Why is it Important to Invest in Paid Search?
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With more marketing channels now than ever before, businesses are constantly seeking effective ways to reach their target audience and convert them into loyal customers. One such strategy that has proven to be highly effective is paid search marketing. But what exactly is paid search and why is it important to invest in it? Let's delve into this topic.
What is Paid Search?
Paid search, commonly known as pay-per-click (PPC) advertising, is an online marketing strategy in which advertisers pay for their ads to be displayed across search engine results pages (SERPs) like Google and Bing, as well as on affiliated websites, social media platforms, and apps within these networks. While the traditional model involves charges per click, modern bidding strategies also include options based on impressions, conversions, and other performance indicators, allowing advertisers to optimize their campaigns according to specific goals.
Organic Search vs. Paid Search: What’s the Difference?
Paid search and organic search (SEO) are two distinct strategies used in online marketing to increase website visibility and drive traffic.
Paid search, as previously mentioned, involves advertisers paying a fee for the ad placements. These ads are prominently displayed at the top or bottom of search engine results pages (SERPs) and are labeled as sponsored content. The positioning of these ads depends on various factors, including the bid amount the advertiser is willing to pay per click or conversion and the relevance of the ad to the user’s search query.
In contrast, organic search refers to unpaid (hence, “organic”) search results that appear in SERPs based on their relevance to the user’s search. These results are ranked according to a search engine's algorithm, which evaluates factors such as the quality and relevance of the website's content, the number of inbound links, and the overall authority of the site. Although achieving high organic rankings can require significant time and effort, these results typically foster greater trust among users and can provide a consistent flow of traffic over time.
It is also important to recognize the significant changes in the SERP landscape brought about by advancements in AI technology. These innovations have transformed how search results are displayed and interacted with, introducing features like AI-generated summaries and enhanced snippets that can change user behavior and expectations.
In essence, paid search offers immediate visibility and highly targeted traffic, while organic search serves as a longer-term strategy that builds credibility and yields sustainable results. Together, both strategies are vital components of a comprehensive digital marketing plan.
Benefits of Paid Search
1. Immediate Visibility
Setting up your Google Ads or Microsoft Ads accounts takes time and expertise to effectively target the right audience with compelling ads and landing pages. However, once your PPC campaign is live, your ads can appear in search results almost instantly, providing your audience with immediate exposure to a targeted audience. This visibility can be important if you don’t rank organically for important non-branded keywords that can drive leads or sales. Even if you do rank organically, having ads for the same keywords can enhance click-through rates (CTR), resulting in increased traffic and conversions. Additionally, Google Display advertising allows for visibility through banner ads on various sites beyond Google’s search engine, further amplifying your brand’s presence.
2. Targeted Advertising
Paid search enables you to target your campaigns based on specific demographics, interests, locations, and times of day. This tailored approach increases the likelihood of conversions by reaching the right audience at the right moment. Paid search platforms like Google and Microsoft Ads also facilitate remarketing, enabling you to re-engage users who have previously interacted with your website. Continuous optimization of your paid search campaigns can refine your targeting, resulting in higher CTRs and conversion rates. This can lead to an increase in Quality Score, which can in turn lead to a reduction in costs.
3. Measurable Results
One of the key advantages of paid search is the ability to track and analyze every aspect of your campaign–from clicks and impressions to conversion rates and cost per click to the queries that your ad appears for. This data provides valuable insights into what is effective and what needs adjustments, allowing for ongoing optimization of your campaigns. Linking your Google Ads account to Google Analytics enables thorough tracking of your digital marketing efforts, ensuring transparency and accountability when collaborating with a digital marketing agency. Importantly, this tracking allows businesses to determine return on investment (ROI) and cost per customer acquisition (CPA).
4. Competitive Advantage
Investing in paid search can provide you with a significant competitive advantage, especially if competitors are not leveraging paid search. Even if they are, a well-optimized PPC campaign can help you outperform them in search results.
For newer businesses entering established markets, paid search often serves as the initial digital marketing strategy due to its cost-effectiveness in driving traffic, leads, and sales to a website.
5. Increased Brand Awareness
Even if users do not click on your ads, seeing them in search results can increase brand awareness. This is particularly beneficial for new businesses aiming to establish a market presence. Since Google and Bing typically charge on a CPC basis, you only pay per action taken. These benefits are important if you are trying to advertise your local business with paid search or a regional, national, or even international brand.
6. Flexible Budgeting Options
Paid search allows for flexible budgeting, enabling businesses to set daily or monthly limits based on their marketing goals. This flexibility helps manage costs effectively while providing the opportunity to adjust spending based on campaign performance. Businesses can easily scale their budgets up or down in response to market conditions or business needs.
6. A/B Testing Capabilities
Paid search platforms allow you to conduct A/B tests on different ad components, including headlines, descriptions, and call-to-action buttons. This testing helps you determine which variations yield the best performance, optimizing your campaigns for maximum effectiveness and enhancing overall ROI. Furthermore, these insights can be shared with your SEO team to improve organic search performance.
Why is Branded Paid Search Important?
Bidding on your brand name in paid search is a strategy that can yield significant benefits. While it may seem counterintuitive to pay for clicks on your brand name, especially if you already rank organically for these terms, there are several compelling reasons to incorporate brand terms in your PPC strategy.
Control the Narrative: Bidding on your brand names allows you to shape what searchers see in your ad copy. This is particularly useful for promoting special offers, unique selling propositions, or other key messages that may not be immediately visible in your organic listings.
Protect Against Competitors: If you're not bidding on your brand name, you leave the door open for competitors to do so. This means that a search for your brand could lead to a potential customer encountering a competitor's ad before seeing your organic listing. By actively bidding on your brand name, you can capture a greater share of your branded traffic.
Higher Quality Scores: Brand terms typically see higher Quality Scores due to their relevance. This means that brand campaigns often deliver a strong return on investment, driving high-quality traffic to your site at a relatively low cost.
If you’d like a deeper dive, here are 6 benefits of running search ads for brand keywords.
Getting Started in Paid Search Marketing
Investing in paid search can provide numerous benefits for businesses of all sizes and industries. It provides immediate visibility, targeted advertising, measurable results, a competitive advantage, and increased brand awareness. However, like any digital marketing strategy, it requires careful planning and management to ensure a strong return on investment.
If you have an existing Google or Microsoft Ads account and are uncertain about your return on investment or you're brand new to PPC and would like to speak to a member of our team, you can start here. We are a digital marketing agency specializing in paid search, and we offer free consultations and account reviews to help you optimize your search strategies.
This blog post was originally published on June 12, 2023, and was updated and republished on October 8, 2024.
