• Reuters, Tuesday, March 18, 2008 11:45 AM

Google CEO Eric Schmidt said that Google was "well positioned" to withstand an economic downturn because Google isn't dependent on any one particular market. "It's too early to say if there's (already) been any specific impact, but if there, were I don't think it would be much," Schmidt told reporters on Thursday. "There's not a lot of advertising for any one market over another," he said, adding that direct marketing, the category which online search belongs to, historically performs well during a recession. "There tends to be a flight in a global slowdown to higher quality advertising and higher quality advertising is determined by what sells," Schmidt said.

The Silicon Alley Insider (link: http://www.alleyinsider.com/2008/3/google_s_schmidt_s_secret_message_q1_fine) says that Schmidt's positive tone suggests that Google might be having a decent first quarter. If Google were having a terrible Q1, then the company CEO would have likely been more "circumspect" in his comments. Meanwhile, anecdotal evidence from SEM firms support the notion that Google's first quarter "is fine, not great."

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