Paid search explained

By | August 31, 2019

Hey there! Ready to learn a bit about
advertising on search engines? We’ll cover how advertising
on search engines works. That’s called SEM
or Search Engine Marketing. We’ll explain why it’s so effective
and how businesses compete to show ads. It was really interesting,
when it came to ads. What works and what doesn’t? I came from a background of TV where I thought maybe it was a good idea
to trade on the career I had. But, when people are searching,
for example, a wedding speech writer they are looking specifically for someone
who can solve that problem. I was looking at the ad performance which ads were working,
and the click through rate. The ones that were working well were the ones that were servicing
a specific need. And, I saw that first by running an ad,
which was titled ‘Last Minute Panic’. And that started getting lots of hits,
because suddenly I’m advertising something that
a lot of people are searching for. And they need to see that in the ad and believe that in the ad,
in a split second. So, I had to make them a lot more specific
and a lot more believable as well. Imagine you live in the Cotswolds and you’re out running errands
and you’re desperate for a coffee. You pull out your mobile
and search “coffee shop Cotswolds”. Now you have a page
full of options to consider. Every section on the page, the map,
the ads and the search results presents various options,
and there is quite a few. Some of these results are selected
by the search engine’s organic formula. These pages are considered
the most relevant web pages that the search engine
can find for this search query. The other sections are ads. If you compare the ads you see
to the those in print magazines you might notice one big difference,
every ad is for a coffee shop. You don’t see ads
that are for unrelated things and, interestingly enough, the advert seem
quite similar to the organic results. This is by design and is what makes paid
search advertising so effective. A search engine’s most important job is to show people the results
they’re looking for. And this extends to the ads. The ads you see complement
the search results page with the ultimate goal
of helping a searcher find what they’re looking for. So, how exactly does search
engine advertising work? There are several models,
let’s take a look at one popular option. The text as you see
on a search engine results page. Every time somebody searches
advertisers compete for the opportunity to display ads. It happens in milliseconds
and the searcher won’t see the details. Only the winners, which are the ads
that appear on the page. To decide which ad wins, search engines
look at two different factors. These are: the bid and the quality. The bid is the maximum amount
an advertiser is willing to pay for a click on an ad. If someone clicks on the ad,
the advertiser is charged an amount equal to,
or sometimes less than, the bid. So, if an advertiser bids
two Pounds for a keyword that’s the most they would pay
for a single ad click. If an ad shows on the page,
but nobody clicks it doesn’t cost the
advertiser anything at all. Ideally, bids corresponds to the value
of the keywords to the business but, the amount is up to each advertiser. Some advertisers may be willing to bid
fifty Pence for a keyword. Others may be willing to bid 10 Pounds. Bid averages vary industry by industry,
and keyword by keyword. Bids are important, but so is quality. Winning the auction doesn’t always hinge
on having the highest bid. Search engines rewards ads and keywords
with strong relevance to the search. In fact, it’s possible that relevant ads
can win higher spots on the search results page
even with lower bids. In some cases, no matter how high a bid,
the search engine will not display the ad if it’s irrelevant. So, in a nutshell, paid ads offer
another way to promote your products and services on search engine
results pages. With a search advertising campaign
that is well constructed you can reach customers at the very moment
they’re looking for what you offer. What to learn more about SEM? Check out our videos
on search advertising.

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