Google, Inc. (NASDAQ: GOOG) continues to be a high-flying stock, closing yesterday at $641.68. While some think Google will reach $1,000 per share in the near future, some aren't sure. With "growing signs that the U.S. economy may be headed for a downturn," can Google keep up its magnificent pace as a growth stock and a company known for ever-growing quarterly revenues?

Google's business model could actually be helped by an economic downturn. The company is in a position to weather conditions that would make many industries swoon, and that's by design. By being a virtual company, you can imagine the layers of insulation Google has from nastiness in the economy. No physical inventory, no product cycles, no commodities, etc. Must be nice.

But if advertisers lessen their spending during times of financial crises, Google could get hit. Its network completely relies on advertisers and little else at this time. This is where the difference between graphic and text ads show up -- those Google text ads are displayed while customers are actively engaged (at least, partially) in searching for a product or service.

Though Google's graphic ads are threatening the revenue base of television networks and other types of media, advertisers still want to value for their money. If advertisers start to think Google ads are losing their effectiveness,
the stock is not headed to $1,000 anytime soon.

According to a story in The Guardian [registration required], Google (NASDAQ: GOOG) is testing ways of incorporating ads (and bringing in ad revenues) into YouTube videos. The head of Google's European operations, Patrick Walker, said that the company was testing the concept of offering people and companies that post videos half of the ad revenues, if they agree to allow a 30-second spot to run before the video.

He said the company is looking for solutions that don't ruin the viewer's experience. IMHO, thirty seconds isn't much to tolerate for a half-hour show, but might be a major hurdle for a two-minute clip.

Howard Lindzon of Wallstrip earlier this week told Variety much the same thing, but suggested the program could be rolled out as early as next week. Apparently, Google has been testing the concept on their Google Video site.

Walker went on to say that Google expects the YouTube ad stream to start bringing in "real money" in 2008. He also expects that more professional content producers will be eager to post their product once a shared revenue stream is in place. Spanish, German, and English television networks have recently agreed to create branded YouTube promotional channels.