What is search engine marketing (SEM) and how does it work? Is it different from SEO?

 

SEO and SEM look so similar. isn’t?

This is the first question that is asked by most people when they hear the term SEM instead of SEO.

 

These people aren’t aware of the term SEM.

Are you aware of search engine marketing ( SEM )?

 

If not then don’t worry because this post is focused on Search Engine Marketing ( SEM ).

 

 

What is Search Engine Marketing ( SEM )

 

What is Search Engine Marketing

 

Ultimately, you are paying for advertising your product or services on search engine results pages like Google, Yahoo, Bing, DuckDuckGo, etc.

 

Whenever you make a search through these search engines and for most of the time the first few results are the ads.

And these ads are posted by the advertisers through Google Ads network, Yahoo Bing Ads network, and so on.

 

Google search engine result page (SERP) result

 

It’s on you to select the keywords on which you want to show ads in the search results.

 

You may think that Why Search Engine Marketing ( SEM ) is so much important.

Why people are willing to spend a lot of money on these ads.

 

You don’t want to know why people are becoming crazy about search engine marketing (SEM).

Get ready for a shock.

 

Do you know why big companies like SingleHop, Plex, Godaddy, Udemy love search engine marketing?

The reason behind this is the number of people using search engines is increasing day by day.

 

You can see the number of daily searches on Google3.5 billion, which equates to 1.2 trillion searches per year worldwide.

 

The number of daily searches on Google - 3.5 billion, which equates to 1.2 trillion searches per year worldwide.Click To Tweet

 

Live Internet users count

 

According to the statistics, Digital Ads revenue has been grown higher above 54% and $40 Billion per year.

 

Advertising revenue market share by media

Source: Search Engine Land

 

And Ads spending in the Digital Advertising market amounts to US$330,371m in 2019.

 

Advertising spendings of USA in 2019

Source: Statista

 

And do you know just itself Google has captured more than 89% of the search engine market?

 

Google has captured more than 89% of the search engine marketClick To Tweet

 

Bing comes the second with a market share of 4% and the third position is held by Yahoo with 3% and the rest share is held by other search engines.

 

Search Engine Market Shares

 

Source: StatCounter

 

By going on these data’s you have clearly understood that what will be the future of search engine marketing.

How many people are going to see your ads on the search results?

 

Global comparision on Advertisement spendings

Source: Statista

 

With a market volume of US$112,297m in 2019, most ads spending is generated in the United States.

To grow your businesses in a competitive market you need to take the help of search engine marketing and can reach the millions of customers within a few seconds.

 

No more waiting to showcase your products or services to the people around the world, you can highlight your brand in the crowd with the help of search engine marketing.

 

Bing search engine result page (SERP) ads

 

Do you think it is easy to do search engine marketing (SEM)?

Then the answer is no.

 

Search engine marketing needs strategies and techniques to run your search engine marketing campaign successfully.

In this guide, we will learn these strategies and techniques to get started with the search engine marketing campaign.

 

Today Ads cost is too much and you will never know how many customers you have grabbed and converted them into sales.

I don’t want you to lose your money just by jumping into the water without knowing how to swim. It isn’t a big risk you are taking?

 

whenever you will hear the word Search Engine Marketing or SEM then after a moment you will also listen to other words like CPC, PPC, and PPM.

 

Types of ads for search engine marketing

 

What do these words mean?

 

These are the models of advertisement of Search engine vendors like Google, Yahoo, and Bing and the platforms which help to place these ads are Google Ads, Yahoo Ads, and Bing Ads.

 

top search engines of the world

 

Each platform has its guides, biding prices, and models for placing an ad.

It’s on you which search engine and model you choose to place an ad.

 

Let’s have a quick look at these models.

 

 

Cost Per Click ( CPC )

 

Cost per click method of search engine marketing

 

CPC is an actual price you pay to these search engines for each click in your pay per click advertising campaign what you do through these platforms ( Google Adsense, Yahoo search Ads, Bing Ads ).

