Search Engine Marketing (SEM) and How to Maximize ROI

Search Engine Marketing (SEM) and How to Maximize ROI

Stuck on Page 17 of Google? We get that. If your website isn't showing up on the first page of search engines, it's like having a store in a great location with zero customers.  

The scary part is most people never even look past the first page of search results. That means if you're not ranking high, you're invisible to a ton of potential customers. However, Search Engine Marketing (SEM) can help you blast past your competition and land you right in front of your target audience.

SEM is about showing up for the right reasons, to the people who need you most and maximizing the return on your investment (ROI).

What is Search Engine Marketing (SEM)?

Search Engine Marketing (SEM) is a strategy to increase your website's visibility in search engine results pages (SERPs) through paid advertising. SEM is a term for all things related to marketing on search engines. However, it's commonly used to talk specifically about paid search marketing. 

When we talk about organic marketing, we're referring to Search Engine Optimization (SEO). 

Why is SEM so important? Because in today's world, almost everyone starts their online journey with a search engine.  That's a massive crowd you're missing out on if your website isn't visible. 

SEM helps businesses and marketers:

  • Get Seen Faster: Paid ads put you front and center when people search for your kind of product or service. This translates to a larger pool of potential customers who might be interested in what you offer.

  • Target the Right Audience: You can choose exactly which keywords your ad appears for, ensuring you reach people genuinely interested in what you offer. Imagine shouting your message only to people who are actively looking for what you sell, not those just passing by.

  • Boost Sales and Leads: With more targeted traffic and qualified leads, the potential for sales and conversions (turning website visitors into paying customers) goes up significantly. 

SEM vs. SEO: What's the Difference?

Search Engine Optimization (SEO) is the free (but time-consuming) process of optimizing your website to rank higher in organic search results. It's the concept behind making your website so awesome and well-organized that everyone wants to visit naturally. 

SEO is fantastic for building a strong foundation of organic website traffic. However, it takes time and effort to see results. This is where SEM steps in, offering a faster and more targeted approach through PPC (Pay-Per-Click) advertising.

With Pay-Per-Click (PPC) advertising, you create targeted ads that appear at the top of search engine results pages (SERPs) when people search for relevant keywords.

Sometimes, certain keywords in your industry are highly competitive, and achieving top organic rankings for them through SEO alone can be extremely challenging, if not impossible. So, when SEO alone doesn't cut it for those highly sought-after keywords, PPC and SEM enable businesses to bid on those competitive keywords and secure prominent positions in search engine results. 

How an Ad Auction Works

Every single day, countless businesses are running ads and fiercely competing to capture the attention of potential customers. And if you don't understand how ad auctions work, you risk wasting your resources and wondering why your campaigns aren't yielding the desired outcomes.

PPC advertising involves bidding on keywords, like an auction for the most relevant search terms. The higher you bid (and the better your ad quality), the higher your chance of your ad appearing at the top of the SERP.

Bidding on keywords

Bidding on keywords with Google Ads involves a straightforward yet important process that determines your ad's visibility and cost. Here's how it works:

Keyword Selection: Choose relevant keywords that align with user searches and represent your products or services.

Keyword Match Types: Specify match types (broad, broad match modifier, phrase, exact) for different levels of targeting.

Setting Maximum Bids: Determine the maximum cost-per-click (Max CPC) bid, the highest amount you're willing to pay for a click.

Ad Rank Calculation: Google evaluates bid, ad quality, and expected impact to calculate your ad rank.

The Auction Trigger:

It all starts with a user's search query.  The moment someone types "best running shoes for beginners" into Google (or any other search engine), the auction engine springs into action, identifying all relevant advertisers who might have a shot at winning that user's click.

Eligible Advertisers:

Not every ad gets to compete in every auction. Search engines consider factors like keyword relevance and campaign targeting to create a pool of eligible advertisers whose offerings might genuinely answer the user's search intent.  For instance, in our "running shoes" example, only ads related to athletic footwear and beginner runners would qualify for the auction.

