What Is SEM Marketing & How to Get the Most Out of It?

More than 2 trillion searches are processed through Google every year, and nearly half of those searches are for something local. We’ve said it before and we’ll say it again: If people can’t find your business online, they might not find your business at all.

Businesses need an online presence in order to remain competitive and relevant nowadays—there’s no way around it. As such, businesses are constantly exploring new methods to drive leads and conversions and increase revenue. One of the most common ways businesses leverage their website is through search engine marketing or SEM marketing.

SEM marketing, which involves the use of paid search ads, helps businesses get their brand in front of thousands of potential customers actively searching for their products or services. However, navigating SEM marketing can be daunting. To help you out, we put together this guide that explains what SEM marketing is, how it differs from SEO, and even shares some SEM marketing tools you should try, and more. Plus, we included a free keyword research template that will help you get the most out of your marketing efforts.

What is Search Engine Marketing?

Search engine marketing (SEM) is a digital marketing strategy that aims to increase web traffic or improve the visibility of a website in search engine results pages (SERPs). SEM marketing is mainly related to paid search advertising but it also involves optimizing your company’s content to rank higher in search engines.

SEM marketing is crucial for local businesses because most customers search online before making a buying decision. With SEM marketing, you can target your desired audience and increase visibility on search engines by placing ads at the top of search results pages. This provides you with an edge over your competition and you win the attention of potential customers who are already looking for particular products or services you offer.

How Do SEM Marketing & Ad Auctions Work?

Ad auctions are a common SEM marketing tactic that involves bidding on specific keywords in an online auction, where advertisers aim to rank higher on the SERPs than their competitors. When a user enters a search query, a group of ads will appear based on how much the advertisers have bid on certain keywords. The ads displayed in a prominent location on the SERP are called sponsored content, which is a paid-for advertisement.

You’ve likely seen this kind of sponsored content before—it appears above or below the organic search results on Google’s SERP. The format includes a headline, URL, and a small text description that generates more clicks when targeted to the right audience. The main benefits of this kind of sponsored content are increased visibility, targeted traffic, and measurable ROI. If you have the budget, this tactic can result in excellent lead generation and conversion rates.

Ad auctions are the foundation of SEM marketing and determine how sponsored content is ranked on the SERPs. The auction process is a complex system that considers many factors to determine ad placement and cost-per-click (CPC). Here are some factors to consider if you’re planning to try your hand at ad auctions. 

1. Search intent

The intention behind a user’s search is a crucial factor in determining the most relevant ads to display. Google uses a complex algorithm to determine intent and relevance, looking at a user’s location, device type, and search history. Advertisers need to bid on keywords that accurately convey the user’s primary search intent. For example, if a user searches for “coffee near me,” their search intent is clear—they want to find a place to grab a coffee. Any ads that promote a coffee shop’s location, hours, or menu would be relevant and drive clicks.

2. Keyword competition

Keyword competition refers to the number of advertisers bidding on a particular keyword. Keywords with high competition have a higher CPC and are more challenging to rank for. For this reason, it’s important to research keywords—and the competition—to determine which words will generate leads at a reasonable CPC.

3. Keyword volume and cost

You need to evaluate the search volume of specific keywords to determine their value in an ad auction. High search volume indicates a significant opportunity for clicks and conversions, but it also means the CPC will be higher. It’s essential to find a balance between high search volume and a reasonable CPC.

To win ad auctions, you’ll need to identify your target audience, research keywords and competitors, and optimize ads for search intent. You should also monitor campaigns and adjust bids based on performance data. By mastering ad auctions, you can increase your visibility, traffic, and leads.

SEO vs. SEM Marketing: Pros and Cons

There are so many different digital marketing strategies nowadays—it’s hard to keep up. SEO and SEM are two strategies that are commonly confused with one another. While they both aim to increase website traffic, there are notable differences that you need to consider when crafting your marketing plan. Search engine optimization, or SEO, is the practice of using various tactics to improve a website’s visibility in organic search engine results pages. Search engine marketing, or SEM, on the other hand, covers all paid search engine marketing tactics that boost a website’s visibility in SERPs.

Let’s take a look at the pros and cons of each of these tactics.

SEM Pros

• Increased visibility and reach: With SEM, businesses can ensure that their ads appear in front of the right audience at the right time, increasing visibility and reach.
• Targeted advertising: SEM allows businesses to target specific keywords, demographics, geographical locations, behaviors, and other variables, which leads to more effective and relevant ads.
• Immediate results: Unlike SEO, which can take months before seeing any measurable results, SEM shows immediate results.
• Measurable and trackable: With SEM, businesses can track the success of their ads in real time and make data-driven decisions to optimize their campaigns.

SEM Cons

• Cost: SEM can be quite expensive, especially for small businesses working with a tight marketing budget.
• Ad blindness: Many consumers are becoming increasingly ad-blind and often ignore or overlook ads altogether, which leads to lower click-through rates.
• Dependency on paid advertising: Although SEM can be effective, it’s heavily reliant on paid advertising, which can make it a significant investment for businesses.
• Learning curve and time investment: SEM is a complex marketing strategy that requires a lot of time, testing, and optimization to become effective.

