Google Ads

Last updated

Google Ads
Other namesGoogle AdWords
Developer(s) Google
Initial release24 October 2000;24 years ago (2000-10-24) [1]
Stable release
3.06 (Build 696873523) / 15 November 2024;24 days ago (2024-11-15) [2] [3]
Platform Android, web
Type Online advertising
Website ads.google.com

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. [4] 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. [5] [6] Services are offered under a pay-per-click (PPC) pricing model, and a cost-per-view (CPV) pricing model.

Contents

History

Former logo of the service Adwords logo.svg
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". [7]

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. [8] This deal, while "transforming Google into a powerhouse", later attracted antitrust scrutiny, raising questions about its impact on market competition and digital advertising dominance. [9]

In January of 2007 Google purchased the radio advertising company dMarc Broadcasting.[ citation needed ]

In 2008, Google launched the Google Online Marketing Challenge, [10] an in-class academic exercise for tertiary students. [11]

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. [12] [13] [14]

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. [15] [16] Advertisers pay when users divert their browsing to click on the advertising copy. [17] Adverts can be implemented locally, nationally, or internationally.

Google's text advertisements mimic what the average search result looks like on Google. [18] 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. [19] In May 2016, Google announced Expanded Text Ads, allowing 23% more text. [20] 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, [17] 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. [21]

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. [22]

As of December 2010, Google AdWords decreased restrictions on sales of hard alcohol. [23] 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.

From June 2007, Google banned AdWords adverts for student essay-writing services, a move which received positive feedback from universities. [24] Google has a variety of specific keywords and categories that it prohibits that vary by type and country. [25] For example, use of keywords for alcohol related products are prohibited in Thailand [26] and Turkey; [27] keywords for gambling and casinos are prohibited in Poland; [28] keywords for abortion services are prohibited in Russia and Ukraine; [29] and keywords for adult related services or products are prohibited worldwide as of June 2014. [30] [31]

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. [32]

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. [33] 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. [34]

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. [35] 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. [36] [37]

Google Ads can be integrated with Google Analytics 4 (GA4), [38] which can improve conversion tracking effectiveness. This integration allows for a more comprehensive understanding of user interactions across different platforms and devices. [39]

Google Ads introduced enhanced conversions to make conversion measurement more accurate. [40]

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. [41] [42]

The introduction of Google Consent Mode in 2020 represents an effort by Google to navigate the complex intersection of aggressive digital advertising strategies and the stringent global data privacy standards that regulate them. This feature, which allows advertisers on the Google Ads platform to adjust how cookies are utilized based on user consent, is a response to heightened privacy expectations and legal frameworks such as the European Union's General Data Protection Regulation (GDPR). [43]

While Google presents Consent Mode as a tool that enables advertisers to maintain compliance with privacy laws while minimizing disruption to targeted advertising, its effectiveness and genuineness in protecting user privacy have been subjects of debate. Critics argue that while the tool ostensibly supports compliance, it also allows Google to maintain its dominant position in the digital advertising market by providing a mechanism that superficially addresses privacy concerns without significantly altering the underlying data collection practices.

Moreover, the introduction of advanced features in Consent Mode V2 in late 2023, which includes more granular controls over data usage and conversion modeling based on artificial intelligence, raises further questions. These enhancements aim to mitigate data loss from users who opt out of tracking, thus preserving the efficacy of Google Ads. However, they also underscore the ongoing tension between user privacy and the business imperatives of digital advertising, highlighting the challenges in achieving a true balance between the two. [44]

In this context, Google Consent Mode can be seen both as a strategic adaptation to regulatory pressures and as part of a broader industry trend towards more nuanced data handling practices. Nonetheless, the extent to which these changes genuinely benefit users, as opposed to primarily aiding advertisers and platforms like Google, remains a critical area for scrutiny. [45]

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. [46] 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. [47]

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. [48]

In 2006, Google settled a click fraud lawsuit for US$90 million. [49]

In May 2011, Google cancelled the AdWords advertisement purchased by a Dublin sex worker rights group named "Turn Off the Blue Light" (TOBL), [50] 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. [51] 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. [52]

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. [53]

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. [54]

In early 2022, Google suspended all ad sales in Russia in response to the ongoing invasion of Ukraine. [55] 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. [56] [57]

Controversies

Trademarked keywords

Google has come under fire for allowing AdWords advertisers to bid on trademarked keywords. [58] 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 [59] 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. [60]

In March 2010, Google was involved with a trademark infringement case involving three French companies that own Louis Vuitton trademarks. [61] 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." [62] 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 [63] has raised Right to Privacy concerns. [64]

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. [65] 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. [66]

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", [67] [68] 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". [69] This is yet to manifest, resulting in an effective ban on all IT support and repair related services on the Google Ads platform. [70] Commentators have expressed concerns that this is an attempt by Google to stifle consumers' right to repair electronic devices. [70] [71]

