Establishing an online presence is crucial for small businesses. The more accessible you are, the more customers will find you – which means more chances to sell something.
Search engine marketing (SEM) is a digital marketing strategy that increases your website’s visibility and boosts its ranking on search engines. It puts your website at the top of Google’s results page, so users see your business before any other links.
In this guide, I’ll cover the basics of search engine marketing, such as how to use it, SEO vs. SEM, and why these concepts are vital for small business owners— whatever their industry.
But first, let’s answer the question, “What is search engine marketing?”
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Through paid advertising, search engine marketing (SEM) promotes websites by improving their rankings on search engine results pages, also known as SERPs. The main focus is pay-per-click ads, where businesses bid on keywords relevant to their products and services.
These pay-per-click ads come in many formats, like banners and product listing ads. One of SEM’s biggest benefits – and the point of it, really – is that it places advertisers (like your business) directly in front of would-be buyers.
Here’s an example of what a product listing ad would look like:
How Does Search Engine Marketing Work?
Let’s start with some SEO basics. Keywords are words or phrases people search for on Google. If your business can anticipate which keywords your customers are searching for, you can create search engine marketing campaigns that capitalize on these queries.
But how? It all comes down to keyword research. Meaning, you’ll have to:
- Identify keywords that are relevant to your business.
- Highlight keywords that customers are most likely to use in their searches.
- Incorporate target keywords into your website’s content.
Luckily, there are numerous free keyword research tools. Moz Keyword Explorer and Google Keyword Planner are great places to start. You can also use Ahrefs and Semrush, too.
Once you’ve determined your targeted keywords, you can focus on creating ads, which involves ad auctions and keyword bidding.
How Does an Ad Auction Work?
How much would you pay for thousands of people to see your ad? A keyword bid, or a pay-per-click bid, is the amount you’ll pay to rank for a specific keyword.
An ad auction is essentially a “bidding war” for digital ad space. Bidding on a keyword enters your ad into an auction for that space. Your ad will appear at the top of that results page, helping to generate clicks, conversions, and sales.
Of course, not every ad appears in every search. The ad auction takes a variety of factors into account when determining ad placement on the SERP. The two main factors Google considers are your maximum bid and the Quality Score of the ads.
The maximum bid is the most you’ll pay for a click.
The Quality Score measures the overall quality of your ad.
Google compares these metrics during the ad auction and generates an “ad rank.” The higher your rank, the more likely your ad will win the auction.
SEO vs. SEM: What’s the Difference?
SEO is short for “search engine optimization.” It shares a common goal with SEM in that it increases your visibility on SERPs. However, SEO uses a slightly different strategy to rank on search engines.
- SEO is the practice of optimizing a website to improve organic (unpaid) search engine rankings. It includes content creation, link-building, on-page optimization, and other factors that help you rank higher on Google without paying.
- SEM focuses on paid search results, bidding on keywords, and putting your targeted ads in front of potential buyers.
SEO and SEM are essential parts of any online marketing strategy. SEO generates evergreen traffic, while SEM is a great way to drive conversions and sales.
When to Use Search Engine Marketing
If you’re wondering when to use search engine marketing, the answer is pretty simple: when you’re ready to increase your company’s reach. Many consumers buy products online, so SEM is an effective marketing strategy for businesses that want to establish an online presence.
Unlike traditional advertising, SEM really only requires paying for impressions that result in visitors. It’s a highly effective use of marketing budget. Google even has free AI tools that optimize your ad spending. You’ll find potential customers at precisely the right moment without spending more than you can afford.
How to Get Started With Search Engine Marketing
SEM can seem intimidating at first, especially if you don’t have much SEO experience. But putting a basic strategy into practice will give your business a big advantage over those that don’t.
Digital marketing is all about getting the most out of your money. With AI, search engine marketing (SEM) continues to grow and evolve, so keeping up with current trends and being flexible with your strategy will help you stay ahead. SEM is an effective marketing strategy for any business that wants to build an online presence — especially small ones looking to compete with bigger brands.
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