Google Ads
Other namesGoogle AdWords
Developer(s)Google
Initial releaseOctober 23, 2000 (2000-10-23)[1]
TypeOnline advertising
Websiteads.google.com

Google Ads is an online advertising platform developed by Google, where advertisers bid to display brief advertisements, service offerings, product listings, and videos to web users.[2] 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.[3][4] Services are offered under a pay-per-click (PPC) pricing model.

Google Ads is the main source of revenue for Alphabet Inc., contributing US$224.47 billion in revenue in 2022.

History

Former logo of the service

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'.[5]

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.[6] This deal, while 'transforming Google into a powerhouse', later attracted antitrust scrutiny, raising questions about its impact on market competition and digital advertising dominance.[7]

In 2008, Google launched the Google Online Marketing Challenge,[8] an in-class academic exercise for tertiary students.[9]

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.[10][11][12]

Functionality

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.[13][14] Advertisers pay when users divert their browsing to click on the advertising copy.[15] Adverts can be implemented locally, nationally, or internationally.

Google's text advertisements mimic what the average search result looks like on Google.[16] 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.[17] In May 2016, Google announced Expanded Text Ads, allowing 23% more text.[18] 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,[15] members of which receive a portion of the generated income.

Restrictions on ad content

The "Family status" of an ad ("family safe", "non-family safe", or "adult") is set by a Google reviewer and indicates what "audiences the ad and website are appropriate for". This will change at what time, on which page, and in which country an ad can appear.[19]

As of December 2010, Google AdWords decreased restrictions on sales of hard alcohol.[20] It now allows ads that promote the sale of hard alcohol and liquor. This is an extension of a policy change that was made in December 2008, which permitted ads that promote the branding of hard alcohol and liquor.

Some keywords, such as those related to hacking, are not allowed at all.[21] From June 2007, Google banned AdWords adverts for student essay-writing services, a move which received positive feedback from universities.[22] Google has a variety of specific keywords and categories that it prohibits that vary by type and country.[23] For example, use of keywords for alcohol related products are prohibited in Thailand[24] and Turkey;[25] keywords for gambling and casinos are prohibited in Poland;[26] keywords for abortion services are prohibited in Russia and Ukraine;[27] and keywords for adult related services or products are prohibited worldwide as of June 2014.[28][29]

In March 2020, at the beginning of the Coronavirus crisis, Google blocked all face masks keywords from being eligible for ad targeting as part of a policy to prevent companies from attempting to capitalize on the pandemic.[30]

Cost

Every time a user conducts a search on Google, Google Ads runs an auction in real time determines which search ads are displayed on the search results page as well as the ad's position.[31] 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.[32]

Conversion tracking

In addition to tracking clicks, Google Ads provides advertisers an ability to track and report other conversions that happen after the click such as purchases, sign ups or calls.[33] Conversion tracking is implemented by sending an identifier to the advertiser's website as a URL parameter, which is then used by advertiser to send conversions to Google Ads, allowing Google Ads to trace conversion back to the original click for reporting. Google also allows advertisers to install a pixel on their website that sends conversions to the Adwords account. This allows advertisers to target their ads to drive conversions more effectively. For most traffic, Google sends a unique identifier for each click (in a gclid parameter), allowing to determine source of conversion precisely. To comply with tracking restrictions on Apple devices, anonymized identifiers that aren't associated with specific person are used (called wbraid and gbraid). Google Ads provides ability to report many of such anonymous conversions by using "modeled conversions" that combine additional customer details to deduce, which user to attribute the conversion to.[34][35]

Google Ads can be integrated with Google Analytics 4 (GA4),[36] which can improve conversion tracking effectiveness. This integration allows for a more comprehensive understanding of user interactions across different platforms and devices.[37]

Google Ads introduced enhanced conversions to make conversion measurement more accurate.[38]

In 2018, Bloomberg News reported that Google had paid millions of dollars to Mastercard for its users' credit card data for offline conversion tracking purposes. The deal had not been publicly announced.[39][40]

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.[41] 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.[42]

Lawsuits

Google Ads have been the subject of lawsuits relating to Trademark Law (Google, Inc. v. American Blind & Wallpaper Factory, Inc. and Rescuecom Corp. v. Google Inc.), fraud (Goddard v. Google, Inc.), and click fraud.

