SEM, or search engine marketing, is a form of online marketing that focuses on increasing visibility in search engine results pages (SERPs). SEM is important because it helps you reach prospective customers actively searching for your product or service.
Unfortunately, many companies waste their SEM dollars by not understanding how to use the tool properly. In this article post, we'll discuss common ways companies misuse their SEM dollars and what you can do to avoid making the same mistakes.
What is SEM?
SEM, or paid advertising on search engines, is an effective way to reach out to potential customers actively looking for products or services like yours. SEM auctioning is the process by which search engines like Google determine which ads to show and in what order. The SEM auctioning formula factors in three main factors: ad quality, ad bid, and the searcher's history. Ad quality is based on click-through rate and relevance, while ad bid is simply the amount you're willing to pay per click. Finally, the searcher's history includes past searches and clicks, their location, and the time of day. By considering all of these factors, SEM auctioning gives you a fair chance to have your ad seen by relevant searchers. As a result, SEM can be an effective way to reach out to new potential customers.
Where most marketers go wrong in SEM
1. Not Defining Goals and Objectives
Before any marketing campaign, it's essential to define your goals and objectives. What are you hoping to achieve with your SEM campaign? Is it brand awareness? Leads? Sales? Once you know your goal, you can develop a plan to help you achieve it. Without a goal, your SEM campaign will likely be a wasteful endeavor.
2. Not Researching Keywords
Another way companies waste their SEM dollars is by failing to research keywords properly. Not all keywords are created equal; some are more valuable than others. The most valuable keywords are relevant to your product or service and have a high search volume but low competition. These keywords will help you get the most bang for your buck.
3. Bidding on Irrelevant Keywords
Bidding on irrelevant keywords is another common mistake companies make with their SEM campaigns. Just because a keyword has a high search volume doesn't mean it's relevant to your business. If the keyword isn't relevant, you're likely to get many clicks but few conversions. That's why it's essential to carefully research keywords before bidding on them. Only bid on keywords relevant to your business that you think will result in conversions. If you don't talk about it on your website, don't bid for it. You'll be lighting money on fire.
4. Not incorporating geographical boundaries
The place where I see the most SEM waste is not defining a location for your target ad. One company I evaluated was paying $1,000k in SEM spend in a country they cannot do business. If you don't narrow your location, you're wasting SEM money. SEM is most effective when it's targeted to a specific geographic area. Otherwise, you're simply paying for ads that your target audience may never see. Location-based targeting allows businesses to target users who are located within a certain area specifically. This can be useful for companies that only serve a local market, as it ensures that their ads will only be seen by potential customers who are actually located within their service area. Additionally, location-based targeting can also help to improve ad relevance, as ads that are targeted to users who are located nearby are more likely to be relevant to their needs and interests.
SEM is an important tool for any business wanting to increase its online visibility. However, many companies waste their SEM dollars by making common mistakes such as failing to define goals and objectives, failing to research keywords, and bidding on irrelevant keywords. By avoiding these mistakes, you can ensure your company's SEM campaign is effective and successful.
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