How Paid Search Campaigns Are Changing
Esparza is turning 25 this year, which can feel like a lifetime in advertising. Things move fast in this industry, and we’ve seen a lot of change in the last quarter century — the rise of digital advertising, the rise of performance advertising, and the rise (and fall) of many, many brands. And through it all, the steadfast power of a great creative campaign to connect with an audience.
To mark our anniversary, we’re looking back at how advertising has evolved in the last two-and-a-half decades — making some predictions about what the next 25 years will bring in a series of blog posts about the future of advertising.
We’re kicking things off with one of the most consequential changes in advertising we’ve seen: the rise of paid search. It turns out, Google Ads also turns 25 this year. For better or worse, it has changed the way people find goods and services and the way brands reach their customers. And looking forward, the way people find things on the internet is continuing to evolve.
Google Ads — Then
According to legend, the first Google paid search ad was placed for a live lobster delivery service based in Maine. This humble beginning marked the start of a revolutionary advertising platform. By 2024, Google Ads had grown to reach an estimated 4.77 billion people, representing 90% of all internet users.
Running a paid search campaign was simple in the early 2000s. In October 2000, Google AdWords introduced a self-serve, pay-per-click (PPC) model, allowing advertisers to bid on keywords to have their ads displayed alongside search results. The competition was low, cost-per-click (CPC) was cheap, and brands could achieve significant visibility with minimal investment.
By the 2010s, automation and artificial intelligence (AI) began to revolutionize paid search. Google introduced Smart Bidding, which allowed advertisers to optimize bids based on real-time factors such as user location, device, and time of day. Machine learning enabled more efficient budget allocation, reducing the guesswork involved in campaign management.
This shift marked the beginning of a more data-driven, performance-oriented approach to paid search.
As smartphone adoption skyrocketed, Google adapted its advertising model to cater to mobile users. Voice search further changed the landscape, with consumers using digital assistants like Siri, Alexa, and Google Assistant to conduct searches. This led to a rise in conversational search terms and a greater emphasis on local search optimization, as users often looked for businesses “near me.”
Google Ads — Now
While keywords were once the cornerstone of paid search, audience targeting has become equally—if not more—important. Google has introduced several audience-based targeting options that help advertisers shift the focus from targeting search terms to targeting the right people at the right time.
It has also focused more on AI-powered campaigns such as Performance Max, which consolidates multiple ad formats and placements into a single automated campaign that leverages machine learning to optimize performance across Search, YouTube, Display, Discover, Gmail, and Maps.
The rise of data privacy concerns has significantly impacted digital advertising. Regulations like the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) have forced advertisers to rethink how we collect data. Google’s plan to phase out third-party cookies has challenged us to find new ways to track and target users without relying on traditional tracking methods.
First-party data has become increasingly valuable, prompting businesses to invest in customer relationship management (CRM) tools, email marketing, and direct engagement strategies.
Google Ads — What’s Next
With the rise of generative AI and conversational search models like ChatGPT and Google’s Search Generative Experience (SGE), the future of paid search is set to change once again. AI-driven search results could reduce the number of traditional ad placements, requiring advertisers to rethink their strategies to maintain visibility.
Conversational AI is also altering how users interact with search engines, with more complex queries and context-driven responses becoming the norm. To stay competitive, brands must adapt by focusing on high-quality content, structured data, and AI-optimized ad strategies.
As we celebrate our 25th anniversary, one thing is clear: paid search will continue to evolve.
The next phase will likely see even greater AI integration, an emphasis on privacy-first advertising, and a more seamless blend of search and social commerce.
To stay ahead, brands must embrace automation while maintaining strategic oversight, prioritize first-party data, and continuously adapt to new search behaviors.
Are you ready to up your brand’s digital campaigns? Our team would love to chat.
