SEM stands for Search Engine Marketing. Some people call it Pay-Per-Click (PPC) or simply Google Ads. These terms are often used interchangeably. So what is an SEM agency? A company that specializes in search engine marketing.
When we want information, to find a product or a service, or figure out music lyrics – we’ve all done it! – we go to a search engine like Google and begin a search. Out pops a page full of search results that Google thinks are the most relevant to your keyword search terms and those links at the top are likely paid (or sponsored) SEM ads.
An SEM agency manages ad campaigns to help companies be those top sponsored posts in search results. This blog will cover how SEM is different from SEO and why SEM is important for businesses.
How is SEM different than SEO?
I’m glad you asked! We previously talked about how Search Engine Optimization (SEO) and Search Engine Marketing (SEM) are two very different concepts. We’ll focus on SEM today, but if you’re interested in SEO you can check out the What is SEO? post to dig into the nuances of SEO.
My thoughts on Using an SEM Agency for businesses
Before we dive in, I just want to note that, in my opinion, Search Engine Marketing is one of the most important tools you should have in your digital marketing toolbox. I think everyone should be using SEM.
It is cost-effective and very strategic. It puts you in front of your ideal target audience at the exact moment they are taking the time to look for you or the services you offer. SEM is like the screwdriver that should be in every toolbox and every marketing plan! An SEM agency can help you earn the highest ROI from your campaigns.
Why is SEM so important?
Ok, back to the blog post! When you look at a list of search engine results, oftentimes, the top results have a note that says “sponsored” or “ad” next to them.
These top links are paid search engine ads.
When you don’t have big arrows pointing to them, the notes can be subtle and people often don’t notice them. However, the important point here is that between 70 and 80% of all clicks on search engine result pages (SERPs) are on the top 3 to 5 links. So if you want to be seen by your customers and have them clicking your links, you really need to be doing Search Engine Marketing, and an SEM agency can help you get the best results.
What are the benefits of using SEM?
Search Engine Marketing has become an important aspect of digital marketing strategies for businesses aiming to drive targeted traffic to their websites. If you’re not convinced already to use SEM in your marketing strategy, these benefits might change your mind!
- Unlimited impressions mean free exposure. SEM ads pop up in search results that match their keyword search but you only pay for ads that are clicked on.
- Customers are already interested. SEM ads appear when customers are already looking for your product or service, or they may be looking for you specifically. That puts them further down the funnel and more ready to purchase.
- SEM has a strong Return on Investment (ROI). You can be strategic on the keywords and geography you select, and adjust the campaigns to reallocate underperforming segments.
- Capture great data. SEM provides outstanding data opportunities that can be used to guide other marketing decisions. Reports tell you what keywords are performing best (or not performing), the geography breakdown of people who clicked, your cost per conversion, and more.
How does SEM work?
Search Engine Marketing is a bidding scenario. You are bidding against other advertisers wanting to use the same keywords in the same geographical areas.
- Some keywords have more competition than others, so they will be more expensive.
- Typically, urban or densely populated areas will be more competitive than rural areas because there are likely more competitors in those urban areas.
For example, I live in Northwest Washington state. I’ve seen keywords have relatively low competition, making them less expensive, in rural areas when those same keywords in Seattle are much harder to win.
An SEM agency will invest time in keyword research before building these campaigns and give thought to what keywords people are looking for and where (geographically) you want your ads to appear. This is where that strategic approach is really important. You want to get the most bang for your buck and not spend money competing in a bidding war you can’t win.
When should you use SEM?
SEM works best in the middle of the funnel when customers are interested in the product or service and considering their options. And you most definitely want to have your SEM ads appearing during the intent phase because this is when customers are most likely to take the action step toward conversion.
The importance of SEM in those critical mid-funnel steps is why I strongly believe that Search Engine Marketing is one of the most important tools in your digital marketing toolbox. I think every business that sells a product or service or wants traffic to come to their store or physical location should be utilizing SEM. SEM is very effective and strategic, and each month you should have a treasure trove of data to improve all of your marketing efforts.
I often talk with clients who say, “I’m spending a lot of money on Google Ads but I’m not sure what I’m getting.” If this sounds like you or if you aren’t currently using SEM for your business, contact our team. If you don’t know your cost per conversion with your PPC campaigns, it’s time for a change! As an SEM agency, we can get you the paid ad results you’ve been looking for.
