Google will not put ads on its homepage because users prefer it the way it is, chief executive of the search engine Eric Schmidt has said.

Mr Schmidt made the assertion in an appearance on Mad Money with Jim Cramer, a US television show.

He said that while Google would be able to make billions of dollars by placing ads on its front page, the company does not want to do this.

In another comment, Mr Schmidt revealed that he believed Google will make more money from mobile ads than the traditional desktop models that are the lifeblood of the organisation.

He said: "You carry your phone everywhere – it knows all about you. We can do a very, very targeted ad. Over time, we will make more money for mobile advertising."

Google now accounts for more than seven in ten US searches, according to a recent piece of research from Hitwise.

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