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July 21, 2006

Conference Call Highlights

In their Q2 2006 earnings conference call, Google focused on talking about their effort to improve the quality of the ads, localize more products and increase the usage of Google product.

Some of the most interesting answers to investors' questions:

{ Google Checkout }

Studies show that about 63% of users abandon their shopping cart before they complete the buying process. Google Checkout significantly improves and simplifies this process, while also benefiting merchants by delivering higher click-throughs, conversions, and ROI.

Checkout is really a mechanism that allows people to more quickly buy products they want to buy. Roughly speaking, it remembers who you are, it provides a level of anonymity, and all of our testing indicates that people are much more likely to purchase from our advertisers if they have enabled Google Checkout.

{ Partnerships }

On the philosophy around our partnerships, we've typically given the majority of the value, if you will, to the advertiser, to the partner who brings the end user. So typically, in the structure we help drive, the majority of the revenue -- and the shares are pretty high -- goes to companies like AOL and Ask Jeeves and so forth. We get tremendous benefit, though from that, because then those advertisers are part of our overall advertiser network and so our property gets that benefit.

{ AdSense for radio }

We are in the process of introducing AdSense for radio, which is essentially the integration of the dMarc Console and management tools into our advertising network. The dMarc team itself is fully integrated. We're expanding it both in engineering and sales. We're also doing it worldwide, not just in the U.S. There's a number of very, very interesting deals being negotiated. They're on an integration schedule of about three months from now, so every week there are more milestones, and they're working very hard.

{ Mobile }

Omid Kordestani:
On mobile devices, the usage model is about finding information rather than browsing, and obviously, also the network of advertisers, which is very much global and strong. We can easily adapt that model to the mobile devices and make that network of advertisers flow into these different platforms.

Full transcript at Seeking Alpha.

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