If you have ever performed a search on Google, then you are familiar with Google Ads. This is a brief story of how the Pay Per Click industry evolved over the years.
Pay Per Click (PPC) advertising first emerged in 1996 with the launch of Planet Oasis, one of the earliest PPC platforms. The concept allowed advertisers to bid on keywords and pay only when a user clicked on their ad. This made PPC an attractive option for small businesses with limited marketing budgets.
In 1998, Overture (then known as GoTo.com) launched its PPC platform, which quickly grew to dominate the market. Overture's model involved an auction-based system where advertisers bid on keywords. This approach was later challenged in a legal case, where Yahoo sued Google for trademark infringement over its AdWords program. The court ultimately ruled in favor of Google, establishing important precedents for the PPC industry.
"I distinctly remember using Overture when it was first introduced to obtain traffic for several clients. Believe it or not, the cost-per-click was only $0.10 back then."
- Don Johnson
In 2000, Google entered the PPC space with its AdWords (Now called Google Ads) platform, which would go on to become the dominant force in the industry. AdWords used an automated auction system to determine ad placement and pricing, making it easier for businesses to manage their PPC campaigns.
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As PPC advertising grew in popularity, the need for more sophisticated campaign management tools became apparent. This led to the development of a range of third-party PPC management platforms, such as Marin Software (launched in 2006), Kenshoo (launched in 2006), and Acquisio (launched in 2002). These tools allowed advertisers to automate many of the manual tasks associated with PPC, such as bid optimization, budget management, and reporting.
The introduction of these automated tools, combined with the continued growth and dominance of AdWords, helped to drive the widespread adoption of PPC advertising among businesses of all sizes.
In the 2010s, the PPC industry underwent a significant transformation with the introduction of artificial intelligence (AI) and machine learning (ML) technologies. These advanced algorithms allowed PPC platforms to automate an even greater range of tasks, from keyword research and ad copy generation to bid optimization and budget allocation.
Google's introduction of Smart Bidding in AdWords in 2016, which uses machine learning to automatically adjust bids based on a variety of signals, was a major milestone in the AI-driven evolution of PPC. Other platforms, such as Microsoft Ads (launched in 2006) and Amazon Advertising (launched in 2012), have also incorporated AI-powered features to help advertisers optimize their campaigns.
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In 2021, Google Ads introduced Performance Max (PMax), a new campaign type that utilizes advanced AI and automation to optimize ad delivery across all of Google's advertising channels, including Search, Display, YouTube, and more. Performance Max allows advertisers to set high-level campaign goals and budgets, and the AI system then automatically manages the complex task of bidding, ad creation, and channel optimization to achieve those goals. This has further reduced the manual effort required to manage PPC campaigns, while also driving improved performance through intelligent, data-driven decision making.
"When I was first introduced to the concept of PMax by a Google representative, I was hesitant to relinquish manual control of campaigns. I thought there was no way a machine could optimize a campaign as well as our team could. But, after several years of working with it, I have certainly changed my mind."
- Don Johnson
Today, the PPC industry is heavily reliant on AI and ML technologies, with many of the day-to-day tasks of campaign management being handled automatically. This has allowed advertisers to focus more on strategy and creativity, while the platforms handle the complex optimization and decision-making processes.
The PPC industry has come a long way since its inception in 1996. From manual, labor-intensive campaigns to the AI-powered, automated platforms of today, the evolution of PPC has been driven by the need for more efficient and effective advertising solutions. As technology continues to advance, it is likely that the role of AI and ML in PPC will only continue to grow, further transforming the way businesses approach online advertising.
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