SEO Pros

• Cost-effectiveness: SEO is a cost-effective long-term strategy that can help businesses attract organic traffic to their websites at a low cost.
• Long-term results: Unlike SEM, which requires continuous investment, SEO can help businesses reap the benefits of their investment long after the initial work is done.
• Credibility and trust: Ranking high in organic search results signals to customers that a business is credible and trustworthy, which can lead to more clicks and conversions.
• Broad visibility: SEO focuses on long-tail keywords and phrases, which can lead to broader brand visibility in search results.

SEO Cons

• Time-intensive: SEO takes time, a lot of time. Businesses may have to wait months or even years before seeing any significant traffic or revenue increases.
• Limited control: With SEO, businesses have limited control over the factors that influence their website’s rank on SERPs.
• Competitive landscape: As more and more businesses adopt SEO as a marketing strategy, it’s becoming increasingly competitive to achieve top rankings in SERPs.
• Dependency on search engine updates: Search engines frequently update their algorithms, and businesses that don’t stay updated may see a significant drop in traffic and rankings.

6 SEM Marketing Strategy Tips and Best Practices for Local Businesses

The competition gets fiercer every day—now more than ever, it’s crucial to establish a strong digital presence and capitalize on digital marketing tactics. But with so much on your plate, that can be more easily said than done. To help you succeed in your SEM efforts, we compiled a list of six tips and best practices.

1. Conduct keyword research.

Keyword research will play into a lot of your marketing efforts—not just SEM. As such, conducting keyword research is perhaps one of the most impactful steps to achieving digital marketing success.

Start by identifying your target audience, and the keywords that they are likely to search for when looking for products or services that align with your business. Then, consider the keywords your competitors are targeting. Finally, be sure to implement your chosen keywords in both your paid and unpaid digital content, where appropriate.

Need a helping hand? We put together a checklist to guide you in the right direction.

2. Look for transactional intent.

Not all keywords are created equal, so once you’ve identified a few keywords as a starting point, it’s time to figure out which keywords will work best for your SEM efforts. While some keywords may drive traffic to your website, they may not necessarily lead to sales. This is why it’s crucial to choose keywords with transactional intent, meaning they are specific to a product or service that customers are actively searching for with the intent to make a purchase.

3. Consider cost-per-click.

Cost-per-click is the amount you pay each time someone clicks on your ad. High competition for certain keywords can drive up the cost-per-click, making it increasingly difficult for small businesses to compete with larger brands. So, when planning your SEM marketing strategy, it’s crucial to focus on keywords that have a lower cost-per-click.

Take advantage of keyword research tools like Google Keyword Planner, SEMRush, or Ahrefs to identify keywords with a lower cost-per-click and higher search volume. These tools can also provide valuable insights into your competitors’ keyword strategies, helping you refine your own approach.

4. Make your content interesting.

If you want to attract potential customers and stand out from the competition, your ads must have compelling, engaging content. To create winning ad copy, start by understanding your target audience and what motivates them. Use language that resonates with their pain points, desires, and values. Be descriptive and use powerful verbs that elicit an emotional response.

Incorporating facts and figures into your ad can also increase its credibility. Use statistics or customer testimonials to provide social proof and instill confidence in potential buyers. If you have awards or certifications, consider including them in your ad to back up your claims.

Above all, make sure your ad is easy to understand and visually appealing. Use short sentences and clear fonts. Avoid excessive use of industry jargon or technical terms that may overwhelm or confuse your audience.

5. Optimize for mobile.

Mobile optimization is a crucial aspect of SEM marketing. Gone are the days when people only accessed the internet through their desktops or laptops; more and more people are using their smartphones and tablets to browse the web, shop, and interact with businesses online.

Mobile optimization ensures that your website is responsive and can be easily accessed and navigated on smaller screens. It improves the user experience, making it easier for potential customers to find what they are looking for and engage with your brand.

And, as the cherry on top, Google prioritizes mobile-friendly websites in its search results, so a mobile-optimized site can boost your SEO efforts and improve your search engine rankings.

6. Track your results.

One of the most important metrics to track is keyword performance. By monitoring the performance of your target keywords, you can gain insights into their effectiveness and adjust your strategy accordingly. Additionally, keeping an eye on your cost-per-click metrics can help you manage your budget effectively and optimize your ad spend.

Another key metric to monitor is your conversion rate. This metric measures the percentage of users who visit your website and take a desired action, such as making a purchase or signing up for a newsletter. By tracking your conversion rate over time, you can evaluate the effectiveness of your campaign in driving user engagement and achieving your marketing goals.

Once you have gathered this data, use it. Data-driven decisions can have a huge impact on your strategy and overall success.

The 8 Best SEM Tools

While you could certainly try to get by without using any software solutions, we wouldn’t recommend it. There are so many free and inexpensive tools that will help you maximize your SEM efforts without wasting time you don’t have. Let’s take a look at eight of our favorites.

