What Is Search Engine Marketing (SEM) And How Can SEM Help Your Business?

What Is Search Engine Marketing (SEM) Exactly?

Let’s go back to the past and figure out what made search engines develop SEO and SEM. In the 1990s, the usage of the internet became mainstream, and so the number of websites increased over time. Search engines need some business model to get revenue and keep their business going.

So, they developed this method to finance their services. Many information and software engineering companies developed pay-per-click models in the 1990s, including Open Text and Goto.com. 

To help you understand SEM, we will have to define SEO for you. Search engine optimization (SEO), in simpler terms, gets your website or webpage to appear in the top search results but in an organic way. In an organic way, we meant creating content that is helpful and engaging and gives a good user experience to the visitor. 

Search Engine Marketing (SEM) is like online internet marketing and does the same: rank your website in the top results of the search results page, but you have to take a different path. In this, you still have to create compelling, helpful content, but there are high chances that your content will get ranked because you are paying for it. 

It is like putting a billboard on a building or pole and paying the owner of the house or pole to let you post your advertisement. Let’s help you understand the difference between both.

SEO Vs. SEM – Things To Clear Out!

People often use SEO and SEM interchangeably; little do they know they are both different digital marketing tactics that are distinct in approach and goals. Let’s discuss some of the aspects that might confuse you about SEO and SEM.

SEO puts its hopes on organic search results and is all about tweaking your website and content to rank on search engines. At the same time, SEM uses SEO and paid search advertising (PPC) in combination to increase visibility in SERPs.  

A search engine optimizer will use tactics like on-page optimization, off-page optimization, and technical SEO to rank on SERPs. Meanwhile, a search engine marketer will use on-page optimization, off-page optimization, technical SEO, and PPC campaigns to achieve its goals. 

People often wonder:

In SEM, we pay to put our marketing campaigns, so it is a paid method, while in SEO, we also pay for guest post sites. So why is this not paid marketing and not considered SEM?

While guest posting can involve costs like writer fees or platform fees, it’s primarily an SEO tactic. The goal is to build high-quality backlinks and improve your website’s authority, which indirectly leads to higher organic rankings. SEM, on the other hand, directly involves paying for ad placements on search engines.

Is SEO completely free?

While SEO doesn’t involve direct payment to search engines, it can still require investment. This includes dedication to content creation, technical optimization, and link building, hiring an SEO optimization agency or a professional to manage and execute your SEO & marketing strategies, and also search engine optimization tools to track progress, analyze competitor data, and identify opportunities.

Which is better, SEO or SEM?

Both SEO and SEM have their own advantages and disadvantages. The best approach depends on your specific goals, budget, and industry. For example, SEO offers long-term, sustainable results but can take time to see significant improvements. At the same time, SEM provides immediate visibility and traffic but requires ongoing investment to maintain results.

Can I use SEO and SEM together?

Absolutely! In fact, combining SEO and SEM can be a powerful strategy. SEO can improve the quality score of your Google pay-per-click ads, while a pay-per-click campaign can provide valuable data that can inform your SEO efforts.

How Can Search Engine Marketing (SEM) Help Your Business?

SEM, SEO, and digital marketing can be a great option for businesses of all sizes. No matter whether you are working for a small business or a large enterprise, with strategic utilization of Google paid search advertising. Businesses can increase their online visibility and drive targeted traffic to their websites.

1) More Visibility And Better Awareness

SEM campaigns, particularly Pay-Per-Click (PPC) advertising, allow you to place your ads prominently on search engine results pages (SERPs). You get immediate visibility and boost brand awareness if you understand the SEO meaning and know the paid search practices. 

Make sure your business is seen by potential customers actively searching for products or services related to your offerings. A study by Statista found that in 2022, Google Ads alone generated over $224.5 billion in revenue, highlighting the significant impact of paid search advertising on businesses worldwide.

2) Targeted Reach With Better Customer Acquisition

Target reach, also known as on-target reach. It is a metric that measures the number of people in a target audience that a campaign reaches. This gives info on the on-target reach percentage of the target audience’s demographics, locations, interests, and potential search terms for which you can target. This will help you acquire new customers who are highly likely to be interested in your products or services, increasing your conversion rates and return on investment (ROI).

3) You Know The Numbers To Make Decisions

Do you know how many sales are needed to make a profit? This helps establish goals and determine when breakeven is achieved. SEM campaigns provide valuable data and insights into campaign performance. 

You can track key metrics such as click-through rates (CTR), conversion rates, cost per click (CPC), and return on ad spend (ROAS). This data allows you to analyze the effectiveness of your campaigns, identify areas for improvement, and make data-driven decisions to optimize your strategies.

4) An Edge Over Your Competition

When there is insufficient competition in the market, the dominant firms will use their market power to charge higher prices and might offer decreased quality to block potential competitors. So, it is better to level up with SEM to give tougher competition to businesses offering similar products or services. 

Your SEM strategy will give you an edge over your competitors. With SEM, you appear at the top of search results, capture valuable market share, and gain a competitive advantage in your industry.

According to a study by WordStream, the average click-through rate (CTR) for Google Ads text ads is around 1.91%. This means that for every 100 people who see your ad, nearly two will click on it, demonstrating the potential for significant traffic and leads.

5) No Loss Investment

Google has one of the biggest market shares in search engine advertisements, which means 82% of the market share. SEM does not come for free; it involves an investment. The cost, whether high or low, depends on your marketing budget, but the more, the merrier. 

SEM is the safest investment in your business as it gives control over your budget and can adjust your bids and campaigns to maximize ROI. SEM platforms offer flexible pricing models and tools to help you optimize your spending and ensure you’re getting the most out of your investment.

