Silicon - 4:59 pm on Sep 15, 2010 (gmt 0)

Schmidt told reporters: "We're trying to take Google's core products and add a social component." "If you think about it, it's obvious," he said. "With your permission, knowing more about who your friends are, we can provide more tailored recommendations. Search quality can get better."

What this says to me is Google is going to try to do what marketers have wanted to do for years. They are going to marry ad profits and recommendations from your friends. The ultimate CTR and Conversion for the advertiser and the ultimate CPC for G all while giving the user "what they want". Very tricky tho...