Overture Services, Inc. sued Google for patent infringement in April 2002 in relation to the AdWords service. The suit was settled in 2004 after Yahoo! acquired Overture; Google agreed to issue 2.7 million shares of common stock to Yahoo! in exchange for a perpetual license under the patent.[43]

In 2006, Google settled a click fraud lawsuit for US$90 million.[44]

In May 2011, Google cancelled the AdWords advertisement purchased by a Dublin sex worker rights group named "Turn Off the Blue Light" (TOBL),[45] claiming that it represented an "egregious violation" of company ad policy by "selling adult sexual services". However, TOBL is a nonprofit campaign for sex worker rights and is not advertising or selling adult sexual services.[46] After TOBL members held a protest outside Google's European headquarters in Dublin and sent in written complaints, Google reviewed the group's website. Google found the website content to be advocating a political position and restored the AdWords advertisement.[47]

In June 2012, Google rejected the Australian Sex Party's ads for AdWords and sponsored search results for the July 12 by-election for the state seat of Melbourne, saying the Australian Sex Party breached its rules which prevent solicitation of donations by a website that did not display tax exempt status. Although the Australian Sex Party amended its website to display tax deductibility information, Google continued to ban the ads. The ads were reinstated on election eve after it was reported in the media that the Australian Sex Party was considering suing Google. On September 13, 2012, the Australian Sex Party lodged formal complaints against Google with the US Department of Justice and the Australian competition watchdog, accusing Google of "unlawful interference in the conduct of a state election in Victoria with corrupt intent" in violation of the Foreign Corrupt Practices Act.[48]

In December 2019, France fined Google €150 million for advertiser suspensions on Google Ads, arguing it had "abused its dominant position by adopting opaque and difficult to understand rules" which it was then free to "interpret and modify" at its own discretion.[49]

In early 2022, Google suspended all ad sales in Russia in response to the ongoing invasion of Ukraine.[50] Over 1,000 Russian businesses that had purchased pre-paid ads, which were neither delivered nor refunded, joined the bankruptcy proceedings of the Russian Google subsidiary.[51][52]

Controversies

Trademarked keywords

Google has come under fire for allowing AdWords advertisers to bid on trademarked keywords.[53] In 2004, Google started allowing advertisers to bid on a wide variety of search terms in the US and Canada, including trademarks of their competitors[54] and in May 2008 expanded this policy to the UK and Ireland. Until 2023, advertisers were restricted from using other companies' trademarks in their advertisement text if the trademark has been registered with Advertising Legal Support team.[55]

In March 2010, Google was involved with a trademark infringement case involving three French companies that own Louis Vuitton trademarks.[56] The lawsuit concerned if Google was responsible for advertisers purchasing keywords that violate trademark infringement. Ultimately, the Court of Justice of the European Union ruled that Google AdWords were "not a breach of EU trademark law, but that the content of some advertisements that are linked by Google keywords may well be in breach depending upon the particular facts of the case."[57] Additionally, in some American jurisdictions, the use of a person's name as a keyword for advertising or trade purposes without the person's consent[58] has raised Right to Privacy concerns.[59]

In 2013, the Tenth Circuit Court of Appeals held in 1-800 Contacts, Inc. v. Lens.com, Inc. that online contact lens seller Lens.com did not commit trademark infringement when it purchased AdWords and other search advertisements using competitor 1-800 Contacts' federally registered 1800 CONTACTS trademark as a keyword.[60] In August 2016, the Federal Trade Commission filed an administrative complaint against 1-800 Contacts alleging that its search advertising trademark enforcement practices have unreasonably restrained competition in violation of the FTC Act. 1-800 Contacts has denied all wrongdoing and is scheduled to appear before an FTC administrative law judge in April 2017.[61]

