Saylor URL: http://www.saylor.org/books Saylor.org
how much the Web site owners were willing to bid, with the highest bid appearing at the top of the page.
The Web site owner would only pay for each click, as opposed to for appearing on the results page. By July
1998, advertisers were paying up to a dollar for each click! GoTo.com changed its name to Overture
Services, Inc., in 2001, and was acquired by Yahoo! in 2003. GoTo.com partnered with the portals Yahoo!
and MSN to monetize their search queries.
Overture successfully patented their PPC mechanism for search engines (“system and method for
influencing a position on a search result list generated by a computer network search engine” was
patented in 2001) and has since then pursued, successfully, lawsuits against other PPC providers,
including Google. [3] Overture initiated infringement proceedings under this patent in 2002 and settled
with Google after it had been acquired by Yahoo! Google agreed to issue 2.7 million shares of common
stock to Yahoo! in exchange for a perpetual license.
Google started search engine advertising in December 1999 and launched AdWords in October 2000.
AdWords allowed advertisers to place keyword-targeted listings but charged advertisers on a CPM (cost
per mille) basis. Google launched PPC advertising in February 2002, and today, advertising accounts for
about 99 percent of Google’s revenue.
[1] Rob Hof, “Google Defies the Naysayers,” Bloomberg BusinessWeek, April 17,
2008,http://www.businessweek.com/the_thread/techbeat/archives/2008/04/google.html?campaign_id=rss_blog
_techbeat (accessed June 18, 2010).
[2] Bernard Jansen and Paulo Molino, “The Effectiveness of Web Search Engines for Retrieving Relevant
Ecommerce Links,” Information Processing and Management 42 (2006):
1077,http://ist.psu.edu/faculty_pages/jjansen/academic/pubs/jansen_ecommerce_ipm2006.pdf (accessed April 3,
2008).
[3] Danny Sullivan, “Overture Files Lawsuit against Google,” Search Engine Watch, May 6,
2002, http://searchenginewatch.com/2164761 (accessed June 18, 2010).