Google AdWords launched October 23, 2000 with 350 advertisers; shifted from CPM to CPC auction in February 2002

Claim: Google launched AdWords on October 23, 2000 as a self-service program with 350 advertisers, initially priced on CPM (cost per thousand impressions). In February 2002 Google relaunched as AdWords Select — a cost-per-click auction where rank was determined by bid and ad relevance (later formalised as Quality Score).

Source: Google press release, October 23, 2000 — "Since the beta debut of AdWords earlier this month, the program has seen widespread adoption by approximately 350 businesses and advertising agencies worldwide."

Confidence: Verified.

Why this matters for Candid: This is the moment "getting found" gained a second path — buy placement. Crucially the relevance-weighted auction meant a small, tightly-relevant advertiser could win prominent placement without outbidding everyone, lowering the entry barrier for SMBs. The "AdWords forced businesses to pay to stay visible" framing is interpretation, not documented fact — see Rule: When telling the Google history story publicly, keep dates and product launches separate from causation/motive claims — the documented record is the former, not the latter.

Related: GoTo.com (later Overture), 1998 — pioneered paid-placement auctions; the direct ancestor of AdWords, Google February 22, 2016 layout shift — right-rail text ads removed on desktop; up to four ads stacked above organic on commercial queries.