There are many reasons explaining why advertisers choose the SEM strategy. First, creating a SEM account is easy and can build traffic quickly based on the degree of competition. The shopper who uses the search engine to find information tends to trust and focus on the links showed in the results pages. However, a large number of online sellers do not buy search engine optimization to obtain higher ranking lists of search results, but prefer paid links. A growing number of online publishers are allowing search engines such as Google to crawl content on their pages and place relevant ads on it.[16] From an online seller's point of view, this is an extension of the payment settlement and an additional incentive to invest in paid advertising projects. Therefore, it is virtually impossible for advertisers with limited budgets to maintain the highest rankings in the increasingly competitive search market.
Billions of people search the web every day. Search engine marketing (SEM for short) is how you can get your ads in front of these future customers where it counts: in premium spots on the first page of search results. You set your own budget and are charged only when your ad is clicked. This makes SEM an affordable way to reach more customers for businesses of all sizes — including yours.
Essentially, what distinguishes direct from organic traffic today is tracking. According to Business2Community, direct traffic is composed of website visits which have “no referring source or tracking information.” A referring source can be a search engine, or it can be a link from another website. Direct traffic can include visits that result from typing the URL directly into a browser, as the simple definition suggests.
You can then use the Data Cube to uncover topics relevant to prospects later in the buyer’s journey, such as your brand versus a competitor or case studies illustrating the value you provide for customers. Since your organic search research will help you understand what people are interested in reading, your emails will be more targeted and helpful, boosting your success rates.
In 2007, U.S. advertisers spent US $24.6 billion on search engine marketing.[3] In Q2 2015, Google (73.7%) and the Yahoo/Bing (26.3%) partnership accounted for almost 100% of U.S. search engine spend.[4] As of 2006, SEM was growing much faster than traditional advertising and even other channels of online marketing.[5] Managing search campaigns is either done directly with the SEM vendor or through an SEM tool provider. It may also be self-serve or through an advertising agency. As of October 2016, Google leads the global search engine market with a market share of 89.3%. Bing comes second with a market share of 4.36%, Yahoo comes third with a market share of 3.3%, and Chinese search engine Baidu is fourth globally with a share of about 0.68%.[6]

Great analysis and tips, Rand. Your first tip was to focus on branded search... but when it comes to small-medium businesses, there's a limit on how much brand search-demand one can produce. Are you saying that google search will eventually become an engine made only for entities/businesses we already know of? Where does that leave the whole discovery process?

Well, yes and no. Sure, you can get hit with an algorithm change or penalty that destroys all your traffic. However, if you have good people who know what they are doing, this is not likely to happen, and if it does, it is easy (in most cases) to get your visits back. Panda and Penguin are another story, but if you get hit by those it is typically not accidental.
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