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This choice dismayed advertising people who were used to creating ads designed to startle viewers and grab their attention. They had to find new ways of earning their living, and many did, by selling search engine optimization. Part of search engine optimization ( SEO ) involves determining the best keywords online payment to use to target a particular audience in order to get the most traffic and conversions. The advice and tools developed by SEO specialists is certainly useful, but a small business owner can still write his or her own ads without paying for that advice. The ads themselves cost nothing to produce, and they can be revised at any time with a few minutes of thought.

Google's choice to offer this advertising format was another contrarian stroke of genius, though the basis for the decision probably had more to do with the founders' paradoxical aversion to publicity than it do to any economic rationale. Because they put the performance of their search engine first, they didn't want advertisements to compromise the results. At best, banners would distract users who came seeking information; at worst, users might be tricked into mistaking an ad for a search re sult.

The minimalism of Google's ads offers several benefits. For one, response to the ad is direct and immediate. Users see an interesting headline and then click the ad to visit the site or buy the product. In addition, time to transaction is much shorter, and advertisers can quickly measure the performance of their campaign and the cost of sale.

Unlike persuasive ads in traditional mass media, which try to attract consumers to brands and gain their loyalty, Google ads are mostly informative. Persuasive ads usually want to change consumer habits—get them to switch from a manual razor to an electric shaver, from fabric handkerchiefs to paper tissues, from soap to gel. Informative ads, on the other hand, mainly provide product information, including features, uses, benefits, and prices. They attempt to convince consumers by appealing to reason—by providing consumers with facts that make them want to buy. Because Google ads offer very limited space (95 characters total at this writing), advertisers must attract viewers with just a few keywords: They must get right to the point.

The exclusive use of informative ads changes the rules of the game, giving advertisers without the massive financial resources often necessary to build a brand name more opportunities. Informative ads decrease the need for the incessant repetition that persuasive ads require to be effective—the assumption being that the more often an ad is seen, the more likely consumer behavior will change. In other words, the more people see a message repeated, the more likely they will be to change how they shave, their brand of detergent, or the car they drive.

With informative advertising, the story is different. Once people have the information payment gateway, they will eventually make a purchase or they won't. Viewers have no reason to click again and revisit the same site. This allows an advertiser with a modest budget to run an effective ad campaign on Google.

For Google to have built a sales force to reach small advertisers using conventional methods of ad sales would have cost a fortune. Google could never have launched its venture by hiring salespeople to sell ads; the cost of selling the ads would have been far greater than the income from selling those ads.

Ad Words succeeded because Google had the good sense to automate the ad placement process, thereby drastically reducing the cost of sales. Automation eliminates the need for sales reps; instead, customers come directly to Google. Whether large or small, experienced or inexperienced, any advertiser can construct an ad campaign without human intervention.

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