Search engine marketing increases traffic on the website by increasing its visibility on SERP. It is a paid digital marketing process that involves website optimization. In SEO it is an unpaid, keywords ranking is increased through on-site optimization and link building. But if we talk about SEM, it involves on-site optimization and bidding for campaigns. If you noticed on the webpage, paid ads are shown on the top with a mark “Ads” on them which shows that they are paid results. When a user search for a keyword on search engine paid ad usually appears on top of search results. The main advantage of SEM is that it gives instant results, but if we talk about SEO it usually takes 3 -6 months to show results. For example, Christmas is coming next week and you want to sell cake on Christmas and in this case, you cannot wait for 3 to 6 months for a keyword to rank. Here SEM with being the best strategy to ranks instantly on the SERP so that the maximum number of viewers can visit your site.
So above are the paid Ads, it can be seen that sign of ‘Ad’ is mentioned at the top left corner of the advertisement.
You can run these paid ads on different search engines like Google, Bing, and other search engines. Paid Search engine marketing includes the following terms:
PPC (Pay Per Click)
PPC or Pay Per click is a Search engine marketing mechanism, in which the advertiser pays a fee each time when his advertisement is clicked. This way the advertiser can get a click on his website by paying a fee to the search engine.
CPA (Cost Per Acquisition)
Cost per acquisition is the process to monitor the cost spend in buying paid ads and the number of sales generated from that investment i.e. total cost spend in the campaign/ number of conversions. This way you could easily track how much profit or loss you are getting in your campaign investment.
CPC (Cost Per Click)
Cost per click is the cost of the click you pay in your pay per click campaign. PPC and CPC are the same terms in advertisement. PPC is the type of campaign, in which advertisers pay according to the click and CPC is the cost spend in that click.
CPM (Cost Per thousand)
CPM stands for cost per thousand; it means what is the cost of a thousand impressions. For example, Suppose publisher is charging $3 cost per thousand (CPM), this means when you pay him $3 he will show a thousand impressions of your advertisement on his website.
CTR (Click-through rate)
CTR measures the number of times your website shown on the search engine and number of viewers clicked on it. Several factors impact the CTR like the position of the advertisement, keywords on which it is appearing, its layout and imagery
So, these are some commonly used terms in paid marketing that are used in running the advertisement and measuring the ad performance. By monitoring the ad performance, you can decide which type of paid marketing and how much investment is beneficial for your business.