Search engine marketing (SEM), also known as pay-per-click (PPC), refers to the sponsored text ads displayed when performing a search.
The most prominent example of SEM is Google Adwords, where targeted ads are shown on the top and right hand side of the Google search screen.
Benefits of SEM
The most significant benefit of SEM is that visibility is instant, meaning that your ads are displayed as soon as your account is setup and approved. As the advertiser, you pay Google every time someone clicks on your ad. The price that you’ll pay as an advertiser varies considerably between industry.
SEM generates traffic predictably, albeit at a premium. If your budget is $100 per day, and you know that your cost per click is approximately $5, then your site will receive 20 clicks per day. Therefore, return on investment (ROI) is fairly easy to calculate.
Variables in SEM: Ad Cost and Position
There are many variables determining the amount Google will charge you per click, as well as the position that your ad will show on the Google search page. Here are some of the major variables:
- Level of industry competition
- The relevance of your ad in relation to the keyword
- The relevance of your landing page in relation to the keyword.
How To Run an Optimal SEM Campaign
Managing an SEM campaign to achieve a positive ROI involves the following:
- Frequent bid adjustments to minimise cost per conversion
- Optimising ad display times (time of day, day of week)
- Split-testing ads
- Removal of non-performing keywords from ad groups
- Addition of new keywords to ad groups
- Creation and removal of ad groups
- Modification of ads in ad groups
- Landing page consultation and recommendations to improve quality score and optimise conversion rates.
Are You Focussed on ROI?
Creating an Adwords campaign is easy. Creating an Adwords campaign to achieve a positive ROI requires expert management consistently.
Orange Line manages hundreds of thousands of dollars in combined SEM budget across its client base. We use industry best software and practice to ensure that our clients generate a positive return from their SEM spend.