In a recent interview, CEO of Google Eric Schmidt recently admitted the firm still hasn't figured out a way to make money from YouTube. He's also discussed the company's supposed web domination and its moral positioning.

Speaking to a New Yorker journalist at a Syracuse University event, he said Google should be able to make "significant amounts of money" from the video sharing site considering it has such a huge audience. He also pointed out that Google is fortunate enough to have the time and money to invest in the site without an immediate return.

With 129 million viewers a month, an effective advertising method on YouTube would be highly lucrative. Google's already tried running advertising at the start and end of clips, and even dividing the screen up to run ads during the clips themselves, but neither scheme has worked particularly well. Now Schmidt says the firm is planning an entirely new style of advert, but won't go into details.

Perhaps surprisingly, he revealed that cell phone advertising is probably going to wind up the most lucrative division. That seems to be because of technology that tracks a user's location and then delivers ads which are particularly relevant -- for example, promoting a local restaurant or shopping mall. These tend to be more effective and therefore command higher rates from advertisers. (Source: reuters.com)

Schmidt also said Google doesn't like the way many compare its dominance of the search market to that of Microsoft software. He argued that while Google is number one in text-based adverts online, Yahoo is the market leader in display advertising. (Source: timesonline.co.uk)

He also touched on Google's famous "Don't Be Evil" philosophy, suggesting it's meant to make staff think about ethics rather than being an outright moral stance: "We don't have an 'Evilmeter' we can sort of apply...what is good, and what is evil."