Google, Extending into YourSpace

Asked how Google might look in five years’ time, Mr Schmidt said: “We are very early in the total information we have within Google. The algorithms will get better and we will get better at personalisation.

“The goal is to enable Google users to be able to ask the question such as ‘What shall I do tomorrow?’ and ‘What job shall I take?’ ”

The race to accumulate the most comprehensive database of individual information has become the new battleground for search engines as it will allow the industry to offer far more personalised advertisements. These are the holy grail for the search industry, as such advertising would command higher rates.

Mr Schmidt told journalists in London: “We cannot even answer the most basic questions because we don’t know enough about you. That is the most important aspect of Google’s expansion.”

He said Google’s newly relaunched iGoogle service, which allows users to personalise their own Google search page and publish their own content, would be a key feature.

Another service, Google personalised search, launched two years ago, allows users to give Google permission to store their web-surfing history, what they have searched and clicked on, and use this to create more personalised search results for them. Another service under development is Google Recommendations – where the search suggests products and services the user might like, based on their already established preferences. Google does not sell advertising against these services yet, but could in time use them to display more targeted ads to people.