1. SEMrush

SEMrush is one of the most popular SEM tools on the market. It provides you with comprehensive SEO and PPC research, as well as competitor analysis and backlink tracking. With SEMrush, you can identify the keywords that your competitors are ranking for and use that information to develop more effective SEM strategies. The tool also provides visibility into the paid search landscape, including ad copy and landing pages.

2. Ahrefs

Ahrefs is another powerful SEM tool that you can use to track your competitors’ backlinks and improve their own SEO strategies. The tool allows you to see which keywords your competitors are ranking for, as well as the sites that are linking to them. Ahrefs also provides you with keyword research capabilities and content analysis tools to help you create high-quality content that ranks well in search engine results pages.

3. Google Trends

Google Trends is a free tool that you can use to see how search interest in your industry or product category changes over time. This information can be used to inform content creation and marketing campaigns. The tool also provides you with regional data, which can be useful for targeting ads and other marketing efforts.

4. Google’s Keyword Planner

Google’s Keyword Planner is another free tool that you can use to help identify the most relevant keywords to target in your ads and content. The tool provides information on search volume, competition, and suggested bid amounts for each keyword. This data can be used to create more effective ad campaigns and content strategies.

5. HubSpot

HubSpot is an all-in-one marketing platform that provides you with a suite of tools to manage your SEM strategies. The platform includes features such as email marketing, lead tracking, and social media management. With HubSpot, you can create and manage effective SEM campaigns across multiple channels and analyze your results in real time.

6. Podium

While Podium is not necessarily an SEM tool, it can be a game changer for your online presence, which will enhance your SEM efforts and help your business grow. Podium provides small businesses like yours with a platform to manage and respond to online reviews, as well as access to customer feedback and analytics. This information can help you identify areas for improvement and create better customer experiences, which can ultimately lead to better SEM results.

7. Moz Pro

Moz Pro is an all-in-one SEO tool that provides you with keyword research, site audits, and rank-tracking capabilities. With Moz Pro, you can easily identify technical SEO issues with your site and track your progress over time. The tool also includes a range of content optimization features, such as keyword recommendations and on-page optimization suggestions.

8. SpyFu

SpyFu is a competitive intelligence tool that gives you insight into your competitors’ SEM strategies. The tool allows you to see which keywords your competitors are bidding on, as well as their ad copy and landing pages. This information can be used to develop more effective ad campaigns and content strategies that can help you gain a competitive edge in your industry.

Improve Your Business SEO and Save Costs

To summarize, SEM Marketing is a powerful tool that can help you improve your online presence, reach more customers, and ultimately drive more revenue. While there are many different tools and strategies you can use to improve your SEM and SEO efforts, one tool that is particularly helpful is Podium.

While Podium isn’t an SEO or SEM tool, but it can be incredibly helpful for businesses looking to improve their online presence. With Podium, small businesses like yours easily gather reviews from their customers for sites like Yelp and Google Business Profile, which can help them rank higher on search engines and attract more potential customers. (Hint: Google reviews are a crucial ranking factor for business listings, so businesses that don’t prioritize reviews are likely missing out on potential customers.)

If you haven’t yet started prioritizing your online presence, it’s time to change that—and Podium is here to help. Start a free trial today and learn how you can take your business to the next level with Podium.
SEM Marketing FAQs

1. What is an example of SEM marketing?

An example of SEM marketing is Google Ads, formerly known as Google AdWords. With Google Ads, you can create ads that appear in Google searches for specific keywords. When someone clicks on your ad, you pay a fee. This fee is called a cost-per-click (CPC) and is determined by an auction system that analyzes various factors, such as the importance of your keyword, ad quality, and more.

2. What is SEM vs display marketing?

SEM marketing refers to the practice of promoting websites by advertising on search engine result pages. Display marketing, on the other hand, focuses on the placement of banner ads or graphic ads on websites and social media platforms. While SEM advertising is targeted toward users who are actively searching for specific keywords, display advertising relies on targeting users through behavioral data, such as interests and online behavior.

3. What do SEM and SEO stand for?

SEM stands for search engine marketing, while SEO stands for search engine optimization. Although they are both forms of internet marketing, they operate differently. SEM refers to the paid advertising that appears on SERPs, while SEO refers to the process of optimizing web pages to achieve higher organic rankings in SERPs.

4. Is SEM or SEO right for me?

Whether SEM or SEO is right for you depends on your business objectives and budget. If you’re looking for immediate results, SEM is a better option as it provides instant visibility. On the other hand, SEO is a more cost-effective option in the long run, as it focuses on organic traffic and increases the chances of appearing on SERPs without paying for clicks.

5. How much does SEM marketing cost?

The cost of SEM marketing depends on several factors, including keyword competitiveness, the targeted audience, geographic location, and more. On average, the cost per click ranges from $0.20 to $2. However, this can vary greatly depending on the industry and competition.

6. How can I optimize my SEM campaign?

To optimize your SEM campaign, you can target relevant keywords, write compelling ad copy, test different bids and targeting methods, and monitor your campaign performance. It’s essential to track your ad spend and ROI to ensure that you’re getting the best results. By continuously refining and optimizing your SEM campaigns, you can maximize your budget and increase your conversion rates.