A Brief History of the Evolution of Computational Advertising - 3 Minutes to the Core of Google and Other Ads

Google advertising dates back to 2000, when Google co-founders Sergey Brin and Larry Page experimented with advertising as a way to make money in their academic research.In October 2000, Google launched its first advertising product, AdWords ( In October 2000, Google launched its first advertising product, AdWords, whose core function was to allow advertisers to display advertisements on search results pages that would be matched to keywords searched for by users.

• In 2003, Google launched AdWords (AdSense), a content-based advertising network that allows advertisers to display ads on websites relevant to their business. AdWords enables Google Inc. to expand the reach of its advertising business by placing ads on a wider network.
• In 2005, Google launched AdWords for Video, a service that provides a platform for video content creators and advertisers to leverage traffic from video sites like YouTube for advertising.
• In 2010, Google launched the Google Display Network (GDN), an ad network that allows advertisers to place ads on websites outside of Google's search results pages.
• In 2013, Google introduced Responsive Ads, which are ads that adapt to different devices and screen sizes, allowing advertisers to show the same ad on different platforms. Essentially, it's an adaptive ad type.
• In 2016, Google rebranded AdWords as Google Ads while introducing additional ad formats and features such as appable search ads, dynamic search ads, and targeted CPAs.

Computational Advertising Development

The history of computational advertising technology can be traced back to the early stages of Internet advertising, and as Internet technology continues to grow and become more popular, computational advertising technology continues to evolve. The following is the history of the development of computational advertising technology:

The age of static advertising:

In the early stages of Internet advertising, mainly static ads, advertisers can only place static picture ads, the effect is often unsatisfactory.

Keyword Advertising Times:Google Ads Becomes King

In 2000, Google launched the AdWords advertising system, introducing the concept of keyword advertising, which allows advertisers to place advertisements through selected keywords, a technique that greatly improves the accuracy and effectiveness of advertisements.

era of competitive bidding::

In 2002, Google introduced the bidding ranking advertising model, where advertisers can get higher ad display positions according to the bidding amount, and this model is widely used in the Internet advertising industry. (Key technology: generalized second highest price, GSP)

RTB Times:

Around 2010, real-time bidding (RTB) technology began to be applied to the field of advertising, advertisers can realize real-time bidding and precise placement of advertising display positions through RTB technology. (Key bidding technology: VGC)

The Age of AI:

In recent years, with the continuous development of artificial intelligence technology, the field of advertising has also begun to apply AI technology, through the analysis and processing of big data, to achieve the intelligence and personalization of advertising.

RTB vs Bidding Ads

RTB stands for Real-Time Bidding, which is a technology used in online advertising transactions.RTB technology connects the demand side and the supply side of advertising through automation.The demand side of advertising bids for advertising space at the highest price through real-time bidding, while the supply side of advertising auctions the advertising space to the demand side through the RTB platform to realize the maximize revenue.

In Google AdWords, bidding is a keyword-based advertising method. Advertisers bid in an ad auction for ad display positions for keywords related to their ads. Google uses a complex algorithm to display the bid-ranked ads on the search engine results page in the order in which the ads are ranked.

The difference between the two is:

Bidding rankings are based onKeywords.The ad bids are made for specific keywords.;

RTB, on the other hand, is based on individualadvertising positionReal-time bidding is performed, and ad bids are made for specific ad spacesThe

In addition.RTBIt also has a higher level of real-time, with data such as ad bids, displays and clicks updated in real-time, while bidding rankings are relatively slow.

The short answer is:

Bidding ranking is the process by which advertising platforms, based onKeyword triggered, with the display order lined up ahead of time.

But RTB.Not dependent on keyword triggers, not limited to one scenario triggered by a keywordBased primarily onUser behavior (cookies)Going for triggers, thus gaining a great advantage in display ads, and behavioral data more accurately reflecting user value compared to keywords, thus becoming a new revolutionary technology.

Representative ads: facebook

Facebook ads are basically RTB ads.

Facebook provides ad placement services through its ad placement platform, Facebook Ads Manager, which realizes real-time bidding placement of ads through RTB technology to display ads to the target audience at the optimal price and location. In this process, advertisers can set the target and budget of ad placement according to their own needs, and make detailed adjustments and optimizations to the ad placement position, placement time, and audience demographics, so as to obtain better advertising results.

However, with Apple taking the lead in promoting privacy policies, the three-way data (cookies) that RTB ads relied on were declared bankrupt. Representing the rtb era of display ads, it is no longer possible to obtain accurate user data, so facebook's advertising effect, after the new policy of ios14.5, there is a significant decline; of course, not only facebook is affected, Google also suffered greatly, and therefore, in the last resort, turned to the "one-party data" dominated AI era. Google has also suffered a lot, and therefore has no choice but to turn to the "data side" of the AI era. This is also one of the backgrounds of the birth of PMAX and GA4.

Facebook stock price.