How Does Paid Search Marketing Work?
When you search on Google, your Search Engine Results Page (SERP) gives you a selection of paid results and organic results. The paid results appear first; you can differentiate them because they either feature a small green box containing the word ‘Ad’, or they appear in a ‘sponsored’ panel with an image. These are placed by businesses as part of their paid search marketing strategy. Their goal is to have searchers encounter their brand first.
Paid search marketing is an affordable way for businesses to advertise online, as there’s nothing to pay anything until someone clicks on the ad. Additionally, brands can be sure that the ads reach people who are actively searching for their product or service, increasing the potential for successful conversion. Thinking about investing in paid search marketing? Let the Outsource Your Marketing team walk you through it.
Table of Contents
2. Components of a Paid Search Campaign
- Keyword Research
- Ad Creation
- Ad Extensions
- Bid Management
3. Auction Process and Ad Rank
4. Benefits of Paid Search Marketing
- Immediate Visibility
- Targeted Audience
- Measurable Results
5. Creating an Effective Paid Search Strategy
- Setting Clear Goals
- Budget Allocation
- Strategic Budget Allocation
- Ad Testing and Optimisation
6. Common Paid Search Platforms
7. Challenges and Considerations
- Investment of Time
- Steep Learning Curve
- Can be Expensive
- Clicks Are Not Conversions
1. Understanding Paid Search Marketing
Search Engine Optimisation (SEO) offers businesses a – largely free – opportunity to enhance their visibility by ranking high in the major search engines. So why pay to achieve the same result? SEO offers no guarantees of a top spot, and even the best strategy can take 3-6 months to bear fruit. When businesses are looking for a targeted and results-driven approach, paid search marketing offers a faster and more precise strategy.
Paid search marketing uses keywords in the same way that SEO does. Where it differs is in the competitive nature of their use. Advertisers bid on specific keywords related to their products or services. Bidding successfully means that when users put keywords into search engines like Google or Bing, the advertiser’s ads appear prominently on the search results page, usually at the top or bottom of the page.
2. Components of a Paid Search Campaign
In the same way that SEO involves a number of different components in order to achieve a successful outcome, paid search marketing also requires a variety of skills to hit its goal.
Keyword Research
Keyword research forms the foundation of a successful paid search campaign. Keyword research for PPC relies upon identifying the keywords that will result in your ads being shown to the right searchers, in order to and drive clicks and conversions.
Most PPC keywords have commercial intent, which is to say that they are looking to attract searchers who are ready to purchase. The best way to check that your keyword matches your target audience, is to type it into search and check out the results.
Ad Creation
Ads seek to sell, rather than inform. Creating compelling ad copy, formatted in a way that will appeal to your buyers, is crucial to capturing users’ attention. Advertisers create concise yet persuasive ad text that highlights their offerings and encourages clicks.
Ad Extensions
Ad extensions enhance the ad further by providing additional information, such as location, phone number, or site links. This additional targeting ensures that local searchers will be served up the ad, with a visual representation in Google Maps.
Bid Management
Ad placement is critical to your paid search marketing, and it is determined through a bidding system, or online auction. Advertisers set a maximum bid they’re willing to pay for a click on their ad. The auction process then manages which ads appear in the top spot for a given search term.
3. Auction Process and Ad Rank
The auction process considers both the amount an advertiser is willing to pay alongside the ad quality. Ad rank is the position an ad is able to achieve on the results page. A top-quality ad with a range of relevant primary and secondary keywords, as well as an optimised landing page has a better chance of securing top positions.
4. Benefits of Paid Search Marketing
If advertisers are going to pay for search marketing, they need to know that it will produce results. Recent PPC statistics show that 40% of all clicks on the first page of a search engine are for the top 3 ads at the top, suggesting that the investment is sound. Further benefits include:
- Cost Control and Budget Flexibility. PPC allows businesses to have complete control over their advertising budget. Unlike traditional advertising methods where costs can quickly escalate, PPC enables businesses to set daily or monthly spending limits, ensuring that they don’t overspend.
- Targeted Audience Reach. PPC platforms offer advanced targeting options, enabling SMEs to reach their ideal audience with precision. Businesses can target based on keywords, demographics, location, device, and even time of day. This ensures that ad spend is focused on the most relevant and valuable potential customers.
- Immediate and Measurable Results. Unlike many other marketing strategies, PPC delivers rapid results. Once a campaign is set up, ads can start appearing on search engine results pages almost immediately. Additionally, PPC platforms provide detailed analytics and reporting, allowing businesses to track key performance metrics such as clicks, conversions, and ROI.
5. Creating an Effective Paid Search Strategy
Running a paid search marketing campaign requires clear sightedness in terms of business goals, budget parameters and ongoing optimisation of the ad:
6. Common Paid Search Platforms
Google Ads stands out as the leading paid search platform, boasting a substantial 92% share of the overall search engine market, encompassing both paid and organic searches. This dominant position solidifies its role as a pivotal player in the realm of PPC. Meanwhile, Bing Ads presents a comparable avenue for targeting individuals across the Bing search engine and its affiliated websites.
Additionally, social media giants such as Facebook and Instagram extend their reach through paid advertising solutions, providing an expansive opportunity to connect with a diverse and extensive audience.
7. Challenges and Considerations
Ready to start working with PPC? So far, we’ve focused on the advantages it can offer to businesses looking for a rapid, results-driven campaign. It’s only fair, therefore, to take a little time considering the challenges that paid search marketing can create:
- Investment of Time. A PPC ad requires a campaign manager who will eat, sleep, and breathe the campaign in order to wring every last jot of potential from it. PPC takes time.
- Steep Learning Curve. Running a campaign for the first time is a steep learning curve. If you’re planning to take this on, it’s worth having a low-cost trial run first.
- Can Be Expensive. Without attention to the campaign every step of the way, costs can mount up. Consider working with an experienced PPC campaigner early on.
- Clicks Are Not Conversions. Whilst PPC will get you clicks from people who are ready to buy, those clicks will then need to be turned into conversions.
Need Help With Paid Search Marketing?
If you’re contemplating your first paid marketing campaign, you may want to hand over the reins to an experienced campaigner in order to learn from them. At Outsource Your Marketing our paid search marketing specialists are just that; they work only on PPC campaigns across a range of sectors and can offer detailed guidance on setting goals for your ad, allocating budget, and monitoring it for maximum results.
