Definition: Applied Semantics was a Santa Monica, California based company that produced software for online advertising. Google purchased the company in April of 2003 and used the technology to enhance AdWords and AdSense.
The 2003 press release said, in part:
"Applied Semantics is a proven innovator in semantic text processing and online advertising," said Sergey Brin, Google's co-founder and president of Technology. "This acquisition will enable Google to create new technologies that make online advertising more useful to users, publishers, and advertisers alike."
Applied Semantics' products are based on its patented CIRCA technology, which understands, organizes, and extracts knowledge from websites and information repositories in a way that mimics human thought and enables more effective information retrieval. A key application of the CIRCA technology is Applied Semantics' AdSense product that enables web publishers to understand the key themes on web pages to deliver highly relevant and targeted advertisements.
