The Evolution of Paid Search: From Keywords to Context

The world of paid search has transformed dramatically over the past two decades, predominantly the last. What began as a relatively straightforward auction model on Google has grown into a cross-channel, intent-rich ecosystem that now stretches far beyond traditional search engines.

Once, paid search meant bidding on keywords and appearing in the coveted top spots on Google. Today, it means meeting people where they are. Not just in their search results, but in their social feeds, video platforms and shopping apps. It’s no longer just about being the first result – it’s about being the most relevant, the most helpful and the most human. It means blending creativity with data and meeting people wherever their digital journeys begin. And now, that journey isn’t always starting with a Google search.

A Snapshot of Where It All Began and Where We Are

1998–2000: Paid Search Begins

• GoTo.com pioneers PPC ads: whoever pays most, wins the top spot – simple. No focus on relevance, targeting or measurement. 
• Brands were flying blind and spending without knowing what worked.

2000–2004: Google Changes the Game

• Google launches AdWords with quality-based ranking. 
• Advertisers are now rewarded for being relevant and not just rich. This marked the start of performance-focused search marketing.

2005–2015: Smarter, Mobile, More Measurable

• Conversion tracking, geo-targeting, and Google Analytics are introduced, giving advertisers real insight. 
• Mobile-first campaigns take off. 
• Ad formats expand with sitelinks, callouts and local extensions. Search evolves from keywords to full-funnel strategy.

2016–2025: AI, Audiences & Beyond Google

• Smart Bidding, audience targeting and Google Shopping reshape the landscape.
• Performance Max launches in 2021 enabling AI-driven campaigns across Search, Display, YouTube, Discover and Maps.
• Demand Gen rolls out in 2023 designed for top-of-funnel engagement using visual formats across YouTube, Discover and Gmail.
• AI Max is Google’s newest AI-native campaign type and combines creative generation, audience insights and media buying in one across two core features:
  • Search Term Matching: expands your reach by matching to additional relevant queries (even those you aren’t actively bidding on) using AI Max.
  • Asset Optimisation: dynamically customises ad copy and chooses the most relevant landing page to match user intent.
    • Don’t worry – advertisers still retain controls such as brand exclusions/ inclusions, URL exclusions and asset removals to minimise risk.
• Search becomes visual, contextual and cross-platform. Platforms like TikTok, Pinterest and Amazon emerge as key search touch points, especially for younger audiences.
• Brands shift from manual management to strategy and storytelling using AI to scale, but keeping creativity at the core.

From Keywords to Context

The rise of AI, audience targeting and automation has shifted the way we think about paid search. It’s no longer only about keywords – it’s about context. In the early days, the model was simple: bid on the right words, write a compelling ad and win the click. For years this worked, but as user behaviour evolved, so did expectations, meaning platforms and advertisers had to as well.

Today, it’s not just about what people are searching for, but why. Platforms are getting better at understanding intent and serving relevant results based on much more than search terms. Thanks to advancements in machine learning and audience targeting, advertisers can now build campaigns around behaviours, demographics, interests and purchase signals.

We can now connect with the most valuable users in moments that matter at every stage of the funnel from curiosity to conversion with tailored and timely messaging. Although slightly daunting in a world where tech is constantly evolving, for brands this is exciting and something to be embraced! Paid search has become a space for brand building and storytelling, not just selling.

Curious about where your brand fits in this new paid search landscape? Let’s talk about how we can help you show up in the right moments, with the right message, in all the right places. You can also watch our webinar on the Future of Paid Search here.