The History Of PPC Advertising

1996 - 2014
ROIMareting!"o!n#

1996

The first do"$%ented and no&n PPC

advertising s'a"es (a$n"hed )y P(anet
Oasis on a *esto' a''(i"ation!

O'en Te+t Inde+ )egins se((ing PPC ads in

their sear"h res$(ts as ,Preferred -istings,!
O$t"ry and )ad '$)(i"ity ens$es!

.oog(e is started as a resear"h 'ro/e"t at

0tanford 1niversity &hi(st 2ahoo3 (a$n"hes
its IPO va($ing it at 4554 %i((ion!

1996

More than 400 %a/or )rands a"tive(y $sing

PPC advertising in sear"h res$(ts and
dire"tories &ith 'ri"es fi+ed for every
advertiser and ranging fro% 40!007 - 40!27
'er "(i"!

2ahoo3 t$rns do&n an offer to )$y .oog(e

for 41 %i((ion!

1998

In 9e)r$ary 1998 .oto!"o% esta)(ishes the

PPC a$"tion syste% &ith advertisers
)idding for ad 'osition on ey&ords and
ads raned )y )id va($e! :y %id 1998
advertisers &ere 'aying $' to a do((ar 'er
"(i"!

1999

.oTo!"o% (a$n"hes a too( set that a((o&s

advertisers a""ess to set rea( ti%e 'ay 'er
"(i" )id a%o$nts on individ$a( ey&ords!

2000

The on(ine advertising %aret "rashes &ith

the dot "o% )$))(e )$rsting "a$sing %any
)$sinesses to go )anr$'t; s"aring a&ay
advertisers!

.oog(e (a$n"hes .oog(e Ad&ords; a se(f-

servi"e advertising '(atfor% that a((o&s
advertisers to '(a"e ads on se(e"ted
ey&ords! Ad&ords is (a$n"hed &ith a f(at
CPM )idding %ode( &here advertisers 'ay
ea"h ti%e their ad is sho&n!

2001

.oTo!"o% rena%es itse(f Overt$re

0ervi"es and 'artners &ith 2ahoo3; M0<
and other sear"h engines syndi"ating
advertisers thro$gho$t the sites!

Overt$re earns 4288 %i((ion in 'ay 'er "(i"

ad reven$e &ith .oog(e,s ad reven$e fro%
'ay 'er i%'ression ads hitting 487 %i((ion!

2002

.oog(e Ad&ords introd$"es a ne& 'ay 'er

"(i" 'ay%ent o'tion for advertising on its
sear"h res$(ts! The ne& syste% a(so $ses
ad re(evan"e =%eas$red )y "(i" thro$gh
rate> for raning - %a+i%ising reven$e and
the sear"h e+'erien"e!

0ho''ing!"o% a((o&s e"o%%er"e sites to

)id 'er "(i" to have their 'rod$"ts a''ear
higher in the 'ri"e "o%'arison! Other
sho''ing "o%'arison net&ors fo((o& s$it!

2005

2ahoo3 a"?$ires Overt$re for 41!65 )i((ion

&hen its "ontra"t for ad syndi"ation "o%es
$' for rene&a(!

.oog(e (a$n"hes Adsense =and a"?$ires

A''(ied 0e%anti"s> &hi"h a((o&s on(ine
"ontent '$)(ishers to serve 'ay 'er "(i"
advertising targeted to the site "ontent and
a$dien"e &ith '$)(ishers re"eiving a share
of ea"h "(i" generated!

2004

.oog(e,s sear"h %aret share hits a 'ea

of 84!6@ of a(( sear"hes on the internet and
IPOs &ith a %aret va($e of 425!1 )i((ion
and ann$a(ised reven$es of 42!6 )i((ion
='redo%inant(y fro% PPC advertising!>

2007

.oog(e a"no&(edges iss$es &ith "(i"

fra$d in its 'ay 'er "(i" net&or and
i%'(e%ents %eas$res to dete"t and sto'
the fra$d o""$rring!

.oog(e re(eases .oog(e Ana(yti"s; a((o&ing

advertisers to )etter tra" the 'erfor%an"e
of their advertising "a%'aigns!

Adsense generates 4699 %i((ion in reven$e

in the 4
th
?$arter; 42@ of .oog(e,s reven$e!

2006

Mi"rosoft dro's Overt$re as its sear"h ad

'rovider and esta)(ishes its o&n se(f
servi"e 'ay 'er "(i" advertising '(atfor% -
adCenter!

