIDT
opportunity current
to
At
the
moment
of
course
we
are
very happy
time.
with have
the
$50
year model.
full just
We
sort
obviously of pursuing per product
have
the
the
put in additional think
at the
value-added
services
over
We
got our hands
to
opportunity.
over
to
time you can
entry in that
expect
we would
are
broaden
some
easy
of those
to
ideas
on
basis.
When
you
look
barriers
market they
actually
pretty
understand.
The customer them some
time to
has
large or
and
existing the
investment
that
in infrastructure
which new
is
relatively
highly computing.
specialized.
It
takes
is
convert
adapt
systems
they have
to
use the
web-based
This of course
Page
Event Brief of
11
Q2 2009
Google Earnings
Conference
Call
Final
FD Fair Disclosure
Wire
July
16
2009
Thursday
142-0011
the that
fundamental
the
narrative
of these
to
product
the
transitions transition.
and
that
is
why
they take
so
many
years to go
through.
It
is
not
customers
dont want
that there
is
make
The
category
issue
is
some feature
often
security
or
some unique
are
thing
that
they depend
specialized. that
on.
Examples
Access
to to
would
specific
be
in the
of security
significant
services
systems
relatively
highly systems
and often
access
to.
historically
but currently
not very
significant
database
they
still
need
have
Other
kinds
of things
which
are
just
tactical.
In other words
they just be
require that
some
amount of work
will
and over
time
we
will
knock
down some
for
of those
issues
some of those
ones.
would
conversions
people an
do
et
cetera
product.
et cetera.
We
focused
example
on
the
most common
in particular are
Outlook we have
Enterprise
now
launched
Outlook have
sync
The use of BlackBerries
support
that as part
and Those
the the
BlackBerry ones
that
Server. able to
We now
knock
very good
in the
BlackBerry
of our Apps.
priority
two of
are
we
have
been
down
past few
months
have
been high
but there
certainly
more.
JIM
FRIEDLAND
Great thank Thank
to
you. you. With this
are
PATRICK
listen to
PICHETTE
today. Just
we
will
close
the
call.
Let
me
thank
everybody
in
for
taking
the
time
to
our call
summarize
we
very
pleased
of
very good
quarter
what
is
stabilizing
but
difficult
economic would
So
environment.
also listening.
like
to
thank
Googlers be
able
for to
their talk will to
let
incredible
contribution people
close that the
in
Q2.
What
great progress
the
and thank
in
you
for
Jonathan
and
will
you
the
for the
go follow
please.
second
call
about
half an
hours
time.
Thanks
again
and
with
that
operator
call
OPERATOR
Thank
you.
And
this
concludes
todays
conference.
We
thank
you
for
your
participation.
Financial without obligation
to
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