IT support ban

In 2018, Google implemented a policy change that restricts the advertising of consumer technical support, including services related to troubleshooting, security, virus removal, internet connectivity, online accounts (such as password resets or login support), or software installation",[62][63] Google's Director of Global Product Policy, David Graff stated that the policy was intended to "address abuse" and "fraudulent activity" from third-party technical support providers, and that a verification program for legitimate providers would be rolled out "in the coming months".[64] This is yet to manifest, resulting in an effective ban on all IT support and repair related services on the Google Ads platform.[65] Commentators have expressed concerns that this is an attempt by Google to stifle consumers' right to repair electronic devices.[65][66]

Use by fossil fuel companies for greenwashing

Fossil fuel companies, funders and public relations agencies including ExxonMobil, Shell, Aramco, McKinsey, and Goldman Sachs are among the largest customers of Google Ads. One in five Google Ads for climate-related terms (e.g. net zero, carbon storage, carbon capture and energy transition) were paid by fossil fuel companies. A study by The Guardian and InfluenceMap found that Shell's ads appeared on 86% of searches for "net zero". Over half of users in a 2020 survey could not tell the difference between a normal Google result and a Google Ad.[67] One of the study's authors, InfluenceMap stated "Google is letting groups with a vested interest in the continued use of fossil fuels pay to influence the resources people receive when they are trying to educate themselves. The oil and gas sector has moved away from contesting the science of climate change and now instead seeks to influence public discussions about decarbonization in its favor."[67]

Anti-abortion clinics

A report conducted by the Tech Transparency Project found that women from low-income areas in US cities are more likely to be targeted by anti-abortion crisis pregnancy centers than women in wealthier areas of the city. Many of these crisis centers have portrayed themselves as abortion clinics while advocating anti-abortion measures for pregnant women.[68]

The research was conducted in Atlanta, Miami, and Phoenix with women from three different income brackets, using the phrases "abortion clinic near me" and "I want an abortion." According to the results, Phoenix showed a 16% increase in crisis center recommendations from low to middle income, while there was a 49% difference when compared to high-income areas.[69][70]