9a"e)oo (a$n"hed advertising on its

&e)site 'artnering &ith Mi"rosoft adCenter
to syndi"ate )anners and s'onsored (ins!

.oog(e a"?$ires 2o$T$)e; the &or(ds

(argest on(ine video site for 41!67 )i((ion!

2006

9a"e)oo (a$n"hes its o&n advertising

'(atfor% a((o&ing advertisers to target
$sers )y de%ogra'hi"s and interests!

9et"h)a" and Criteo (a$n"h re%areting!

This a((o&s advertisers to s'e"ifi"a((y target
'eo'(e &ho have )een to their &e)site in
the 'ast thro$gh a range of net&ors!

:id %anage%ent soft&are so($tions s$"h

as Marin are (a$n"hed to a$to%ate PPC
)idding!

2008

.oog(e i%'roves the re(evan"e s"ore it

gives adverts =no&n as A$a(ity 0"ore> to
i%'rove the sear"h e+'erien"e and
%a+i%ise the reven$e it %aes 'er sear"h!

-inedIn (a$n"hes *ire"tAds a((o&ing

advertisers to target $sers of their &e)site
)y de%ogra'hi"s; ind$stry or /o) tit(e!

A range of ne& PPC net&ors start $'

in"($ding ne& o'tions s$"h as 0ho''ing
Co%'arison net&ors!

2009

Bith internet $sage on

%o)i(e devi"es
in"reasing; the %a/or
PPC net&ors start to
fo"$s their efforts on
%o)i(e advertising
so($tions &ith .oog(e
a"?$iring AdMo); a
%o)i(e advertising
start$'; for 4670 %i((ion!

2010

Mi"rosoft sear"h re(a$n"hes as :ing and

tea%s $' &ith 2ahoo3 to syndi"ate their ads
on the 2ahoo net&or in a "o%)ined effort
to "o%)at .oog(e,s gro&ing sear"h share!

.oog(e Ad&ords $nvei(s a host of ne&

advertising o'tions in"($ding Prod$"t
-isting Ads and Re%areting!

Content %areting via 'ay 'er "(i"

'(atfor%s s$"h as O$t)rain gro&s in
'o'$(arity for ne&s o$t(ets and '$)(ishers!

2011

9a"e)oo (a$n"hes s'onsored stories

&hi"h '$((s $sers, i%ages and na%es to
'ro%ote advertisers 'osts to their friends!
This (ater (ed to a (a&s$it and re%ova( of
the advertising o'tion!

Cost 'er "(i"s on a(( net&ors "ontin$e to

rise &ith ,ins$ran"e, ey&ords on .oog(e
Ad&ords averaging 474!91 'er "(i" in the
1nited 0tates fo((o&ed )y ,(oans, ey&ords
&ith 444!28 'er "(i"!

2012

T&itter ro((s o$t a se(f-servi"e advertising

'(atfor% for 10 advertisers and &i(( add
other "o$ntries in the f$t$re!

.oog(e s$r'asses 470 )i((ion in reven$e for

the first ti%e &ith 97@ of reven$e derived
fro% advertising!

2015

.oog(e (a$n"hes Cnhan"ed Ca%'aigns

&hi"h (i%it the a)i(ity to t$rn off "ertain
devi"es!

Pay 'er "(i" o'tions for eCo%%er"e

&e)sites in"reases &ith *yna%i"
Re%areting - the a)i(ity to re%aret si%i(ar
'rod$"ts to &hat the $ser has /$st vie&ed!

9a"e)oo (a$n"hes its o&n re%areting

so($tion that "an )e atta"hed to &e)sites or
%o)i(e a''s!

2014

.oog(e (a$n"hes the a)i(ity to tra" 'hone

"a((s dire"t(y fro% ads and fro% &e)sites
a((o&ing )etter o'ti%isation of ads and
ey&ords!

Bith 'ay 'er "(i" advertising "osts rising;

"o%'anies are in"reasing(y t$rning to
"onversion rate o'ti%isation and the $se of
(anding 'ages to %a+i%ise 'erfor%an"e!

Advertising s'end on PPC "ontin$es to

gro& &ith %o)i(e s'end $' 98@ 2o2!

Thans 9or Reading
Be ho'e yo$ en/oyed (earning a)o$t the
history of 'ay 'er "(i" advertising!
Be have a h$ge range of other arti"(es
a)o$t 'ay 'er "(i" advertising;
"he" the% o$t hereD
&&&!roi%areting!"o!n#