As we all know, it takes years and years of hard work, innovation and iterations to come out with a product like Google AdWords. AdWords has have been developed over a long period of time.

A system to charge advertisements on a cost per month basis was one of the most popular models of selling ads. In this model instead of banner ads smaller text ads were used. This was all toward the beginning of 2000. The ads were created basis the search terms. This was also done with a view to keep the ads detached from the search results on Google. These ads in text form were sold on a cost per month basis but were unsuccessful in generating much revenue. Due to the bad performance of this model of business, Google decided to sell its advertising business to the largest banner ad company of that time – DoubleClick.

As luck would have it, the depression set in and banner ads business became redundant business. So Google did not have the option to sell its ad business instead they introduced the self serve model of purchasing ads. At that point of time Google did not use the pay per click model being used by the company GoTo.com. Google however launched AdWords in the year 2000. Even though this was at a cost per month model and Google earned a decent amount of money, yet Google’s revenues were overtaken by Overture due to its pay per click model.

Nearly one and a half years after Google first launched AdWords , Google launched its second and newer version of AdWords. This version was launched as the pay per click model. This was almost similar to the Overture model of business. However Google did some iteration and introduced the new pay per click model with some differences from the original. They added an improvement to the existing model which turned out to be the revenue grosser for Google AdWords as it is today. Google understood the gaps in the overture Pay per click model of business. This model meant “the higher the bid the higher the exposure. This model however had some flaws in it. If suppose a person who bid for a higher amount got more exposure and the ad was not of relevance to users, it ended up not getting clicked on there by generating no revenues from the advertising.

It then became important to measure for significance of the ad. To be able to do this Google introduced the clickthrough rate. Now the bid amount did not matter at all. The higher the click on the ad the more is the revenue generated by it. So Google did not create or develop the pay per click model with page ranking instead it studied this model and understood the flaws in it to successfully create this model of pay per click.

Google AdWords has evolved so much so that it has become a source of revenue for Internet Marketing companies who help businesses with professional PPC Management services. Hiring an internet marketingcompany for you AdWords Australia advertising business, is a sensible idea, since these are professional who have years and years of experience in doing this.