Google Ads

Google Ads (formerly Google AdWords) is an online advertising platform developed by Google, where advertisers bid to display brief advertisements, service offerings, product listings, or videos to web users.^[3] It can place ads both in the results of search engines like Google Search (the Google Search Network) and on non-search websites, mobile apps, and videos.^[4][5] Services are offered under a pay-per-click (PPC) pricing model.

Google Ads is the main source of revenue for Alphabet Inc, contributing US$168.6 billion in 2020.In 2021, Google Ads generated US$257.6 billion.

History

Google launched AdWords in 2000.^[1] Initially, AdWords advertisers paid for the service monthly, and Google would set up and manage their campaigns. Google soon introduced the AdWords self-service portal to accommodate small businesses and those who wanted to manage their own campaigns. In 2005, Google started a campaign management service known as 'Jumpstart'.^[8]

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.^[9] Eventually, Google developed a custom distributed Relational database management system (RDBMS) known as Google F1 specifically for the needs of the Ad business. The interface offers Spreadsheet Editing, Search Query Reports, and conversion metrics.^[10]

In 2008, Google launched the Google Online Marketing Challenge,^[11] an in-class academic exercise for tertiary students.^[12] Over 8,000 students from 47 countries participated in the challenge in 2008, over 10,000 students from 58 countries took part in 2009, about 12,000 students in 2010, and almost 15,000 students from 70 countries in 2011. The challenge runs annually, roughly from January to June.

In April 2013, Google announced plans to add enhanced campaigns for AdWords to aid with campaign management catered to multiple-device users. The enhanced campaigns aimed to include advanced reports about users. This move was controversial among advertisers.^[13]

In July 2016, Google unveiled "Showcase Shopping" ads. With this format, retailers can choose to have a series of images that appear in search results related to various search queries and keywords.^[14]

In October 2017, Google revised AdWords' daily budget caps, which were previously set at a maximum of 120% of preset daily budgets, to a maximum of 200%. This change was rolled out on the same day it was announced, prompting criticism from paid search professionals. However, Google later clarified that this change would affect only short-term campaigns of less than 30 days and that for campaigns running more than 30 days, overage charges would be refunded.^[15]

On June 27, 2018, Google announced^[16] a rebranding of Google AdWords as Google Ads as of July 24, 2018.^[2][17]

In 2018, Bloomberg News reported that Google had paid millions of dollars to Mastercard for its users' credit card data for advertising purposes. The deal had not been publicly announced.^[18][19]

Functionality[edit]

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. Advertisers pay when users divert their browsing to click on the advertising copy.^[20] Adverts can be implemented locally, nationally, or internationally.

Google's text advertisements mimic what the average search result looks like on Google.^[21] Image ads can be one of the several different standardized sizes as designated by the Interactive Advertising Bureau (IAB). In May 2016, Google announced Expanded Text Ads, allowing 23% more text.

Besides the Google search engine, advertisers also have the option of enabling their ads to show on Google's partner networks, a list of sites including AOL search, Ask.com, and Netscape, who receive a portion of generated income.^[20]

In addition to external search engine marketing agencies and consultants, Google has its own in-house team of account managers.^[22]

Features[edit]

• The Keyword Planner provides data on Google searches and other resources to help plan advertising campaigns.^[23][24]
• AdWords Express (previously "Google Boost") is a feature aimed at small businesses that attempt to reduce the difficulty of managing ad campaigns by automatically managing keywords and ad placement.^[25][26][27]
• Google Ads Editor is a downloadable program that allows users to make bulk changes to ads and edit ads offline. It also allows users to see ad performance, like the dashboard.^{[28][non-primary source needed]}
• Google Ads Manager Accounts (previously "My Client Centre (MCC)") allows users to manage multiple accounts from one login and dashboard.^{[29][non-primary source needed]} This is most commonly used by Marketing and Advertising agencies who manage a large portfolio of client accounts.
• The Reach Planner allows users to forecast the reach and extent of their video ads across YouTube and Google video partners.^{[30][non-primary source needed]} The tool allows users to choose their audience, then recommends a combination of video ads that help reach the user's objectives, and see the reach of their ads.^{[31][non-primary source needed]}
• In addition to location and language targeting, advertisers can specify Internet Protocol (IP) addresses to be excluded. Advertisers can exclude up to 500 IP address ranges per campaign.^{[32][non-primary source needed]}
• Google Academy for Ads (previously "Google Partners", "Google AdWords Certification Program" and "Google AdWords Certification") provides a qualification to clients who pass a Google Ads Fundamentals exam and one Advanced AdWords exams on search, display, video, shopping, or mobile advertising, or Google Analytics.^{[33][34][35][non-primary source needed]} Google Partners must maintain a minimum spend threshold of US$10,000 over 90 days, with a higher spend threshold for Google Premier Partners.^{[36][non-primary source needed]}
• Placement-targeted advertisements (formerly Site-Targeted Advertisements) places adverts based on keywords, domain names, topics, and demographic targeting preferences entered by the advertiser. If domain names are targeted, Google also provides a list of related sites for placement. Advertisers bid on a cost-per-impression (CPI/CPM) or cost-per-click (CPC) basis for site targeting.^{[37][non-primary source needed]}
• Remarketing allows marketers to show advertisements to users that have previously visited their website, and allows marketers to create different audience lists based on the behavior of website visitors. Remarketing Lists for Search (RLSA) via Google Analytics became available in Google Ads in early June 2015, allowing for the use of standard GA remarketing lists to plan traditional text search ads.^{[38][non-primary source needed]} Dynamic remarketing can show past visitors the specific products or services they viewed.^{[39][non-primary source needed]} While common, some users may find overly overt use intrusive.^{[citation needed]}
• Ad extensions allow advertisers to show extra information with their ads, such as a business address, phone number, links to a web page or app, prices, or sales and promotions.^[40] Google Ads may also display automated extensions such as consumer ratings when the system predicts they will improve performance.^[41]
• Having granted more than $10 billion in free advertising for over 115,000 nonprofits across 51 countries since 2003, the Google Ad Grants contribute up to $10,000 per month of in-kind search advertising.^[42]
• Google Ads introduced Enhanced conversion to make conversion measurement more accurate^[43]
• Performance Max, a new type of campaign, is released to provide an opportunity to advertise businesses with a single campaign across Google channels such as YouTube, Display, Search, Discover, Gmail, and Maps, instead of having to create one for each channel.^[44]