Search Engine Marketing (SEM) is one of the most cost efficient ways to reach a target market for a small, medium or large business. Traditional marketing such as catalog mail, trade magazines, direct mail, TV or radio involves passive participation by your audience and targeting can very greatly from one medium to another.
What is Search Engine Marketing?
Search engine marketing, or SEM, is a form of Internet marketing that seeks to promote websites by increasing their visibility in search engine result pages (SERPs) through the use of, paid placement, contextual advertising, and paid inclusion. Google the word “Car.” All of the advertisements visible on the right side and sometimes above the search results are ads that a business paid for.
Here are some of the key benefits of adding SEM to your marketing campaign.
Search delivers an active, targeted message to your online properties.
Individuals who see your SEM advertisements are actively searching for the keywords you indicated. For example, if you are in the baby carriage business, you would most likely advertise on the following keywords: Baby Carriage, Baby, Carriage, Babies, Active Baby, etc. Now if anyone searches any of the following words and you are paying enough per click, your advertisement will appear. Now here is the best part! As an advertiser, if you use the Pay-Per-Click methodology, you don’t pay unless a user clicks on the advertisement. Therefore, as a business, you only pay for people who are actively searching the key words your company selected and who found your advertisement relevant.
Search is the most popular medium for locating information.
74% of internet users perform local searches and of this percentage 82% of local searchers follow up offline via an in-store visit, phone call or purchase (TMP / comScore). From July 2007 to May 2008, Google has processed a total of 65.6 billion U.S searches. This is an average of 5.96 billion searches a month or roughly 20 million searches per month. Google represents 61.8% of search engines during this period. In other words, people are using search engines to find out about your company’s products or services.
Search Engine Marketing has one of the lowest costs per customer acquisition.
SEM is a great marketing medium and very cost effective compared with other marketing mediums. As displayed by the graph, Customer acquisition is just below $10 while direct mail is highly ineffective at around $70 per customer. Granted the cost per customer can vary drastically based on the industry but this gives a good overview of the effectiveness of Search Engine Marketing compared to other direct marketing channels.
Search Engine Marketing is a very cost effective way to grow a small business into a booming medium sized business, grow a medium sized business into a large business or increase profits for a large business. Search is the most popular medium for locating information. SEM targets the individuals who are actively seeking information on your company’s products or services and is the most cost effective way of targeting this market. If your business is not actively pursuing Search Engine Marketing, you can be sure one of your competitor is.