Understanding SEM or Search Engine Marketing
Generally, SEM refers to a set of technical tools and strategies that help optimize the visibility of websites and web pages through search engines. Essentially, the goal is to appear more prominently among Google and other search engines' results when a user searches for keywords related to a brand.
Typically, two types of results appear when a search is made:
- Organic results are the unpaid results that search engines list as responses to a user's search query. In order to decide which to display and in which order, search engines use algorithms to decide which website responds best to the search intent. The set of techniques and tools used to organically rank is known as SEO (Search Engine Optimization). These results do not require advertising investment, but it is important to keep in mind that if a page does not appear among a search engine's top results, it will likely have a very limited number of organic visits.
- Paid results. Search engines also have a section (usually at the top but also in other positions on the page) where advertisers can bid for a sponsored link. Unlike organic listings, here the brand must pay a certain amount for each click obtained. To drive traffic through ads on search engines, you'll need to turn to search engine advertising solutions.
Technically, Search Engine Marketing encompasses both SEO techniques and search engine advertising. In practice, however, most marketers use SEM to refer exclusively to search engine advertising, or paid results.
This advertising system within search engines is commonly referred to as PPC (pay-per-click) or CPC (cost-per-click). While these terms define the payment model where advertisers pay only for generated clicks rather than impressions, SEM is often synonymous with PPC.
Basic SEM Concepts
SEM is a very broad topic that has many different avenues to explore. Below, we've linked some articles to more specific topics within the SEM methodology.
- SEO and SEM are two important components of a successful online marketing strategy. The best approach is to use both SEM and SEO together to achieve maximum results.
- SEM Positioning refers to the practice of paying search engines to display ads for websites in SERPs. This is typically done by bidding on keywords.
- SEM Campaign is a collection of SEM activities that are designed to achieve a specific goal, such as increasing website traffic or generating leads. A campaign includes a set of keywords, ad copy, and targeting settings.
- SEM on Google. Google Ads is the most popular SEM platform. It allows businesses to create and manage SEM campaigns that target search results on Google itself and other Google properties.
Why Use SEM for Your Business?
Incorporating SEM into your marketing strategy can serve several purposes:
- Attract highly qualified traffic to your website. Search engine marketing is highly effective if you aim to capture users' attention and generate clicks. It filters users based on their search terms (among other things), ensuring that the traffic you receive consists of individuals who are likely interested in the solutions you offer.
- Promote your brand or business globally. Ranking at the top of Google results is a great way to gain visibility for your brand. Even if a user doesn't click on your page the first time they see it, they'll start to gain awareness of your brand and of the solutions you offer.
- Drive conversions and sales. Platforms like Google Ads offer a range of tools to track conversions and ensure the effectiveness of your ads. Moreover, its robust algorithm can prioritize different marketing objectives you've established and enhance the performance of your campaign.
- Extend your reach on a tight budget. Search engine advertising solutions offer vast potential reach, but also the ability to adjust your budget to meet your needs at any given time.
- Personalize your ads: SEM allows you to target your ads to specific audiences with different demographics, interests, and lifestyles. This means you can show your ads to potential customers who are likely to make a purchase.
- With Google Ads, you can extend your advertising beyond the search engine itself, using the data and parameters available to deploy contextual advertising on other websites. The customization options are extensive, targeting users who have previously visited your website, are interested in specific product types, or reside in particular cities, among other criteria.
Overall, SEM is a powerful tool that can help you achieve various marketing goals. If you want to drive traffic to your website, generate leads, or increase sales, Google Ads solutions are a great option. Through these solutions, you can display advertisements on the search engine itself and leverage the available data and parameters to showcase contextual ads on other websites. Combined with SEA campaigns, these tactics can effectively elevate your brand’s preference and reach.
Advantages and Disadvantages of SEM
You might be wondering whether SEM should be an addition to your digital marketing strategy. Undoubtedly, search engine marketing is a potent tool suitable for nearly all types of brands. To better assess when and how to integrate it, it's crucial to understand its key advantages and disadvantages.
Advantages
- Highly Measurable: Tools like Google Ads offer detailed reports on your campaign's progress, allowing you to know exactly what's happening with your ads at all times. Additionally, integration with Analytics ensures everything is perfectly monitored.