See also

References

  1. 1 2 "Google Launches Self-Service Advertising Program". Google. 2000-10-23. Retrieved 2018-07-25.
  2. ↑ "How Google AdWords Works". Google AdWords.
  3. ↑ "About targeting for Display Network campaigns". Google Inc. Retrieved 2020-04-11.
  4. ↑ "About the Google Search Network". Google Inc. Retrieved 2020-04-11.
  5. ↑ "What is Jumpstart?". Archived from the original on 2006-04-29.
  6. ↑ Story, Louise; Helft, Miguel. "Google Buys DoubleClick for $3.1 Billion". The New York Times. Archived from the original on 2023-04-22.
  7. ↑ Lohr, Steve (2020-09-21). "This Deal Helped Turn Google Into an Ad Powerhouse. Is That a Problem?". The New York Times. Archived from the original on 2021-01-29.
  8. ↑ "Google Online Marketing Challenge". www.google.com.
  9. ↑ Rosso, Mark; McClelland, Marilyn; Jansen, Bernard (Jim); Fleming, Sundar (April 2009), "Using Google AdWords in the MBA MIS Course" (PDF), Journal of Information Systems Education, 20 (1): 41–49, archived from the original (PDF) on 2010-03-05
  10. ↑ "Introducing simpler brands and solutions for advertisers and publishers". 2018-06-27. Retrieved 2018-07-02.
  11. ↑ "Google AdWords Will Soon Become Google Ads". Retrieved 2018-07-02.
  12. ↑ "Introducing simpler brands and solutions for advertisers and publishers". The Keyword. 2018-06-27. Retrieved 2018-07-25.
  13. ↑ Claburn, Thomas. "Google Chrome pushes browser history-based ad targeting". www.theregister.com.
  14. ↑ Taylor, Dan (2023-04-18). "Results from Google Ads' interest-based advertising testing". Google.
  15. 1 2 "Display Ads, Video Ads, Search Ads & App Ads - Google AdWords – Google". adwords.google.com. Retrieved 2017-01-06.
  16. ↑ "About text ads - Google Ads Help". support.google.com. Retrieved 2019-04-04.
  17. ↑ Marty Swant (2016-07-12). "Google Launches Smarter, More Visual Ads Timed for Holiday Shopping". Adweek. Retrieved 2016-07-22.
  18. ↑ Marvin, Ginny (2016-07-26). "Google expanded text ads are live, and device bidding & responsive ads for native roll out". Search Engine Land. Retrieved 2022-12-12.
  19. ↑ "Family status: Definition - Google Ads Help". support.google.com. Retrieved 2019-10-09.
  20. ↑ "Change to the AdWords advertising policy on alcohol". Archived from the original on 2012-03-12.
  21. ↑ Blanckenberg, Nicole (2019-09-16). "Google Ads for eCommerce". Storeya. Retrieved 2022-12-12.
  22. ↑ "Google bans essay writing adverts". BBC News. 2007-05-22. Archived from the original on 2008-06-24. Retrieved 2008-05-23.
  23. ↑ "Upcoming and recent changes - Advertising Policies Help". Google. Retrieved 2014-06-09.
  24. ↑ "Alcohol - Thailand". Google. 2014. Retrieved 2014-07-12.
  25. ↑ "Alcohol - Turkey". Google. 2014. Retrieved 2014-07-12.
  26. ↑ "Casinos and gambling - Poland". Google. 2014. Retrieved 2014-07-12.
  27. ↑ "Abortion - Russia and Ukraine". Google. 2014. Retrieved 2014-07-12.
  28. ↑ "Adult content". Google. 2014. Retrieved 2014-07-12.
  29. ↑ "Google Announces Impending Anti-Porn Advertising Policies". AVN.com. Adult Video News. Retrieved 2014-06-09.
  30. ↑ "Google bans all ads for medical face masks amid coronavirus outbreak". www.cnbc.com. 2020-03-11. Retrieved 2020-03-11.
  31. ↑ "How costs are calculated in AdWords - AdWords Help". support.google.com. Retrieved 2017-05-31.
  32. ↑ "About Target CPA bidding - AdWords Help". Retrieved 2018-06-15.
  33. ↑ "About conversion tracking". Google Ads Help. Retrieved 2022-06-26.
  34. ↑ "Google Ads Conversion Tracking Post IOS 14". Able CDP. November 2021. Archived from the original on 2021-12-31. Retrieved 2022-06-26.
  35. ↑ "About modeled online conversions". Google Ads Help. Retrieved 2022-06-26.
  36. ↑ "Integrating Google Ads with Google Analytics 4 (GA4)". Google Ads Help. Retrieved 2023-12-09.
  37. ↑ "Google Analytics 4 benefits and features to drive App campaign performance". Google Ads Help. Retrieved 2023-12-10.
  38. ↑ "Google Ads Has A New Way To Measure Offline Leads". Search Engine Journal. 2022-03-04. Retrieved 2022-03-18.
  39. ↑ Liao, Shannon (2018-08-30). "Google reportedly bought Mastercard data to link online ads with offline purchases". The Verge.
  40. ↑ "Google and Mastercard Cut a Secret Ad Deal to Track Retail Sales". Bloomberg.com. 2018-08-30.
  41. ↑ Lembo, Phil (2007-05-30). "eldapo: Let's get a real database". Eldapo.blogspot.com. Archived from the original on 2012-03-05. Retrieved 2013-06-14.
