What is search engine marketing (SEM)? Definition, types & tips

Search engine marketing – SEM, for short – is an important tool for online businesses looking to maximise their online visibility.

Typically, SEM is a commercial tool that leverages search engines and other platforms. Businesses pay to position themselves at the top of search results for specific queries, keywords and audiences. This position drives clicks and sessions.

In this article, we will explore the world of search engine marketing, providing insight into the core concepts, strategies and benefits.

Search engine marketing (SEM) basics

Search engine marketing – sometimes called paid search advertising – is a form of marketing that contains a range of strategies, all with the primary aim of promoting brand and website visibility through search results pages and paid adverts.

Not to be confused with search engine optimisation (SEO), SEM is a non-organic form of traffic acquisition where businesses pay for each click they secure.

As a rule, SEM is a faster marketing tool than SEO to get started in, because of the ability you have to begin your marketing as soon as you pay. However, that doesn’t mean it is easy to perfect and, more importantly, that doesn’t mean that SEM is easy to run profitably.

While SEM might seem difficult when you get started, it’s important to bear in mind the benefits. According to Asset Digital Communications, over 93% of all online traffic is from search engines; additionally, ADC data suggests that businesses using a combined SEO and SEM strategy can increase their clicks by 25%, and their profits by 27%.

Key SEM concepts

When you’re first breaking into the world of SEM, there are several concepts and terms you should be aware of.

In the sections below, we’ve provided an introduction to some of them.

Pay-per-click (PPC) advertising

Pay-per-click (PPC) advertising is the most common form of SEM. Advertisers will bid on specific keywords and when users search those terms, the advertiser’s content will be displayed at the top or side of the search results, above the organic results.

An advertiser will be charged each time someone clicks on their brand, with the price being set by the bid. Part of the PPC process involves bidding against competitors to appear, with the top paid position being the most expensive.

Google and other search engines allow PPC advertising and typically offer tools, such as Google Ads, where users and businesses can manage their accounts.

PPC is used by a range of businesses but might be of particular interest if you’re planning to set up an ecommerce website, either for physical or virtual products.

Ad extensions

Ad extensions provide additional information along with your PPC ads. These extensions are designed to enhance your visibility and relevance to searchers.

Examples of ad extensions include:

site links, including links to specific links on your website
call links, providing phone numbers for direct calls
and location extensions, providing the physical address of your business.

Which of these extensions you use, and whether you use them at all, will depend on your marketing strategy. Often, businesses will test and optimise continuously to create the most effective form of ad possible.

Display advertising

Display advertising can be thought about in a similar way to billboards and posters in the real world. Brands and websites will pay to place visual ads, such as banners or graphics, on third-party websites.

Ideally, these display ads would be positioned on websites with an audience that matches the one you are targeting; this might mean that you base display selections on interests, demographics or even location.

Display advertising can be paid for in a few ways, though pay-per-click and a form of pay-per-view marketing are most common. With pay-per-view, the cost is normally set at high volume, meaning your business would pay a certain amount for every thousand views, for example.

Remarketing

Remarketing is a form of marketing that involves advertising to users that have previously visited your website.

The main aim of remarketing is to re-engage potential customers that have already shown an interest in your product. This could be users that visited your site but did not purchase, as well as those who did.

Remarketing ads can be displayed on search engines, social media and other websites. To run remarketing though, you need to capture data on your own website. When it comes to building your business website, you should consider how best to capture consent to remarket.

SEM benefits

There are several benefits that can make SEM an appealing form of website marketing for businesses of all sizes.

In the sections below, you can find out a little more about some of the advantages to bear in mind.

Immediate visibility

Unlike search engine optimisation (SEO), SEM enables businesses to achieve immediate visibility on search engine result pages (SERPs).

Done well, with optimisation and effective ad campaigns, businesses and users can position themselves in front of the audience they want to direct traffic to their site from day one.

Targeting

Search engine marketing allows advertisers to target specific keywords, as well as specific demographics or locations.

This level of targeting means that businesses can tailor their messaging and content to make it relevant to the audience they land in front of. Over time, this level of targeting also means that businesses can optimise and tweak ads and approaches to improve their return on investment.

Measurable results and analytics

SEM is enabled by a range of comprehensive tracking and analytics platforms. These platforms enable advertisers to measure the effectiveness of their campaigns. This means they can see what worked, what didn’t, and begin to consider how they can improve.

Metrics such as click-through rate (CTR), conversion rate (CR) and cost-per-acquisition (CPA) can help businesses to make data-driven decisions.

For more information about measuring performance, visitor our what is Google Analytics page.

Budget control

SEM advertisements have complete control over their budgets. They can set daily or monthly spending limits with automation built into platforms to stop bidding on terms once you’ve maxed out your allocated cost.

Additionally, the PPC model means that businesses only pay for the clicks they receive, reducing the cost of advertising to irrelevant potential users.

Search engine marketing: Final thoughts

Search engine marketing has long been a popular form of advertising for businesses of every size. When used as part of a larger marketing strategy, it can be an excellent way to build a revenue base to support other forms of marketing that may be longer-term, such as SEO or organic social media.

However, like these other forms of marketing, SEM is also evolving constantly. Platforms like Google and Bing make changes all the time meaning that SEM professionals need to keep a close eye on trends to make sure they keep operating profitably. This doesn’t just mean responding to changes in algorithms made by the platforms you use but also means optimising and testing to keep matching the needs and demands of your audience.

Bryn Glover

Bryn is the founder and editor of WebsiteJumpStart. He has worked in the digital field for over a decade and was editor for Startups.co.uk - the UK's leading small business website - and for NerdWallet UK before launching WebsiteJumpStart to help people and businesses get online with ease.

Content brief template

Whether you run a personal or small business website, creating engaging and interesting content is vital to engaging with your audience and hitting your goals. Every page on your website will have content of some kind – from your homepage and about us page to product listings or articles.

July 18, 2024 No Comments

What is Google Search Console? Definition, features & benefits

Search engines play a crucial role in connecting users around the world with relevant information. As the most popular search engine globally, Google holds a dominant position in this area. For that reason, understanding how a website performs in Google’s search results is essential for businesses and digital marketers. This

October 11, 2023 No Comments

What is Google Analytics? Definition, features and benefits

Google Analytics (GA) is a valuable tool that offers website owners and managers access to data and insight to help them monitor the performance of their website or websites. A comprehensive website analytics platform, GA provides information on a range of metrics covering everything from how much traffic your site

October 10, 2023 No Comments

What is keyword tracking? Definition & tips on how to do it

Keyword tracking is an essential part of search engine optimisation which allows users to monitor the performance of their site for specific keywords. Typically, this would involve keeping an eye on how your site ranks for specific keywords on Google, but also monitoring how the keywords themselves change over time.

August 24, 2023 No Comments

Best CRM software 2024: Compare top business picks

Maintaining strong customer satisfaction is vital for any business. The best CRM platforms offer a range of tools for businesses of all sizes to help manage interactions, streamline processes and improve customer happiness. With a range of customer relationship management (CRM) options available, it can seem tricky to choose the

August 16, 2023 No Comments

What is CRM? Definition, benefits & tips

For any business, establishing and nurturing a strong relationship with customers is vitally important. Customer relationship management (CRM) is a powerful tool that enables organisations to do just that. CRM processes and systems enable businesses to build meaningful connections, streamline operations and drive growth over time. In this article, we’ll

August 14, 2023 No Comments

Table of Contents