- Real-Time Tracking and Editing: Analytical interfaces let you see live updates, enabling immediate course corrections if you're not seeing the desired results.
- Pay-Per-Click: You only pay for the clicks you actually get. You can always control your maximum daily and total budget, and the maximum cost per click you're willing to pay. This ensures that the campaign remains profitable and within your means.
- Speed: Compared to other techniques like SEO or content marketing, search engine marketing can yield relatively quick and large-scale results, depending on how much you are willing to invest.
- Accessibility: With scalable investments, this solution suits large corporations and small businesses alike. They compete in the quest to secure top positions for as many or as few keywords as they deem appropriate.
- Segmentation: Another strong point is the way this platform segments. Because it’s keyword-oriented, it targets an audience actively interested in your brand or the solutions you offer. Plus, it allows filtering by other factors like location, language, or behavior.
Disadvantages
- Budget Dependency: To put it plainly, SEM works only as long as you're paying. While you may optimize your campaigns over time and reduce cost-per-click, you must continue paying for each visit you acquire.
- Potential Volume Limitations: Depending on the search volume over time and the specificity of the keywords or the targeted geographic area, there might be a cap on the number of people who can see your ad.
- High Level of Competition: With the rising popularity of search engine marketing, many companies compete for the same keywords, driving up costs and sometimes making it challenging to achieve a good ROI. Depending on the keywords you bid on, your market, and its saturation level, the CPCs can be quite high and volatile.
- Complexity and Learning Curve: While launching a basic SEM campaign might be straightforward, ad platforms offer numerous options and tools that can be overwhelming, especially for beginners. Developing an advanced and comprehensive strategy might benefit from expert guidance.
SEM Dictionary: Top Terms to Know
Let's review the basic concepts you need to know to move through the world of search engine advertising. Since people use Google for most searches, we have based this on the terms used in Google Ads.
- Keyword: Keywords are the cornerstone of SEM (and SEO). Simply put, they are the words, word groups, or phrases that people search for, and that will activate your ad.
- Search Intent: This refers to what motivates a user to search for something and what it is they expect to find or achieve when doing it. Intent can range from informational to transactional, depending on their goal.
- Text Ad: The standard ad format displayed on search engines is made up primarily of text. Typically, these include titles, two lines of text, and a customizable link.
- Search Network: This is the part of the search engine where your ads can appear. The simplest format is text ads at the top of the search results page, but ads can also appear in other places like Google Shopping or Google Maps.
- Impressions: The number of times an ad is displayed to a user.
- Clicks: The number of times an ad is clicked on
- CTR (Click-Through Rate): The percentage of impressions that result in a click.
- CPC (Cost Per Click): The amount you have to pay the platform for each click. Google allows you to set a maximum CPC to ensure you don't exceed your budget.
- Conversion: An action completed by the user after clicking on the ad. Conversion goals are defined by the advertiser but typically involve leads or sales.
- ROAS (Return On Ad Spend): This metric is used to evaluate a campaign's profitability by dividing the revenue generated by the campaign by its cost.
- Landing Page: The destination page your ad directs users to after they click. This page can be part of a more complex website or a standalone page created specifically for the campaign.
Today, SEM is a necessity. However, it is much more powerful if used in combination with others, such as SEO. The study of keywords is the fundamental pillar of the search engine strategy. The study of buyer personas is also crucial to understanding the audience when looking for certain keywords because it allows for more accurate segmentation.
How to Develop a SEM Campaign
Strategy and planning are essential to guarantee the results of your SEM campaign. Let's take a look at the main steps to launching a successful campaign.
Keyword Research
Keywords and thorough keyword research are the foundations of any SEM campaign. Make sure you do your research thoroughly and select the right keywords for your target audience.
1. Analyze the Product or Service (or Landing Page)
What are the main keywords people use to search for products or services like yours?
- Begin by brainstorming a list of relevant keywords that come to mind based on your product or service. Think about the main features, benefits, and unique selling points.
- Research your competitors’ websites and landing pages to identify the targeted keywords that are performing well in your industry.
- Engage your target audience through surveys, interviews, or social media interactions to understand the language they use when searching for products or services.
