What Is Paid Search?

Paid search is paying for ads that appear on search engine results pages (SERPs). Each time a user clicks on an ad, the business pays the search engine provider a set fee. This is pay-per-click, or PPC, advertising. While PPC ads are available on social media platforms, paid search specifically refers to ads placed on search engines like Google or Bing.

When someone enters a phrase into a search engine, the results displayed to them are typically a mix of paid search results and organic results. Paid search results appear at the top of the SERP, while organic or non-paid results appear beneath. 

Why is paid search important?

Paid search is essential to a successful marketing strategy because it provides insight into customer behaviour that’s difficult to learn otherwise. You can track each customer’s engagement from the initial click-through to a final sale with paid search ads. This information is key when setting up future ad campaigns since you’ll have concrete data about which keywords or copy were the most successful.

Types of paid search

You can choose from various types of paid search ads. The three primary options include the following: 

• Local ads: Designed for businesses with physical locations. These ads display contact information, addresses, and reviews to strengthen a local presence.

• Text ads: Appear at the top of a SERP, including URLs and simple copy. They may also appear at the bottom of a search results page.

• Shopping ads: Designed for products and typically include images and purchase information as part of the ad.

Quality scores in paid search

Once you design an ad, the search engine creates a quality score. This score considers the ad's relevancy to the keywords used, the value of the landing page the ad leads to, and the expected rate at which customers will click through. Google uses this score to assign how much a business pays each time someone clicks on the ad. It also determines where the ad ranks amongst the other paid search results; ads with higher quality scores rank toward the top of the results.

When creating ads, know your target audience so you can be in tune with what they are specifically looking for. This insight helps you choose relevant keywords and provide customers with true value when they click on your ad. Targeted, well-researched ads increase your ROI and conversion rates, potentially resulting in higher profits and customer retention.

Related terms

• Search engine results pages (SERP)

• Click-through rate

• Bounce rate

• Product marketing

Learn more about paid search on Coursera.

Paid search is a vital marketing strategy that provides valuable insights into customer behaviour and helps you track your ads’ effectiveness. As a digital marketer, you’ll rely on this as one of your strategies. Learn more about this and other digital marketing practices on Coursera with Google’s Digital Marketing and E-Commerce Professional Certificate. You can learn the skills needed to begin your marketing career in about six months.