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PCWorld.com caught up with Schmidt at a recent appearance at the Massachusetts Software and Internet Council.
PC World: Google states that it eschews pop-up advertising and traditional banner ads. Google doesn't accept paid placement in its search index, and the interface seems free of commercial ties. How do you make money?
Schmidt: Half of Google's revenue comes from selling text-based ads that are placed near search results and are related to the topic of the search. Another half of its revenues come from licensing its search technology to companies like Yahoo.
PC World: You've said Google gets 10,000 e-mail messages a week from companies asking how they can rank higher in Google search results...
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