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. [72] 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." [72]

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. [73]

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. [74] [75]

Funding of misinformation and hate speech

A study by the Center for Countering Digital Hate found that The Gateway Pundit , an American far-right fake news website, had earned up to $1.1 million in Google Ad revenue between November 2020 and July 2021. [76] [77] [78] The website was demonetized in September 2021; [79] [80] the decision took place a few days ahead of the airing of a French documentary in which a Google representative was confronted with printouts of ads on the site. [79]

In October 2022, ProPublica reported that Google Ads was a major source of revenue for purveyors of disinformation in Africa, Europe and Latin America. The websites funded by Google promoted Jair Bolsonaro's false claims about voting system integrity in Brazil and COVID-19 and climate change misinformation in French-, German- and Spanish-speaking countries. [81]

In May 2024, non-profit organization Check My Ads reported that Google Ads is funding OpIndia, an Indian far-right website known for promoting conspiracy theories and Islamophobic rhetoric. [82] [83]

See also

Related Research Articles

Google AdSense is a program run by Google through which website publishers in the Google Network of content sites serve text, images, video, or interactive media advertisements that are targeted to the site content and audience. These advertisements are administered, sorted, and maintained by Google. They can generate revenue on either a per-click or per-impression basis. Google beta-tested a cost-per-action service, but discontinued it in October 2008 in favor of a DoubleClick offering. In Q1 2014, Google earned US$3.4 billion, or 22% of total revenue, through Google AdSense. In 2021, more than 38 million websites used AdSense. It is a participant in the AdChoices program, so AdSense ads typically include the triangle-shaped AdChoices icon. This program also operates on HTTP cookies.

Click fraud is a type of fraud that occurs on the Internet in pay per click (PPC) online advertising. In this type of advertising, the owners of websites that post the ads are paid based on how many site visitors click on the ads. Fraud occurs when a person, automated script, computer program or an auto clicker imitates a legitimate user of a web browser, clicking on such an ad without having an actual interest in the target of the ad's link in order to increase revenue. Click fraud is the subject of some controversy and increasing litigation due to the advertising networks being a key beneficiary of the fraud.

<span class="mw-page-title-main">Yahoo Native</span> Internet advertising service provided by Yahoo

Yahoo! Native is a native "Pay per click" Internet advertising service provided by Yahoo.

Pay-per-click (PPC) is an internet advertising model used to drive traffic to websites, in which an advertiser pays a publisher when the ad is clicked.

An online advertising network or ad network is a company that connects advertisers to websites that want to host advertisements. The key function of an ad network is an aggregation of ad supply from publishers and matching it with the advertiser's demand. The phrase "ad network" by itself is media-neutral in the sense that there can be a "Television Ad Network" or a "Print Ad Network", but is increasingly used to mean "online ad network" as the effect of aggregation of publisher ad space and sale to advertisers is most commonly seen in the online space. The fundamental difference between traditional media ad networks and online ad networks is that online ad networks use a central ad server to deliver advertisements to consumers, which enables targeting, tracking and reporting of impressions in ways not possible with analog media alternatives.

Online advertising, also known as online marketing, Internet advertising, digital advertising or web advertising, is a form of marketing and advertising that uses the Internet to promote products and services to audiences and platform users. Online advertising includes email marketing, search engine marketing (SEM), social media marketing, many types of display advertising, and mobile advertising. Advertisements are increasingly being delivered via automated software systems operating across multiple websites, media services and platforms, known as programmatic advertising.

Search engine marketing (SEM) is a form of Internet marketing that involves the promotion of websites by increasing their visibility in search engine results pages (SERPs) primarily through paid advertising. SEM may incorporate search engine optimization (SEO), which adjusts or rewrites website content and site architecture to achieve a higher ranking in search engine results pages to enhance pay per click (PPC) listings and increase the Call to action (CTA) on the website.

Contextual advertising is a form of targeted advertising for advertisements appearing on websites or other digital platforms, such as content displayed in mobile browsers. Contextual targeting involves the use of linguistic factors to control the placement of advertising material. The advertisements are selected and delivered by automated systems, taking into consideration the context of a user's search or browsing behaviour. As advertisers and marketers increasingly prioritise brand safety and suitability, contextual advertising has emerged as a crucial aspect in safeguarding the reputation and value of a brand.

<span class="mw-page-title-main">Microsoft Advertising</span> Online advertising service

Microsoft Advertising is an online advertising platform developed by Microsoft, where advertisers bid to display brief ads, service offers, product listings and videos to web users. Provides pay per click advertising on search engines Bing, Yahoo! and DuckDuckGo, as well as on other websites, mobile apps, and videos.

