Today (as every day) I got up with a main goal: don’t login on my blog but after checking my feeds aggregator, I found an interesting article about google and online advertising.

And now I am here writing something about that great article:

All innovation looks inevitable, except while it’s happening.

Google introduced clickthrough rate, as a measure of the ad’s relevance, into the ranking algorithm. So if an ad with a lower bid per click got clicked more often, it would rank higher.

The result — a lower bid ad with more clicks generated more revenue than a higher bid ad with fewer clicks.

That “economy” turned Google into the great money-making machine that it is today.

What’s notable is that Google didn’t invent search or auction-based pay-per-click advertising — their innovation was perfecting it.

This is a ‘must be read’ article.
What next then?
Will it be with the Semantic Web?

» Read more..