GOOGLE ADS
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.[13][14][15]
Functionality
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Google Ads’ system is based partly on cookies and partly on keywords determined by advertisers. Google uses these characteristics to place advertising copy on pages that they think might be relevant. In 2023, Google introduced Topics API, which allows targeting ads based on browsing history stored in browser, to Google Chrome.[16][17] Advertisers pay when users divert their browsing to click on the advertising copy.[18] Adverts can be implemented locally, nationally, or internationally.
Google’s text advertisements mimic what the average search result looks like on Google.[19] Offering text-only search ads initially, Google unveiled “Showcase Shopping” ads in 2016. With this format, retailers can choose to have a series of product images that appear in search results related to various search queries and keywords.[20] In May 2016, Google announced Expanded Text Ads, allowing 23% more text.[21] Image ads in the display network can be one of the several different standardized sizes as designated by the Interactive Advertising Bureau (IAB).
Besides the Google search engine, advertisers also have the option of enabling their ads to show on Google’s partner network,[18] members of which receive a portion of the generated income.
In 2024, Google Ads introduced AI-powered tools, including the “Ads Power Pair” of Search and Performance Max, designed to improve campaign efficiency across Google channels. These tools leverage first-party data, machine learning, and automated asset creation to enhance bidding, targeting, and audience reach.[22]