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?

Searching for “holiday in Rome” and getting ads packed from an intelligent agent.

Are you searching from the UK ? Are you logged in google ? Do you have any cookies stored in your pc ?
The more of it, the better the “agent pack” will be!

The results is that it won’t look like an ad, but a complete full service including: place to stay, place to eat, travel/tour around Rome, museums and monuments to visit, cars to rent, tickets to buy, shopping places, and so on… (including the most relevant events during your staying).

A perfect agent who provides a list of services relevant to you… and you will only need to check the box: yes or not.

Personalized/customized relevant useful (and probably pleasant) “hidden” ad service!

And it can always be improved!!!

Read the full article in publishing2.com – Google AdWords: A Brief History Of Online Advertising Innovation