Paid search is an important component of search engine marketing (SEM) and refers to the placement of paid ads in the search results of search engines such as Google, Bing or Yahoo.
The best-known platforms for paid search are Google Ads (formerly Google AdWords) or Microsoft Ads. The billing model for the ads is called PPC (pay-per-click), as advertisers have to pay for clicks on the ad. This is how paid search differs from organic search results, which are created based on search engine algorithms. As a rule, paid ads appear above the organic search results and are marked as an advertisement.
How does paid search work?
Search ads are created through platforms such as Google Ads and relevant keywords related to the landing page and company are booked in. When a user enters a search query on Google, the search engine searches its database for ads that match the keywords entered. The ads are then evaluated in an auction based on various factors, including the advertiser’s bid, the relevance of the ad, and the user experience on the landing page.
An important factor in paid search advertising is the cost-per-click (CPC), the amount an advertiser must pay per click on their ad. The CPC depends on various factors, such as the competition and the relevance of the keywords being bid on. Since Paid Search uses an auction method, the CPC is a dynamic price that can change constantly.
Companies need to identify relevant keywords that users use in search to increase the visibility of their ads. That’s why thorough keyword research is essential before placing ads.
The ads should be designed in an appealing way and convey a clear message to attract users’ interest. It is also important that ads are aligned with users’ search intent and contain relevant information and calls to action. This helps to increase the click-through rate (CTR).
Conversion tracking is an essential component of a successful paid search campaign. It allows businesses to measure the impact of their ads on actual conversions on their website. By implementing tracking codes or using tracking tools such as Google Analytics on their website, companies can track how many users who clicked on their ads actually performed a desired action on their website, such as making a purchase or submitting a lead form. This allows the effectiveness of the ads to be optimized in a targeted manner.
What are the benefits of paid search for businesses?
One of the biggest advantages of paid search is the ability to target users who are searching for specific keywords. Since the ads are keyword-based, there is a high probability that the users who click on the ads are actually interested in the company’s products or services.
Compared to other forms of advertising, such as television or print advertising, Paid Search offers greater flexibility and agility by posting or pausing keywords to respond to changes in the industry or seasonal fluctuations.
Another benefit of Paid Search is the measurability of results. Companies can track exactly how many clicks and conversions their ads generate and how much revenue they generate as a result. By analyzing this data, companies can optimize their campaigns and improve their bids and ads. In summary, Paid Search offers businesses a targeted and measurable way to increase their visibility, drive more traffic to their website, and increase conversion rates.