13 July 2019

Part II: Continuation of examining the history of online paid advertising : 1999 – 2002: Advertisers turn to paid search and pay-per-click

Direct marketing is a form of communicating an offer, where organizations communicate directly to a pre-selected-customer and supply a method for a direct response. Among practitioners, it is also known as direct response marketing. By contrast, advertising is of a mass-message nature, whereas online marketing drives brand awareness for your company, events, content and products or services. Digital marketing is the process of promoting your business online. There are dozens of different strategies that can be a part of this process.All of these strategies are designed to improve brand awareness and consistently grow your business over time.

With a minimal investment, digital marketing can change the future of your company by earning you more customers, bringing in more revenue, and achieving your business goals. We are continuing our blog series by looking back at the development of online marketing over the past several years. As banner ads continued to gain popularity, advertisers became increasingly interested in targeting specific consumer demographics, rather than just placing their ads wherever space was offered and hoping the right people would see it. This led to the beginning of targeted ad placement. WebConnect, an ad agency that specialized in online ads, began helping their clients identify websites their ideal consumers visited. Now, companies could place ads where their target demographics were more likely to see them.This was nothing short of revolutionary in the digital advertising space.  Not only were companies reaching more relevant audiences, but websites hosting the ads were also able to display banners that were more applicable to their visitors.

1999 – 2002: Advertisers turn to paid search and pay-per-clickBy this time, the web was expanding rapidly and users needed a better way to navigate the terrain. With search engines steadily gaining popularity, advertisers looked to create ads that were more targeted and less loathsome. They turned to sponsored search as the next digital advertising frontier.

In 1999, GoTo.com — an emerging search engine company that would later be acquired by Yahoo — introduced the first pay-for-placement search engine service. Advertisers were given the opportunity to bid for top search engine results on particular keywords. Despite some initial outcries that paid search would lead to corrupt results, GoTo.com was able to monetize their search engine through the model. Pay-for-placement eventually evolved into pay-per-click. Companies bid on search result placement on a per-click basis: e.g., I’ll pay GoTo.com $1 per click if you put my company as the top search result. This led to search results that were largely determined by how much a company was willing to pay. The highest bidders were usually listed first, even above more relevant content, and it was unclear to users which results were paid and which were organic content.The user experience of paid search was suffering, and one up-and-coming search engine thought they could fix it.

Google introduced AdWords in 2000, originally under a pay-for-placement ad model. Google wanted to create a sponsored search experience that generated revenue without compromising the quality and relevancy of search results.This is where we will start to get a bit more detailed in our blog series regarding paid online marketing which is quickly becoming the standard for all business marketing needs.In our next blog, we will examine the growth of paid advertising from 2002 when Google started with pay-per-click advertising and examine the evolution of this marketing tool to where we are today. The future looks very bright for online marketing and those who get in now will dominate their business field in the next 5 years while others will flounder.Source From Karla Cook for hubspot.com <https://blog.hubspot.com/marketing/history-of-online-advertising

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