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The Goto. com siteitself was an internet search engine crossed with a directory of classes andindustries. When users clicked a specific class or searched for anything,applicable advertisements were displayed to them and advertisers were charged per click. Instead of a hard and fast fee, this allowed advertisers to bid in opposition t one another inorder to say the no 1 spot.

Since there could only be one top spot percategory or search, Goto. com had the innovative idea of letting the marketdecide how much they wanted to pay. This allowed larger businesses to cost outsmaller competition and opened an entire new world of competitive PPC recommendations. Near the tip of theyear 2000, Google was receiving over 18 million searches per day. With so manysearches, Google decided it was time to monetize its search engine withunobtrusive text adverts on the side in their search consequences.


With so manyother se’s at the time working their very own PPC ads, Google had lots ofother businesses to compete towards. Their new advertisements system was called“AdWords” and launched to the delight of advertisers. Within the first fewmonths, Google AdWords had over 350 advertisers register to use their PPCservice. Little did they know the way successful it’ll be. In order to expandtheir enterprise and online advertising model, Overture teamed up with severalother se’s corresponding to Yahoo and MSN.

This partnership allowed Overtureto monetize other se’s results without them having to create theirown advertising system. These deals with se’s significantly benefited bothparties and helped Yahoo boost their revenuesignificantly. For Google, this was an enormous drawback. To put things intoperspective, by the end of 2001 Google had earned $85 million from PPC advertisingwhile Overture GoTo. com had earned $288 million. GoTo’s company model of PPCand white labelling it to other se’s was beginning to become a hugesuccess.

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