Keyword advertising is a form of online advertising in which an advertiser pays to have an advertisement appear in the results listing when a person uses a particular phrase to search the Web, typically by employing a search engine. The particular phrase is composed of one or more key terms that are linked to one or more advertisements. The most common form or keyword advertising, focused on payment methods, is pay per click (PPC), with other forms being cost per action (CPA) or cost per mille (CPM).

In Internet marketing, search advertising is a method of placing online advertisements on web pages that show results from search engine queries. Through the same search-engine advertising services, ads can also be placed on Web pages with other published content.

Mobile advertising is a form of advertising via mobile (wireless) phones or other mobile devices. It is a subset of mobile marketing, mobile advertising can take place as text ads via SMS, or banner advertisements that appear embedded in a mobile web site.

Keyword research is a practice search engine optimization (SEO) professionals use to find and analyze search terms that users enter into search engines when looking for products, services, or general information. Keywords are related to search queries.

<span class="mw-page-title-main">Targeted advertising</span> Form of advertising

Targeted advertising or data-driven marketing is a form of advertising, including online advertising, that is directed towards an audience with certain traits, based on the product or person the advertiser is promoting.

<span class="mw-page-title-main">NebuAd</span> American online advertising company

NebuAd was an American online advertising company based in Redwood City, California, with offices in New York and London and was funded by the investment companies Sierra Ventures and Menlo Ventures. It was one of several companies which originally developed behavioral targeting advertising systems, and sought deals with ISPs to enable them to analyse customer's websurfing habits in order to provide them with more relevant, micro-targeted advertising. Phorm was a similar company operating out of Europe. Adzilla and Project Rialto also appear to be developing similar systems.

Google Ad Manager is an ad management platform introduced by Google on June 27, 2018. for large publishers who have significant direct sales. It combines the features of two former services from Google's DoubleClick subsidiary, DoubleClick for Publishers and DoubleClick Ad Exchange (AdX). Google Ad Manager initially used a second-price auction format, before announcing that it would be replaced with a first-price auction format in March 2019. Google Ad Manager is the free version of this online ad management software and it is recommended for small businesses. Google Ad Manager 360 is the paid version. Google Ad Manager does not require a minimum amount of impressions on individual active ads, but it does have a limit of 200 million impressions per month. Google Ad Manager manages inventory for advertisers, publishers and ad servers. Advertisers are able to manage their inventory of ad creative, publishers are able to manage their ad space inventory, and ad servers can use the platform to determine which ad to serve and where to serve it. Additionally, Google Ad Manager can use data collected from ad performance and ad space performance to make suggested optimizations to the user. These optimizations suggest what the user could change to better reach the goals they have set for a particular campaign.

Quality Score is a metric used by Google, Yahoo!, Facebook and Bing that influences the ad rank and cost per click (CPC) of ads.

<i>Google, Inc. v. American Blind & Wallpaper Factory, Inc.</i> Legal case

Google, Inc. v. American Blind and Wallpaper Factory, Inc., No. 5:03-cv-05340, was a decision of the United States District Court for the Northern District of California that challenged the legality of Google's AdWords program. The court concluded that, pending the outcome of a jury trial, Google AdWords may be in violation of trademark law because it (1) allowed arbitrary advertisers to key their ads to American Blind's trademarks and (2) may confuse search-engine users initially interested in visiting American Blind's website into visiting its competitors' websites.

A potentially unwanted program (PUP) or potentially unwanted application (PUA) is software that a user may perceive as unwanted or unnecessary. It is used as a subjective tagging criterion by security and parental control products. Such software may use an implementation that can compromise privacy or weaken the computer's security. Companies often bundle a wanted program download with a wrapper application and may offer to install an unwanted application, and in some cases without providing a clear opt-out method. Antivirus companies define the software bundled as potentially unwanted programs which can include software that displays intrusive advertising (adware), or tracks the user's Internet usage to sell information to advertisers (spyware), injects its own advertising into web pages that a user looks at, or uses premium SMS services to rack up charges for the user. A growing number of open-source software projects have expressed dismay at third-party websites wrapping their downloads with unwanted bundles, without the project's knowledge or consent. Nearly every third-party free download site bundles their downloads with potentially unwanted software. The practice is widely considered unethical because it violates the security interests of users without their informed consent. Some unwanted software bundles install a root certificate on a user's device, which allows hackers to intercept private data such as banking details, without a browser giving security warnings. The United States Department of Homeland Security has advised removing an insecure root certificate, because they make computers vulnerable to serious cyberattacks. Software developers and security experts recommend that people always download the latest version from the official project website, or a trusted package manager or app store.

Google France SARL and Google Inc. v Louis Vuitton Malletier SA (C-236/08), also known as Google v Louis Vuitton was a landmark decision in which the European Court of Justice (ECJ) held that search engines operators such as Google do not themselves infringe trademark rights if they allow advertisers to use a competitor's trademark as a keyword.

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