Search Engine Marketing: SEM Basics for Beginners

SEM is an internet marketing strategy that uses both paid advertising and search engine optimization (SEO) techniques to increase the visibility of a website on search engine results pages (SERPs). Using this method, marketers promote targeted content to a specific base of consumers to drive web traffic and convert viewers into paying customers. Considering 15.2 percent of all retail sales occurred online in the second quarter of 2024, according to the US Department of Commerce [1], SEM stands as an important way for retailers to catch the attention of target consumers and be the answer to their search queries.

To ensure content reaches target viewers, marketers optimize it around specific keywords and phrases relevant to the services or products promoted in the ad, a process called SEO.

Marketers using SEM only pay when someone clicks on their ad, a model called pay-per-click (PPC) advertising. PPC is cost-efficient, as marketers only pay if the ad is clicked. Using PPC helps marketers get the most value from their marketing budget dollars. 

Major PPC marketing platforms like Google Ads and Microsoft Ads use the auction system to rank content on the search results page. This system considers factors like the quality of the ad and the bid price. 

SEO is not the same thing as SEM; it is a part of SEM campaigns. SEM uses SEO and pay-per-click (PPC) methods to reach target consumers. Please keep reading to discover search engine marketing, including its use cases and how SEM works.

What is search engine marketing used for?

Search engine marketing helps improve a website’s ranking and position on SERPs to boost visibility and attract individuals ready to purchase. As a marketing strategy, SEM drives qualified web traffic and boosts sales. SEM helps marketers meet marketing goals focused on increasing web traffic and sales since it is a targeted approach that allows companies to deliver ads to a specific group of people considered ideal buyers for that company’s product or service. 

Types of SEM

SEM falls into several categories, including the following:

• Local: Focuses on getting your website to appear at the top of Google map results.

• Voice: Optimization of data to improve chances of appearing in voice search results

• Image: Ensures images on a site appear in specific image searches or reverse image searches

• Shop: Focuses on placing ads that appear in related shopping results or product pages

• Social: Pushes information out to users actively looking for what you offer through social media.

SEO vs. SEM

SEO and SEM have similar goals, as both aim to drive traffic to your website and convert customers. However, SEO aims to optimize content for specific keywords so that it has a better chance of reaching target consumers, whereas SEM focuses on targeted ads. Unlike SEM, marketers don’t pay for SEO but organically create optimized content that uses search engine algorithms and rankings to find consumers. 

How SEM works 

SEM uses PPC advertising and optimized content to deliver ads to a specific group of individuals. As a marketer selling a product or service, the goal is to optimize your ad content so that when someone searches terms or keywords related to your goods or services, your ad appears as the solution to their question or search query. 

PPC helps companies get high-quality content to their ideal consumers by allowing marketers to bid on specific keywords or phrases that someone might search for when looking for a product or service in which the company could offer a solution. For example, you choose a keyword to trigger an ad and set the maximum bid you’ll pay for that term. If your bid is one of the top bids and your quality score (quality of content, landing page, etc.) is sufficient, your content has a greater chance of appearing higher up in the SERPs when someone searches for that keyword or phrase. You’re bidding on a chance for the search engine to show your ad, and this process repeats every time a search for the keyword or phrase occurs until you’ve reached the set amount you’re paying for each click. 

The following are examples of metrics that help you monitor the success of marketing campaigns and make tweaks as needed:

• Click-through rate (CTR): How many times people clicked on your ad compared to how many people saw your ad

• Impressions: How many times your ad displayed

• Conversions: How many times people made a purchase or another desired action, such as a download or a free subscription 

Ad auctions

Ad auctions are the process search engines use to determine PPC ads' ranking, or position, on SERPs. However, it’s not a one-time, set process. Each time a search occurs in which your ad content is eligible (meaning keywords that match your ad content), the ad auction process happens again. The ad auction considers several factors beyond your bid amount when determining which content to rank. Ad quality, format, and the individual’s search query context are also considered. And your ad may not always appear in the same place. Fluctuations in your potential competitors’ rankings can also impact your own rankings.  

The process is similar for most search engines, but the price you pay per click will likely vary by your search engine. Typically, less popular search engines like Yahoo cost less to purchase PPC ads than more popular engines like Google. 

Keyword research

Keyword research is an integral part of SEM. Conducting keyword research helps you identify what search terms are likely to trigger your ad. You can choose very specific keywords and phrases such as “casual tan size three kids shorts” or more broad keywords like “kids shorts.” 

Sometimes, companies will add popular brands to keywords to better target the highest possible search intent of its target consumers. Using the same example with kids’ shorts, maybe you include the phrase “Walmart kids shorts.” Adding branded terms like “Walmart” to your phrase increases the chance of reaching people searching for similar items. Your item may not be the exact match to their search query, but you do sell a closely related item that they might consider purchasing.

Marketers also consider negative keywords, or excluded keywords. These terms or phrases unrelated to your product or service will not trigger your ad when searched for with any combination of your selected keywords or phrases. To choose the best negative keywords, search for similar terms to your keywords and note any similarities that don’t match what you’re selling or offering. The purpose of negative keywords is to more closely tailor your content to your target consumer, making the most of your marketing efforts and budget. 

Consider using keyword tools to aid in your keyword research efforts. Some keyword tools are free; others require a subscription or payment of some kind. Depending on the site, marketers can access trending keywords, specific industry keywords based on their product or service, and other helpful tools for keyword research. You can choose from some of the following options: 

• Semrush: Free to try, three membership options after the free trial 

• Moz: Free to try, four membership plans to choose from after a 30-day free trial

• Google Trends: Free to use

• Serpstat: Free seven-day trial for lower level memberships, four membership plans to choose from

Keyword cost

Some popular keywords cost more than others due to their high demand from other marketers in your industry. Expect to pay more for keywords with a greater search volume. 

