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An Introduction to Pay Per Click Advertising and Search Engine Marketing

An Introduction to Pay Per Click Advertising and Search Engine Marketing

What Is Search Engine Marketing

At one point search engine marketing was a blanket term that enveloped both the world of paid online advertising as well as search engine optimization. Over time, within the industry SEM has been adopted to solely refer to paid search. At Garrow Media LLC we generally use SEM or Internet marketing to refer to paid listings with the term search marketing used to encompass both SEO and SEM. Some of the most common forms of SEM are:

  • ​Paid Search Ads
  • ​PPC or Pay Per Click Advertising
    • This term also encompasses Pay Per Call advertising - Some ads, particularity those served to mobile search users, my be charged by the number of clicks that directly resulted in a call from a smartphone.
  • ​CPC or Cost Per Click Advertising
  • CMP or Cost Per Thousand Impressions
    • Most search ads are sold on a CPC / PPC basis, but some advertising options may also be sold on a CPM basis. Most people using CPM advertising are solely focusing on brand recognition rather than direct conversions (I.e. Ford, Nissan, KIA, Nike, Adidas, and many more).

SEM For Beginners

Google AdWords is by many standards the most popular paid search platform used by marketers, followed by Bing Ads, which also serves a significant portion of ads on Yahoo!. Beyond that there are a number of other PPC platforms as well as several social media platforms that offer a form of paid promotion. Search ads can not only boost your recognition among users but it can also help you to find a targeted audience that is looking for your products or services.

Everyone is doing paid search. How do we know? In their quarterly earnings report google showed a significant increase to income and beat revenue forecasts by almost 3%, this at first my not seem like a lot but to a company as large as Google it means big bucks. Paid search clicks alone grew by 18+% compared with the same period a year ago. The paid search platform is primarily dominated by Google and continues to gain adopters and a fair share of marketing dollars. Revenue comes from advertisers, Google is paid for each ad click, and growth to both numbers simply means more and more folks are running paid search campaigns.

How Do I Start?

Many companies like ours offer SEM management services or the ability to have our Google and Bing Certified team members run your campaigns. This means that rather than building a campaign from scratch by yourself our trained marketing managers will customize and run your search campaigns for you. This guarantees that your advertisements will have the best possible chance to appear right when a user is searching for your service or products.

How Do I Benefit From Paid Ads?

In Short each ad click in a PPC campaign costs money and that money goes to whichever search advertising service your company is using. In turn google serves your company to the user who clicked on your ad. This traffic to your site in addition to having a well optimized and built site can generate new leads for and traffic for your company. Also in turn this means that you made money off that advertisement. This is generally refereed to as ROI or return on investment. Yes, paid search is much like investing in your own company. This means that for every time someone clicks on an ad that you paid for your company has the potential to gain money. Most PPC tools operate on what is called an auction based system or where your goal is to out bid the competition for a spot on top of the search ads.

​Google recently released a video detailing how their search auction works:

This form of advertising biding only requires that you pay as much as the next lowest bid for your ad when it is clicked on. For example let's say that you bid $5 for your advertisement and your competition only bids $3. If your ad is placed higher in the search ads and is clicked then you only have to pay the $3 that your competition was bidding. This is a bit of an exaggerated price estimate as most ads only cost between $1-$2 or less to bid for.

For more information about pay per click advertising and the services that Garrow Media LLC offers contact us today!

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