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In-depth guide to search engine marketing (SEM)

Internet users from all around the world use search engines every day to learn new things, consume media, and go shopping. Search engine marketing (SEM) is a powerful marketing technique that helps make it easier for companies to get discovered on the search engine results page (SERP) and reach a larger consumer base. Most people find the information they need on the first page of the SERP, and search engine marketing helps to ensure that people are seeing your ads and web pages as quickly as possible. Even if consumers don’t end up exploring a page after discovering it on the SERP, search engine marketing is still helpful for increasing brand awareness and revenue. Learn how search engine marketing can help you achieve your business goals.

A hand with a raised finger taps on the magnifying glass icon of an illustrated search bar.

What is SEM?

If you’ve seen ads appear at the top or right of search engines, then you already know what SEM is. It is a type of marketing that involves positioning a URL or ad on the SERP to maximize traffic and increase visibility for a website. 

SEM often involves paid search, where companies pay to have their ads show up at the very top of the results page. When your ads display in these optimal, highly visible positions, your business can have an edge over your competition. Plus, most searchers only click on the first few results, which gives these premium ad spots a visual advantage to catch the attention of your future customers.

Paid search ads are typically distinguished with an “ad” designation in front of the URL. Ads may also appear as a list of product images which lead to more information about purchasing products related to the search terms that were entered. The brand is then charged when a consumer clicks on an ad, also known as pay-per-click (PPC) marketing.
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How does SEM work?

Here’s how SEM works to help your business:

 
  • People search online for a product or service
    They enter search terms (called keywords) into search engines like Microsoft Bing.
  • These searchers then find your ad
    If the keywords in your ad match a search, your ad appears next to or above the search results on Microsoft Bing.
  • Customers reach out to you
    With SEM, you can configure your ad so that people have the option to call you, visit your website, or go right to your door.
 

Check out the SEM glossary to learn some of the most commonly used terms in search engine marketing.

 

NEW TO SEARCH ENGINE MARKETING?


It takes a second to learn how to navigate the world of search engine marketing. Once you get the hang of SEM, you’ll start to see a boost in search traffic and revenue for your business. Not sure where to start? Continue reading to learn more about SEM and how your businesses can benefit from it.
 

HOW CAN YOUR BUSINESS BENEFIT FROM SEARCH ENGINE MARKETING?


Billions of people search the web every day. Search engine marketing is how you can get your ads in front of these future customers where it counts: in premium spots on the first page of search results. You set your own budget and get charged only when your ad is clicked. This makes SEM an affordable way to reach more customers for businesses of all
sizes—including yours.

Since you are busy running your business, Microsoft Advertising helps you efficiently create, launch, and manage your SEM ad campaign on the Microsoft Search Network. With Microsoft Advertising, you can reach 117 million unique desktop searchers in the US who spend 26% more online than the average internet searcher.
 

WHAT MAKES SEARCH ENGINE MARKETING DIFFERENT FROM OTHER PRACTICES?


In order to know how SEM works, it’s also important to learn about other sectors of marketing on search engines. Learn about search engine optimization (SEO) and social media marketing (SMM) and how they also work to increase website traffic.
 

SEM VS. SEO


If you have been looking into using SEM for your business, you may have also heard about the term SEO. While search engine optimization is similar to SEM, there are a few key differences that set them apart.

SEO involves finding ways to increase traffic for web pages through organic means or without paying. Organic search results are characterized as “earned” media and do not have the “ad” designation in front of them. SEO also improves the appearance of web pages on the SERP and helps increase traffic over time rather than instantly. Of course, successful SEO requires technical knowledge on how search engine rankings work.

You can watch Microsoft Advertising’s webcast on SEO practices to learn more about how to work with SEO.
 

SEM VS. SMM


Another method of web marketing is social media marketing (SMM). Social media platforms are popular among internet users and attract millions of visitors every day. Frequently visited platforms are good opportunities for businesses to garner traffic, which is why SMM is an effective way to advertise as well. Social media users can engage with ads and develop relationships with them, and social media platforms can earn money to keep them running. 

SEM and SMM are similar, but SMM is more focused on engaging with customers and gaining their trust. SMM can also only be seen on social media platforms, whereas SEM involves using search engines.

While SEO and SMM both have their own unique characteristics, using them alongside SEM can increase the effectiveness of digital marketing campaigns. Try using both practices with SEM to improve web traffic.
A woman seen from behind sits on her desk at an office and works on some graphs desktop and laptop.

Cost of search engine marketing

You control the cost of search engine marketing and pay nothing for your ad to simply appear on the search engine. Your accounts are charged if someone clicks on your ad, and only up to the amount that you agreed to for that click. That’s why SEM is also known as pay-per-click, because you only get charged for each click that your ad generates. No click? No charge.

With Microsoft Advertising, your accounts are free to set up, and billing is flexible. You choose between a prepay or post-pay option, as well as various payment methods. If you are uncertain about anything, there is free help to answer your questions before activating your campaigns. You can also pause them at any time. Remember, you’re not billed until someone clicks your ad.

SEM costs can be controlled even further with strategies in bidding and targeting.

Effective search engine marketing strategies

 

CONTROL SEM COSTS BY CHOOSING YOUR KEYWORD BIDS


Remember that users enter search words into search engines based on their interests. The matching keywords and phrases you choose for your campaigns are important for SEM, as they help determine if your ad will display when users search online. But be aware, other advertisers may also be using the same keywords. That creates competition with your ad campaign. What can you do to win? One solution is keyword bidding.

The amount you bid on your keywords helps to elevate your ad above others. So, choose a bid that you feel best represents the value of that customer to your business.

You can also control search engine marketing costs by focusing on your most relevant customers with targeting.
 

TARGET CUSTOMERS RELEVANT TO YOUR BUSINESS


You know who and where your best customers are—Microsoft Advertising lets you choose when and how to reach them. Control where your SEM ads appear by city, state, country, and worldwide. Fine-tune your targeting even further by setting the time of day to display your ads and on which devices. By targeting only your most relevant customers, you can reduce unnecessary spending on search engine marketing.

After your campaigns build some history, use reporting tools to learn which strategies work the best, then refine your targeting and other tactics accordingly. This is called optimizing your campaigns.
 

Get started with search engine marketing tools

  • Sign up for Microsoft Advertising. Signing up is free and only takes a few minutes.
  • Get free coaching for your business’s SEM. Free coaching helps set up your first ads quickly.