  42. ↑ Shute, Jeff; Vingralek, Radek; Samwel, Bart (2013). "F1: A Distributed SQL Database That Scales". Google, Inc. *University of Wisconsin-Madison.
  43. ↑ Google, Yahoo bury the legal hatchet, Stefanie Olsen, CNET News.com, August 9, 2004
  44. ↑ "Google settles advertising suit for $90 million". NBC News. Associated Press. 2006-03-08.
  45. ↑ Turn Off the Blue Light, website Archived June 2, 2013, at the Wayback Machine
  46. ↑ Paterson, Jody (2011-06-24). "Google tramples sex workers' rights". Victoria Times-Colonist. Archived from the original on 2011-10-20.
  47. ↑ Cusack, Jim (2011-08-07). "Google u-turn on sex worker group's advert". Sunday Independent.
  48. ↑ No Sex Party please, we're Google Sydney Morning Herald September 13, 2012
  49. ↑ Chaffin, Zeliha (2019-12-20). "L'Autorité de la concurrence inflige à Google une amende de 150 millions d'euros". Le Monde (in French).
  50. ↑ Vincent, James (2022-03-04). "Google pauses all ad sales in Russia 'in light of the extraordinary circumstances'". The Verge. Retrieved 2022-03-18.
  51. ↑ "Ижевский радиозавод и другие кредиторы будут ходатайствовать о признании российского Google банкротом" [Izhevsk Radio Plant and other creditors are to join the bankruptcy proceedings of Russian Google]. Kommersant (in Russian). 2023-08-28.
  52. ↑ "К иску против Google присоединились 885 российских компаний" [More than 885 of Russian businesses joined the Google lawsuit]. Kommersant (in Russian). 2023-03-22.
  53. ↑ Rosso, Mark; Jansen, Bernard (Jim) (August 2010), "Brand Names as Keywords in Sponsored Search Advertising", Communications of the Association for Information Systems, 27 (1): 81–98, doi:10.17705/1CAIS.02706
  54. ↑ Stefanie Olsen (2004-04-13). "Google plans trademark gambit". CNET.
  55. ↑ "Update to the Trademarks policy (June 2023) - Advertising Policies Help". support.google.com. Retrieved 2023-10-24.
  56. ↑ le, Par La rédaction de ZDNet fr | Publié le mercredi 30 nov-1 à 00:00- Modifié (2006-06-29). "Confirmation en appel de la condamnation de Google pour contrefaçon". ZDNet France (in French). Retrieved 2023-09-15.{{cite web}}: CS1 maint: numeric names: authors list (link)
  57. ↑ "European Union: Google Adwords And Online Advertising: Trade Mark Infringement? ECJ Decision". www.mondaq.com. Retrieved 2013-05-02.
  58. ↑ Fishman, Ross. "Bad Precedent: Lawyer Censured for Buying Google Keywords for Other Lawyers and Law Firms". The National Law Review. Retrieved 2014-03-05.
  59. ↑ "Robert L. Habush and Daniel A. Rottier, Plaintiffs-Appellants, v. William M. Cannon, Patrick O. Dunphy and Cannon & Dunphy, S.C., Defendants-Respondents" (PDF). Case No.: 2011AP1769. Court of Appeals of Wisconsin Published Opinion. 2013-02-21. Archived from the original (PDF) on 2013-05-14. Retrieved 2014-03-05.
  60. ↑ "1-800 CONTACTS, INC. v. L | 722 F.3d 1229 (2013) | 20130716080 | Leagle.com". Leagle. Retrieved 2021-07-28.
  61. ↑ David O. Klein & Joshua R. Wueller, Trademark Enforcement and Internet Search Advertising: A Regulatory Risk for Brand Owners, IP Litigator, Nov./Dec. 2016.
  62. ↑ "Update to Other restricted businesses policy (October 2018) - Advertising Policies Help". support.google.com. Retrieved 2019-05-24.
  63. ↑ "Other restricted businesses - Advertising Policies Help". support.google.com. Retrieved 2019-05-24.
  64. ↑ "Restricting ads in third-party tech support services". Google. 2018-08-31. Retrieved 2019-05-24.
  65. 1 2 Penniment, Bradley (2019-05-23). "Google Declares War on Consumer Electronic Repair Service Centers". Medium. Retrieved 2019-05-24.
  66. ↑ "Google Ads No Longer Supporting Promotion of Computer Repair Ads Etc. (What to do)?". support.google.com. 2018-11-30. Retrieved 2019-05-24.
  67. 1 2 "Fossil fuel firms among biggest spenders on Google ads that look like search results". the Guardian. 2022-01-05. Retrieved 2022-01-05.
  68. ↑ Morel, Laura C. (2022-12-15). "Anti-abortion pregnancy centers are deceiving patients – and getting away with it". The Guardian. ISSN 0261-3077. Retrieved 2023-02-07.
  69. ↑ "Google Helps 'Fake Abortion Clinics' Target Low-Income Women". Tech Transparency Project. 2023-02-06. Retrieved 2023-02-07.
  70. ↑ Noor, Poppy (2023-02-07). "Google targets low-income US women with ads for anti-abortion pregnancy centers, study shows". The Guardian. ISSN 0261-3077. Retrieved 2023-02-07.
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