Google AdWords – History and Functions

Google Advertising is a major source of revenue for Google. In 2012 Google earned revenue of USD 42.5 Billion from Google AdWords, their main advertising product. Google puts a restriction of 25 characters in the headline and 35 characters each in the next 2 lines for its text advertisements

History :-

Initially the founders of Google Larry Page and Sergery Brin were against the use of advertisement pop ups in search engines and even presented a research on this topic in 1998 while they were students at Stanford. The original idea of using Internet as a medium of advertising was that of Idealab’s Bill Gross. Google and Gross entered into negotiations where Google wanted to buy the idea from Gross but the deal could not be reached. After this Google launched AdWords in 2000 and the model was based on the creation of Bill Gross. This led to a suit being filed against Google and led to a settlement outside court.

·         The first model offered by Ad Works was the advertisers would pay a monthly amount to Google who would then manage the advertising campaign. Soon Google came up with self-service portal where businesses could manage their own campaign.

·         Jumpstart was launched by Google in 2005. A Google specialist was provided to companies to help them manage their advertising campaign online.

·         Google came up with Google Advertising Professional (GAP) Program. It certified those persons and companies who passed the exams and thus opened an avenue for such professionals as companies needed their help to manage their advertising campaign looking at the complex structure of AdWords and money involved

Features :-

Placement Target Advertisements – This feature was introduced in 2003. This allowed advertisers to use the control panel of AdWords to enter keywords, domain names, topics where they wanted to put their advertisement. Google identified the sites within their network where such ads could be placed.  Google charged these companies on cost-per-click basis. This allowed the companies to be more visible as they could advertise on the websites of related products e.g. a paint company could put on websites related to construction.

AdWords distribution – Advertising with AdWorks entitles the advertisement to be shown on www.google.com with the option of displaying the advertisements on the websites of partners of Google such as AOL search, Ask.com and Netscape.

Frequency Capping – This element allows the advertiser to put a limit on the number the advertisement is publicized to a particular user. This capping can be on monthly, weekly and daily basis.

 IP Address exclusion – This feature allows the advertiser to exclude the Internet Protocol (IP) addresses where they did not want their advertisement to be shown.

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