 

What is cost Per Click ( CPC ) advertisement

 

 

How does it work?

 

After placing an ad with the CPC model of an advertisement, after a few moments, your ads can be seen on the search results.

And from that moment, people can click on your ads.

 

Whenever a customer clicks on one of the displayed banner ads or PPC text ads that represent a visitor interaction with your product or services.

 

Yahoo search engine result page (SERP) ads

 

Every single click on the CPCC ad campaign represents the attention of the customer searching for similar products and with the motive of buying your product, he/she has been clicked on the ad.

 

And For every click on the ad, you are paying to the search engine on which this ad is placed.

 

This is what CPC is and this is the way this model of advertisement works.

Method of calculating Cost Per Click.

 

 

Pay Per Click ( PPC)

 

Pay per click method of search engine marketing

 

It is another way of doing Search Engine Marketing (SEM) to get clicks on your website.

 

Have you ever noticed whenever you make a search on Google and get a search result?

Besides all those search results you can see a box labeled with Sponsored Ads.

 

And that sponsored ads are known as the Per Per Click ( PPC ) ads done by the advertisers.

 

What is Pay Per Cick (PPC)

 

 

How does it work?

 

Whenever people click on the ad and that ad takes them to the advertiser’s website.

 

And after the customer reached the website by clicking an ad at that time the advertiser has to pay a small fee to the search engines on which this ad is placed.

 

This is how Pay Per Click works and many businesses every day start the PPC ad campaign because they know that a single click of $10 can give a profit of $100 in sales.

 

Preview of Google ads ( Sponsored Ads )

 

For example:

 

Assume for a moment that you are an advertiser and selling t-shirts through the online store.

And running PPC campaigns through Google Ads and paying $10 for a click on ads of the t-shirts shown on search results.

 

After clicking on the ad the customer is landed on your site and he/she bought a single product worth $300, then how much profit you are going to make.

 

PPC and CPC look similar, isn’t it?

 

Difference between PPC and CPC

 

Cost Per ClickPay Per Click
It is also called as CPC.It is also called as CPC.
Advertiser pays for the cost per click measured by metrics.Advertiser pays for each click on one of their ads.
Amount is not fixed for a click.Many times amount is fixed for a click.
Cost will vary based on factors like competition for the keyword and search volume.Amount will vary based on factors like competition for the keyword and search volume.
Platforms can be used for CPC ads are Google ads, Bing ads and so on.Platforms can be used for PPC ads are Google ads, Bing ads and so on.

 

 

Pay Per Mile ( PPM )

 

Pay per mile method of search engine marketing

 

It is also called as cost per thousand ( CPT ). In this model of advertisement, the advertiser has to pay for one thousand views or clicks on the ads.

 

What is Pay Per Mile ( PPM )

 

The amount of money that the advertiser has to pay for running the PPM campaign is.

Cost of an ad’s placement by the number of impressions (expressed in thousands) that it generates.

 

 

The formula for calculation of the PPM ad campaign.

 

Assume that you are running a PPM campaign of $10,000. And the total estimated audience is 12,00,000 peoples.

 

PPM will be calculated as follows.

 

step1:  cost on ads as per person

$10,000 x 12,00,000 people = $0.00833

 

step2:  cost of PPM

$0.00833 x 1000 impression = $8.33 ( This is the amount you have to pay to show your ads to 1,000 peoples on the search results. )

 

 

Conclusion:

 

After going through each line of this article I am full of confidence that you have learned the basics of Search engine Marketing ( SEM ) and don’t ever get confused between the SEO and SEM.

 

And you also know the different models of doing Search Engine Marketing ( SEM ) campaign through Google Ads or other different platforms.

 

Fell free to share your thoughts in the comment box below and let me know which model do you like the most CPC, CPM, or PPM.

 

Do you like SEO for getting Organic traffic to your website or like to run paid Advertisement?