Sponsored search: A brief history

Daniel C. Fain, Jan O. Pedersen
Bulletin of the American Society for Information Science and Technology

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excerpt From the start, advertisers were concerned with how to measure effectiveness, and publishers were concerned with how to set prices. Some publishers charged a fixed fee to appear on a site, while others such as Netscape and Infoseek in 2005 used the cost per mille (CPM) — the cost to display an advertisement a thousand times –just as for offline advertising. A very basic question was whether the banner advertisements were actually causing users to visit the site. Some advertisers were practicing direct response marketing, which seeks a measurable and attributable response. The easiest response to measure was the click on a hyperlink. In 1996 Yahoo! agreed to charge Procter & Gamble only when users clicked from Yahoo! to a Procter & Gamble Web page. The two companies used the cost per click (CPC) as a common currency, translating the advertiser goal into a basis for pricing. For search advertising, LinkStar introduced CPC pricing in 1996. on 6/7/2019, 2:45:28 PM

excerpt In 1996, the search engine Open Text briefly offered preferred listings, in which sites would pay to be inserted into the search result set for particular keywords. on 6/7/2019, 2:47:33 PM