It's a little confusing to read now, so for context: at the time Google published this, it only put ads in the sidebar to the right of search results. This post was written to criticize the practice of putting ads atop search results, which competitors sometimes formatted almost indistinguishably from organic search results.
Amazing how clear the writing is, how simple the message. That’s, like, totally not the corpspeak Goog emits now on a daily basis.
So, let’s do some digging.
Earliest version of url dates back 4+ years.
Things were a little better than, but not by much. This has to be earlier.
Ah, here is:
This page is from a book by Douglas Edwards, employee number 59 published in 2011.
The content of OP url, written by same, is dated March 2002.
That company no longer exists. Goog should remove it from their website.
(I'm fairly certain that I have not viewed anything from this book, nor any book for that matter, this year.)
The site was created by Russians though, just not sure it is hosted there anymore.
"It is clear that a search engine which was taking money for showing cellular phone ads would have difficulty justifying the page that our system returned to its paying advertisers. For this type of reason and historical experience with other media [Bagdikian 83], we expect that advertising funded search engines will be inherently biased towards the advertisers and away from the needs of the consumers."
The other thing I've noticed is that more and more of the top results are from garbage content farms. Filtering this kind of crap out was the original reason Google existed and everyone switched to them, but they're failing at it now. IMO Google is overripe to be replaced with something better.
“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” 
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.
Verdict is this: they started at the top, then things went sideways ;)
The load speed difference between these two archived pages is huge.