The Rise & Fall & Rise Of Paid Search

To understand more about how SEM got coopted, you have to understand where SEM came from in the first place. That means a little history lesson about paid listings.
Search engines, as we know them, were largely born in 1994. From the beginning, they had organic listings. But literally years went by before paid listings were a regular option.
In the summer of 1996, paid listings first appeared� then disappeared � for a few weeks. Open Text, one of the leading search engines at that time, allowed people to buy paid search ads that appeared in its search results. This �Preferred Listing� service resulted in a huge backlash, despite the fact that the ads were clearly labeled. The web was still so new, ads and commercialization still so novel, that this seemed too much like selling out to some who were vocal on mailing lists and newsgroups. Open Text quickly dropped the program.
Paid listings came back in a big way with the launch of GoTo, on Feb. 21, 1998. All too often, Google gets the credit for �pioneering� the paid search revolution. That credit primarily belongs to Bill Gross, who founded the search engine � later renamed Overture, then even later acquired by Yahoo. Gross gambled that a model of selling placement would work. He and his team, including CEO Jeffrey Brewer, stuck with the core idea and distributing those listings to all the other major search engines except Google.
My 2000 In Review: AdWords Launches; Yahoo Partners With Google; GoTo Syndicates article covers this more, including how Google launched its own AdWords system. Google�s first paid ad appeared in December 1999, and the company quickly established the AdWords self-serve model the next year. But Google was greatly helped in its success because GoTo�s trailblazing gave it cover for commercializing its own results.           ajmalseotipsandtricks.blogspot.com