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They need a research paper to show they're not pulling numbers from their ass.

Do people really click on ads on purpose?

Yes...?

Perhaps that's the trick -- if you make an ad look less like an ad, it's 0.1% more likely to convert.

And Google still hasn't figured out how to best their search advertising network business, so I assume that people click on ads, even if I'm not in that demographic.

You should really watch a child play a game that has interstitial ads. It's quite obvious that they often click on ads because they want to learn more (maybe not fully convert, but intentionally click).

Does anyone have the link to this paper?

I am curious if that millions in revenue is for Microsoft (not surprising) or advertisers (more interesting) - I would love to read through their thought process either way.