Editing Pay-per-click (section)

==History==

Several sites claim to be the first PPC model on the web,<ref>Jansen, B. J., and Mullen, T. (2008) [https://faculty.ist.psu.edu/jjansen/academic/pubs/jansen_overview_sponosored_search.pdf Sponsored search: An overview of the concept, history, and technology], International Journal of Electronic Business. 6(2), 114 – 131. ([[PDF]])</ref> with many appearing in the mid-1990s. For example, in 1996, the first known and documented version of a PPC was included in a web directory called Planet Oasis. This was a desktop application featuring links to informational and commercial websites, and it was developed by Ark Interface II, a division of [[Packard Bell]] NEC Computers. The initial reactions from commercial companies to Ark Interface II's "pay-per-visit" model were skeptical, however.<ref>[https://web.archive.org/web/20190108053619/https://adage.com/article/news/interactive-planet-oasis-web-sites-promotion-clout/78467/ Planet Oasis gives web sites promotion clout],  Bradley Johnson, ''[[Ad Age|Advertising Age]]'' July 8, 1996, Retrieved December 5, 2012,</ref> By the end of 1997, over 400 major brands were paying between $.005 to $.25 per click plus a placement fee.{{citation needed|date=December 2012}}

In February 1998 Jeffrey Brewer of [[Yahoo! Search Marketing|Goto.com]], a 25-employee [[startup company]] (later Overture, now part of [[Yahoo! Search Marketing|Yahoo!]]), presented a pay per click search engine proof-of-concept to the [[TED (conference)|TED]] conference in [[California]].<ref>[http://faculty.london.edu/mottaviani/PPCA.pdf Overture and Google: Internet Pay Per Click (PPC) Advertising Auctions] {{Webarchive|url=https://web.archive.org/web/20090325091910/http://faculty.london.edu/mottaviani/PPCA.pdf |date=2009-03-25 }}, [[London Business School]], ([[PDF]]) Accessed June 12, 2007,</ref> This presentation and the events that followed created the PPC advertising system. Credit for the concept of the PPC model is generally given to Idealab and [[Yahoo! Search Marketing|Goto.com]] founder [[Bill T. Gross|Bill Gross]].<ref>Jansen, B. J. (2011). Understanding Sponsored Search: Coverage of the Core Elements of Keyword Advertising. Cambridge University Press: Cambridge, UK.</ref>

[[Google]] started search engine advertising in December 1999. It was not until October 2000 that the [[Google Ads|AdWords]] system was introduced, allowing advertisers to create text ads for placement on the Google search engine. However, PPC was only introduced in 2002; until then, advertisements were charged at [[Cost per impression|cost-per-thousand impressions]] or [[Cost per mille]] (CPM). Overture has filed a patent infringement lawsuit against Google, saying the rival search service overstepped its bounds with its ad placement tools.<ref>{{cite web|url=http://news.cnet.com/2100-1023-876861.html|title=Overture sues Google over search patent|author=Stefanie Olsen and Gwendolyn Mariano |publisher=[[CNET]]|date=April 5, 2002|access-date=Jan 28, 2011}}</ref>

Although GoTo.com started PPC in 1998, [[Yahoo!]] did not start syndicating GoTo.com (later Overture) advertisers until November 2001.<ref>{{cite web|url=http://docs.yahoo.com/docs/pr/release975.html|title=Yahoo! and Overture Extend Pay-for-Performance Search Agreement|author=Yahoo! Inc.|date=April 25, 2002|publisher=Yahoo! Press Release|url-status=dead|archive-url=https://web.archive.org/web/20070609065924/http://docs.yahoo.com/docs/pr/release975.html|archive-date=June 9, 2007|access-date=May 18, 2010}}</ref> Prior to this, Yahoo's primary source of SERPs advertising included contextual IAB advertising units (mainly 468x60 display ads).  When the syndication contract with Yahoo! was up for renewal in July 2003, Yahoo! announced its intent to acquire Overture for $1.63 billion.<ref>{{cite web|url=http://news.cnet.com/2100-1030_3-1025394.html|title=Yahoo to buy Overture for $1.63 billion|author=Stefanie Olsen|publisher=[[CNET]]|date=July 14, 2003|access-date=May 18, 2010}}</ref> Today, companies such as [[adMarketplace]], [[Alliance Data|ValueClick]] and acknowledge offering PPC services, as an alternative to AdWords and AdCenter.

Among PPC providers, Google Ads (formerly Google AdWords), [[Microsoft adCenter]] and [[Yahoo! Search Marketing]] had been the three largest network operators, all three operating under a bid-based model.<ref name=customersnow /> For example, in the year 2014, PPC(AdWords) or online advertising contributed approximately US$45 billion of the total US$66 billion of Google's annual revenue<ref>{{cite web|url=http://www.investopedia.com/articles/investing/020515/business-google.asp|title=How Google Makes Money|last=Rosenberg|first=Eric|date=5 February 2015|website=investopedia.com}}</ref> In 2010, Yahoo and [[Microsoft]] launched their combined effort against Google, and Microsoft's [[Bing (search engine)|Bing]] began to be the search engine that Yahoo used to provide its search results.<ref>{{cite news|url=https://www.wired.com/business/2010/02/yahoo-microsoft-search/|title=Yahoo and Microsoft Join Search Forces|last=Singel|first=Ryan|date=18 February 2010|work=Wired.com|access-date=26 September 2012}}</ref> Since they joined forces, their PPC platform was renamed AdCenter.  Their combined network of third-party sites that allow AdCenter ads to populate banner and text ads on their site is called BingAds.<ref>{{cite web|url=http://www.webpronews.com/yahoo-and-microsoft-introduce-the-yahoo-bing-network-adcenter-becomes-bing-ads-2012-09|title=Link to Webpronews.com Article: Yahoo And Microsoft Introduce The Yahoo Bing Network, adCenter Becomes Bing Ads|last=Crum|first=Chris|date=September 10, 2012|publisher=WebProNews|access-date=26 September 2012}}</ref>