How Search Engine Marketing (SEM) Work?

SEM encompasses a range of techniques aimed at improving a website’s organic search rankings as well as paid search advertising, often referred to as pay-per-click (PPC) advertising. Paid search advertising is the most prominent aspect of SEM. This involves creating and running ad campaigns on search engines like Google, Bing, and Yahoo. Advertisers bid on specific keywords or phrases that users enter into search engines. 

When a user’s search query matches these keywords, the advertiser’s ad may appear at the top or side of the SERP, typically labeled as “Sponsored” or “Ad.” Every time a user enters a search query, an ad auction takes place. Advertisers bid on keywords and set a maximum cost-per-click (CPC) – the highest amount they are willing to pay each time a user clicks on their ad.   

The auction then considers various factors, including bid amount, quality score, ad relevance, landing page experience, ad formats, text ads, display ads, video ads, shopping ads, etc. 

How To Research Keywords For SEM?

Keyword research is extremely important for SEO and SEM. For SEM campaigns, it means identifying the specific terms and phrases that users enter into search engines when looking for products, services, or information related to your business.   

1) Your Target Audience

The first step of keyword research is to know your target audience. Who are they? What are their demographics, interests, pain points, and online behavior? What are their needs and goals? What are they searching for when they come online? 

How do they speak? What kind of language do they use to describe their needs and problems? Once you know your target audience, you can identify the keywords they are most likely to use when searching for your products or services.

2) Set Some Goals For Your Campaign

What are you hoping to achieve with your SEM campaign? Increase brand awareness? Generate leads and inquiries? Drive sales and revenue? Your campaign goals will significantly influence the types of keywords you should target.

For example, if your primary goal is to generate leads, you might focus on keywords with high commercial intent, such as “buy [product]” or “[service] pricing.” If your goal is to increase brand awareness, you might target broader keywords related to your industry or brand.

3) Now You Know Your Seed Keyword

Start with a list of seed keywords – relevant terms related to your products, services, or industry. Start with a basic brainstorming session to come up with initial keywords. Research your top competitors. What keywords are they targeting? What keywords do they rank for in search results? Tools like SEMrush and Ahrefs can help you analyze your competitors’ keyword strategies.

4) Take Help From Keyword Research Tools

You must utilize keyword research tools to expand your initial list of keywords. For example, use tools like Google Keyword Planner, SEMrush, Ahrefs, etc. Google Keyword Planner is a free tool provided by Google that helps you find relevant keywords and estimate their search volume. 

SEMrush is a comprehensive platform that offers a wide range of keyword research tools, including keyword suggestions, competitor analysis, and search volume data. Ahrefs is another powerful toolset that provides in-depth keyword research data, including keyword difficulty, search volume, and competitor analysis.   

5) Keywords With Match Types

When using paid search platforms like Google Ads, you can use different keyword match types to control the level of match between your ads and user search queries. Broad match, phrase match, exact match, and negative match are the options. 

In broad matches, your ads may trigger variations of your keywords, including synonyms, misspellings, and related terms. In phrase match, your ads will trigger when the search query includes your keywords in the exact order. 

In the exact match, your ads will only trigger when the search query exactly matches your keywords. In the negative match, it excludes specific keywords from triggering your ads, helping to prevent irrelevant clicks.   

6) Keywords Should Be Relevant And Valuable

You will have to prioritize keywords based on their relevance to your target audience, search volume, and competitive landscape. For example, use high-search volume keywords as they have a high number of monthly searches, but they may also be highly competitive. 

Another example is long tail keywords, as these are longer, more specific phrases with lower search volume but higher conversion rates. Then, there are low-competition keywords, which have lower search volume but are less competitive, making it easier to rank for them.   

7) Keep Monitoring And Tweaking

The competition and conversion rate for each keyword keep changing over time. Therefore, experts say keyword research is an ongoing process. You have to regularly monitor your keyword performance, analyze your campaign data and adjust your keyword list accordingly. 

You can conduct thorough keyword research and continuously refine your strategies, and you can ensure that your SEM campaigns are targeting the right audience with the right messages, ultimately bringing high click-through rates, more conversions, and a better return on investment. 

How Do Ad Auctions Work?

Ad auctions are the mechanism behind how online advertising is bought and sold. In essence, they are real-time bidding processes where advertisers compete to display their ads to specific audiences.   

An ad auction is triggered when a user performs an online action, such as searching for something on Google or visiting a website. Advertisers who have targeted that specific audience or keyword can participate in the auction. Each advertiser submits a bid, indicating the maximum amount they are willing to pay for a specific action, such as a click or an impression (a view of the ad).   

The auction system then evaluates various factors to determine the winning bid and the ad’s placement. The ad with the highest combined score of bid and quality factors wins the auction and is displayed to the user. The actual cost per click (CPC) for the winning advertiser is usually slightly higher than the next highest bid, ensuring that the advertiser pays a competitive price.   

Ad auctions operate in real-time, ensuring that ads are displayed to users in a timely and relevant manner. This dynamic process allows advertisers to reach their target audiences efficiently and effectively while ensuring publishers receive fair compensation for their ad space.

Final Thoughts

Every business with a paid marketing budget needs Search Engine Marketing (SEM). We hope this guide will help you understand the details of Search Engine Marketing. If you’re looking to enhance your digital marketing efforts and unlock the full potential of SEM, Emerging Software can help.

Our team of experienced digital marketing experts can provide tailored solutions to meet your specific needs, from developing and executing effective PPC campaigns to optimizing your website for search engines. Contact Emerging Software x Emerging Digital Agency today for a free consultation and discover how we can help you achieve your business objectives.