SEM
SEM, under which companies can target customers by placing advertisements on search engines, has been a highly effective strategy for acquiring audiences. In contrast to other forms of online advertising, advertisers only pay when a user clicks on the advertisement.
With successful execution, SEM can deliver consistent traffic levels and an amazing return on investment. As more companies use SEM, the competition level is making bid prices skyrocket. It has become impossible for most advertisers to pay for bidding on the most searched words. They have to stretch their campaign across multiple search engines and tens of thousands of keywords. Advertisers are also confronted with the problem of lost clicks the disparity between what they pay for and what their Web site gets, and these are frequently the consequence of click fraud. Despite these challenges, SEM can return more investment than other forms of marketing and needs to be a component of any advanced advertising program.
Both ad campaigns, SEM, advertisement, SMO, digital agency most commonly share two general goals brand building and direct response. Choosing an efficient marketing vehicle hinges on how the biggest ROI can be given. Companies who sell goods and services on the Web can benefit from Web advertising since their potential clients already reside on the Net. Businesses that do not deal in anything via the web may utilize the Net to extend their reach and enhance the image of the brand.
Strategies
Online companies have numerous audience acquisition strategies to select from, such as opt-in, viral, banner advertising, SEM, and pay-per-click keyword promotion. Opt-in promotion allows users to subscribe to a service, such as an e-mail group or newsletter. Viral promotion is leveraging word of mouth to acquire exposure to a product or service. Banner ads are text or media advertisements on a Web site that link to other Web pages. Search marketing, SEO, SEM, SEMM, SMO, also known as search engine optimization, is a process of writing or rewriting a Web page in such a way that it will be more relevant than other pages to the search engines.
This study is centered on SEM, also known as keyword marketing or pay-per-click promotion. This method enables advertisers to bid on specific keywords or phrases and have their ads appear. Up along with the natural search engine listings. Advertisers who opt for an SEM approach to their marketing mix might do so for a variety of reasons.
Competition
Growing competition in SEM is making it all but impossible for low-budget advertisers to achieve top rankings. The Atlas Institute released a report last September that examined the effect of paid search engine ranking on traffic. The research revealed that traffic declines with rank and eliminated the myth that so long as an ad remained in the top three positions it would get comparatively equal traffic.
Though your sales might be saving you 10 percent less by holding the third rank, SEM, SEO, SEM company, digital marketing, ads campaign, SEM search engine you might be losing almost half of the customer acquisitions. This is the reason that running a PPC campaign becomes primarily a cost decision. The top spot for a particular keyword could be $5 per click, and the third spot is $4.50. The third-position advertiser pays 10% less than the top advertiser but could get 50% less traffic.
Marketers need to consider their ROI and determine whether the increase in traffic will be worth the price increase. A company attempting to enter this market for the first time is going to struggle if it lacks a big enough advertising budget to bid on the most searched-for words. Issues Search marketing is so unstable today that even the news is precipitating bidding wars in some sectors. Friday, Oct. 1, 2004, the day after Merck pulled Vioxx off the market for arthritis, searching for the phrase on the major search engines listed ads from three law firms soliciting representation of consumers injured from taking the medication.
The winning bid for position one on Yahoo! was $2, and a week later jumping to almost $16. A one-established law firm started bidding on Vioxx and associated keywords for $2 on October 1, 2004 and ultimately had to suspend the campaign after $5,000 was spent evaluating prospects. The campaign was such a success that the firm’s site saw 25 times the usual daily traffic. Competition of this sort often leads advertisers to seek out the smaller search engines, which will have lower CPCs than the market leaders. The SEM compensate their partner Web sites a percentage of the revenues for each time that an ad has been clicked.
In many cases, the advertisers are not even aware of the sites where they are appearing. Most of them feel a disparity between the clicks purchased and clicks the Web site logged lost traffic, which in many cases is due to click fraud. Competitor fraud, where competitors execute programs that repeatedly click on competing ads advertiser sponsored links to exhaust their daily ad budget, or affiliate fraud, where affiliates use similar programs that repeatedly click on a link to maximize their pay, are the two principal forms of click fraud, Click, a Web analytics provider, says.
Conclusion
In summary, this study verifies that SEM has grown. Today more Americans than ever before use search engines to travel the Web, and pay-per-click ads comprise one-third of total Web-based advertising spend. Due to so much rivalry over top word terms, few advertisers can’t manage premium space on the biggest search engines.
Advertisers can be forced to go to second-tier search engines in hopes of finding better placements and higher ROI. Smaller engines have lower bid costs but are frequently plagued by the issue of click fraud, where competitors or affiliates manually click on ads themselves, either padding a competitor’s ad expense or driving up their pay. Click fraud is extremely hard to spot, and the ideal solution is the use of sophisticated software systems that monitor where incoming clicks originate. Despite these hurdles, an SEM campaign, well executed, has demonstrated that it must be a cornerstone of any well-crafted interactive marketing program.