The Bidding Battle:

Advertisers pre-set a maximum bid they're willing to pay each time someone clicks on their ad (known as Cost-Per-Click or CPC). This bid is a crucial factor, but it's not the only one. There are other factors such as:

  • The Ranking Formula: Search engines use a complex formula to determine the ad rank order, considering a combination of factors beyond just the highest bid. Here are the key players:

  • Your Maximum Bid: While a higher bid increases your chances of appearing at the top, it's not an automatic win. Think of it as your starting point in the competition.

  • Ad Quality Score: Search engines reward relevant, well-written ads with higher quality scores. Imagine getting bonus points for creating clear, concise ad copy that directly addresses the user's search query. A high-quality score can significantly boost your ad rank even with a moderate bid.

  • Expected Click-Through Rate (CTR): Search engines use algorithms to predict how likely users are to click on your ad. The higher the predicted CTR (based on ad relevance and overall quality), the better your ad rank. An ad that screams "click me" with a clear value proposition is more likely to get a higher predicted CTR than a generic ad.

Winning the Auction: Not Just About the Deepest Pockets

The ad auction system rewards more than just the biggest spenders. By focusing on creating high-quality, relevant ads that resonate with your target audience, you can compete effectively and maximize your return on investment.

SEM Strategy/SEM Best Practices & Helpful Tips

So, you understand the thrilling world of ad auctions and are ready to craft exceptional SEM campaigns that maximize your ROI. Here are some actionable tips to keep in mind:

Have a Tested Strategy: This includes in-depth keyword research, compelling ad creation, and landing page optimization that converts clicks into sales or sign-ups.

Data is King: Track your campaigns, analyze the data to see what's working (and what's not!), and adapt your strategy for maximum ROI. A/B testing different ad variations is a great way to see which ones resonate best with your audience.

Users First: Make sure your website is mobile-friendly. In today's world, if your site isn't responsive, you're losing a huge chunk of potential customers.

How to Set Up Google Ads Account & Campaign Structure

Getting started with PPC is easier than you think. Setting up a Google Ads account and campaign structure is simple and user-friendly. 

You create campaigns with specific goals, organize them into ad groups using relevant keywords, and create targeted ads to connect with your audience directly.

For a detailed step-by-step guide on setting up a Google Ads account and campaign structure, you can check out this article

Best SEM Tools

There are plenty of helpful tools out there to help you make the most out of your SEM camaigns. Here are our top picks;

Google Keyword Planner: This free tool from Google itself is a fantastic starting point. Explore search volume, competition levels, and identify related keywords to fuel your keyword strategy.

Ahrefs: Ahrefs goes beyond basic keyword research, offering in-depth competitor analysis and a powerful backlink checker. See what keywords your competitors are ranking for and uncover hidden opportunities.

SEMrush: Another comprehensive SEM tool, SEMrush provides valuable of keyword data, including long-tail keyword suggestions and keyword difficulty scores. Use it to identify keywords with high potential and lower competition.

Answer the Public: Spark your creativity with this handy tool that generates a data bank of questions people are asking related to your niche. Use these insights to craft optimised ad copy and informative landing pages that address user search intent.

Unbounce: Landing pages are the bus stop of your SEM journey. Unbounce helps you create high-converting landing pages easily with drag-and-drop functionality and A/B testing capabilities.

SpyFu: Uncover your competitor's paid advertising history with SpyFu. See what keywords they're bidding on, the ad copy they're using, and their estimated budget. Learn from their strategies and identify potential gaps in your own approach.

MozBar: This free browser extension provides on-demand SEO insights. Analyze page authority, identify potential SEO issues, and get real-time suggestions to improve your website's search engine ranking.

Google Ads Editor: Take control of your Google Ads campaigns with this downloadable editor. Make bulk edits, manage bids across ad groups, and streamline your campaign management workflow.

Google Analytics: This free analytics powerhouse is a must-have. Track website traffic, analyze user behavior, and measure the success of your SEM campaigns. Gain valuable insights to optimize your strategy and maximize conversions.

Wrap up

SEM is a powerful tool for any businesslooking to increase online visibility and attract more customers. By understanding the different aspects of SEM, implementing best practices, and using the right tools, you can attract the right audience in numbers and make the most out of your investment.


Ready to launch your SEM journey and take your website to the top? Don't wait!  Whether you decide to tackle it yourself or partner with a digital marketing expert, SEM can increase your website traffic and boost conversions.