“For example, entering the query "buy domain" into the search box on Google’s home page produces search results and an AdWords text advertisement that appears to the RIGHT of Google’s search results” [1]
It is from October, 2000. It is so ancient, it is even before Schmidt happened. I don’t believe anything preceded that, but to be sure we’ll have to wait for Larry to chime in and clarify.
> Google’s quick-loading AdWords text ads appear to the right of the Google search results and are highlighted as sponsored links, clearly separate from the search results. Google’s premium sponsorship ads will continue to appear at the top of the search results page.