2. Keyword Research Tools
Various keyword research tools are available on the market to help you generate keyword ideas and analyze their performance. Some popular tools include SemRush, Google Trends and Google Keyword Planner.
3. Filtering and Selecting Keywords
After generating a list of potential keywords, filtering and selecting the most relevant and effective ones is essential. Discard irrelevant words, group related keywords, and look for keywords with low competition.
Once you have completed these steps, you will have a definite list of keywords to optimize the SEM campaign. These keywords should be present on your landing pages and ads to get the best results.
Campaign Creation
Once you have your keywords, you can start creating your SEM campaigns. This involves setting a budget, choosing your bidding strategy, choosing campaign objectives and creating ads. You can consult our most recent guide to SEM and Google Ads for a detailed step-by-step process to setting up successful campaigns.
Measurement and Optimization
Once the campaign is up and running, you need to monitor its performance and make necessary adjustments. This includes tracking your click-through rate, cost per click, and conversion rate. To ensure you don't miss anything, you can set up alerts for critical aspects of the account and set a specific review schedule.
Most Popular Search Engines for SEM
When it comes to search engines, Google is often the first one that comes to mind. However, other SEM platforms can also deliver good results. Here are the three main solutions for search engine advertising.
Google Ads
Google Ads is a leading search engine advertising platform. Here are some tips for using it:
- Match types determine how closely a user’s search term matches your chosen keywords. In Google Ads, match types range from broad match (the widest) to exact match (the strictest). You can also set negative matches to exclude certain search queries from showing your ads.
- Google's search engine advertising is mainly based on text ads, including a title, visible URLs, descriptions, and extensions.
- CPC (Cost Per Click) refers to the price you pay for each click on your ads. The cost depends on factors such as ad quality and bidding.
Bing Ads
Bing Ads (or Microsoft Advertising) is a robust alternative to Google Ads. It reaches a significant potential audience (almost 10% of the market share) and has excellent targeting and configuration options. While similar to Google Ads, there are some differences to note:
- Negative Keyword Matching: Bing ads have stricter negative keyword matching, allowing you to use only phase matching for negative keywords.
- Minimum Bids: Sets a minimum amount for maximum bids, which may affect your bidding strategy.
- Location Options: Bing offers location targeting with the ability to specify a radius within a city or zip code.
- Ad scheduling: You can schedule ads to appear in 15-minute increments throughout the day or specify certain times for ad display.
- Extensions: Bing has image-specific and stock-specific extensions to enhance campaigns, offering flexibility for international targeting.
- Time Zones: You can set up different time zones within a single campaign.
- Filter reports: You can filter reports based on search partners and exclude those that are not relevant to your advertising goals.
Yahoo
Yahoo's advertising solution allows you to reach users who perform searches on this search engine. Some key formats and options are available such as:
- Display ads: These ads appear at the top, bottom, or side of a website or within the content.
- Search ads: This classic SEM format shows ads in the search engine when users enter a specific keyword.
- Sponsored ads in different formats: Yahoo offers image, carousel, and native video ads as additional ad formats.
- Mail ads: These ads are integrated within inboxes or displayed through banners.
The Benefits of Hiring a SEM Agency
SEM tools, such as Google Ads, can be complex to manage. There are many variables to consider, and optimizing your account and staying on top of results in real time can be challenging. Therefore, delegating this work to a SEM agency can be worthwhile. An agency can help you do the following:
- SEM campaign planning: Defining objectives and budget and setting up the campaign structure, keywords, and ad groups.
- Keyword research and management: Identifying the right keywords and setting the right match levels.
- Ad copywriting: Creating clear, concise ad copy to persuade potential customers to click.
- Campaign analysis: Continuously analyzing the data to make informed decisions and achieve the best results.
- Quality score optimization: Optimizing the campaign to achieve a high-quality score will result in lower CPCs and better ad positions.
- Bidding strategy: Setting the right bids to achieve the desired results.
- Conversion rate improvement: Analyzing and adjusting different aspects of the account, from keywords to landing page design, to increase the number of conversions.
To get the best results from this kind of collaboration, we recommend that you look for a Google Partner certified agency, like ours!