The average cost per click on Google Ads varies by keyword popularity, industry, country, market trends, and other factors. According to Statista, the average monthly cost per click for all industries in the US is $1.99 as of May 2023 [2]. The average price in the online education industry is $9.95 [3], however, $6.56 in the marketing and advertising industry [4], and $0.68 in the electronics industry [3].

Targeting

Targeting helps marketers using SEM to more accurately identify their ideal audience using criteria that include location, interests, buying behaviors, income, and other demographics. Targeting aims to get content in front of the right person at the right time. As a customizable component of SEM, targeting helps marketers maximize their efforts by allowing for more tailored, personal, and relevant messaging. The result? Greater chance of conversion and reduced cost for acquiring each customer. 

To target your ideal audience, look at your current customers and identify trends. Analyze demographics and gather research about your current and ideal customers. Conduct market research where your ideal customer lives, their age, interests, occupation, etc., and create buyer personas based on this data. Set your targets accordingly for the best results. 

Some ways marketers use targeting include: 

• Setting up geo-targeting to target individuals based on location

• Using Smart Lists on Google Analytics for remarketing based on past conversions 

• Creating different behavior-driven personas to target specific behaviors of ideal customers 

Read more: What Is SERP (Search Engine Results Pages)?

Who uses search engine marketing?

Any company with a website where individuals can buy a product or service can use search engine marketing to help locate consumers and close sales. Many marketing professionals in PPC advertising work for a marketing agency or in-house for a company. Many may also do freelancing work. Marketers specializing in SEM may work as marketing managers or under other titles, such as PPC specialists, paid search analysts, or SEM specialists. 

The largest employers of marketing managers and marketing specialists, according to the US Bureau of Labor Statistics, include [5]: 

• Advertising, public relations, and related services

• Professional, scientific, and technical services 

• Information

• Finance and insurance 

• Management of companies and enterprises

• Wholesale trade

• Manufacturing  

• Self-employed workers

Pros and cons of using search engine marketing

Before using SEM as an internet marketing strategy for your marketing campaigns, it’s helpful to consider both the benefits and drawbacks of the strategy. SEM has the potential to increase web traffic and boost sales in a short period of time, but it does require smart budgeting and attention to metrics to ensure you stay within your marketing budget and get the most out of your SEM efforts. 

Pros 

Digital marketing professionals find many benefits of SEM in their endeavors. SEM is measurable, targeted, and efficient, making it a well-rounded and effective approach for companies looking to convert consumers to paying customers. When a smaller company is just getting started, SEM has the potential to increase visibility and introduce the brand to target consumers via SERPs.

Other benefits of using SEM include: 

• Effective strategies for driving web traffic 

• Better ad positioning on SERPs 

• Measurable 

• Easy to get started

• Applicable for many different industries, products, and services 

• Helpful in building a larger customer base

Cons 

While SEM is a highly effective method for targeting a marketer’s ideal consumer, it may not be the most effective method for everyone. Some drawbacks include the need to manage ads and keywords, as well as the cost per conversion. To get the most out of your PPC efforts when using SEM as a marketing strategy, you may want to consider the possible cons of this approach to better prepare for the most effective digital marketing campaigns.

Read more: What Is an SEO Consultant and Do You Need One?

How to get started in SEM 

To start your career in SEM as a search engine marketing specialist or marketing manager, you may want to gain professional experience in entry-level positions like digital marketing coordinator, content marketing manager, or social media manager. You can also build key skills and learn SEM best practices through online courses, professional experiences, and a degree program. 

Some of the most common skills for search engine marketing include:  

• Keyword research 

• Digital marketing 

• Paid search

• Google Ads

• Google Analytics 

Search engine marketing specialist is a mid-level position that often requires four to six years of professional experience and a bachelor’s degree in a related field such as computer science, business, or marketing.  A marketing manager is a management-level position with similar qualifications and professional experience requirements. 

To start your path to an SEM specialist or marketing manager position, start by earning your degree, gaining professional experience, building your skills through online courses or internships, and then applying for the position in SEM you want. 

Read more: How to Learn SEO: A 2024 Guide

SEM best practices

When starting in search engine marketing, it’s helpful to learn and adhere to some SEM best practices. Understanding the most effective and efficient ways to launch a PPC marketing campaign helps you, as a marketing professional, maximize your efforts while staying within your marketing budget. SEM best practices include conducting market research on your target demographic, identifying the best keywords, optimizing content for better rankings on SERPs, and knowing your competitors and how those brands meet consumer needs. 

Some additional SEM best practices to learn and build include the following: 

• Build highly specified and dynamic buyer personas. 

• Choose the right keywords.

• Write strong SEO copy. 

• Analyze competitor ads.

• Use the right metrics to assess campaign success. 

• Optimize landing site for mobile. 

Getting started in search engine marketing with Coursera

SEM is an effective marketing strategy for building your brand's visibility and generating awareness. With the right keywords and strategy, you can bring more potential customers to your website and appear closer to the top of search engines.

Discover more about the world of search engine marketing with Google Digital Marketing & E-Commerce Professional Certificate on Coursera. Understand the fundamentals of digital marketing you’ll likely need to gain entry-level positions in search engine marketing. Explore how to build a loyal customer base and use metrics and analytics to measure digital marketing performance and efforts. Enroll today and start or enhance your career in search engine marketing.