Google Ads, formerly known as Google Adwords, is an online advertising platform developed by Google, where advertisers bid to display brief advertisements, service offerings, product listings, and videos to web users.[5] It can place ads in the results of search engines like Google Search (the Google Search Network), mobile apps, videos, and on non-search websites.[6][7] Services are offered under a pay-per-click (PPC) pricing model, and a cost-per-view (CPV) pricing model.
History
Google launched AdWords in the year 2000.[1] Initially, Google itself would set up and manage advertisers’ campaigns. Google then introduced a self-service AdWords portal for small businesses that wanted to manage their own campaigns.
In 2005, Google started a campaign management service known as “Jumpstart”.[8]
In 2007, Google acquired DoubleClick for $3.1 billion. The acquisition was strategically important for Google, providing access to DoubleClick’s advanced ad-serving technology and established industry relationships.[9] This deal, while “transforming Google into a powerhouse”, later attracted antitrust scrutiny, raising questions about its impact on market competition and digital advertising dominance.[10]
In January of 2007 Google purchased the radio advertising company dMarc Broadcasting.[citation needed]
In 2008, Google launched the Google Online Marketing Challenge,[11] an in-class academic exercise for tertiary students.[12]
Google retired the DoubleClick and AdWords brands in 2018 to simplify entry points for advertisers and ad sellers. The core product was renamed Google Ads, providing access to inventory on Google Search, its YouTube video service, the Google Play app store, and AdSense website publisher partners.
Cost
Every time a user conducts a search on Google, Google Ads runs an auction in real time to determine which search ads are displayed on the search results page as well as the ad’s position.[34] The cost of a Google Ads campaign therefore depends on a variety of factors, including the maximum amount an advertiser is willing to pay-per-click of the keyword, and the quality score of the ad (based on its relevance and click frequency and ad extensions).
Although an advanced bidding strategy can be used to automatically reach a predefined Cost per action (CPA), this should not be confused with a fixed CPA pricing model.
Technology
The AdWords system was initially implemented on top of the MySQL database engine. After the system had been launched, management decided to use Oracle instead but was eventually reverted to MySQL after the system became much slower.[47] Eventually, Google developed a custom distributed Relational database (RD) known as Google Spanner specifically for the needs of the ad business. The interface offers Spreadsheet Editing, Search Query Reports, and conversion metrics
. Ad Types
- Search Ads: These are text-based ads that appear in Google Search results when someone searches for a relevant keyword. These ads are usually shown at the top or bottom of the search page.
- Display Ads: These are image or banner ads that appear on websites, apps, and videos that are part of the Google Display Network (GDN). GDN reaches over 90% of internet users worldwide.
- Video Ads: These are video ads that appear on YouTube and across Google’s Display Network.
- Shopping Ads: These ads appear when someone searches for a product on Google. They typically include an image, product name, price, and store name.
- App Ads: Ads that promote mobile apps across Google’s network, including Google Search, YouTube, and the Google Play Store.
Privacy & User Control:
- Data Compliance: Google’s platforms adhere to global data privacy laws (e.g., GDPR).
- Personalization Control: Users can adjust their ad preferences or opt-out of personalized ads.