What is SEM?
SEM stands for Search Engine Marketing and is a key aspect to digital marketing and advertising online. The marketing technique SEM is used to increase a company’s visibility in search engines through two different methods called CPC (sometimes referred to as PPC) or CPM.
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CPC vs. CPM
CPC stands for Cost Per Click and CPM stands for Cost Per Mille. Here is some of the key differences between the two.
CPC
- is a type of advertising where the advertiser pays per click and not the impression
- measured by looking at the number of clicks
- also referred to as PPC = pay per click
- usually a bidding process for search engines
CPM
- is a type of advertising where the advertiser pays per 1,000 impressions (mille stands for 1,000)
- measured by looking at the number of impressions
- impressions = a view
- is an alternative to CPC
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Ads
SEM uses CPC or CPM for the ads they post. When writing ad copy it is important to keep in mind the 3 key elements of ads. These 3 elements are key words for relevance, unique value proposition (UVP) and a call to action (CTA). If you include these 3 elements in your ad it will help you to generate way more traffic to your company’s website.
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Ad Ranks and Auctions
Ad ranking is usually based on an auction bidding system. The system includes 3 players: the user, the advertiser, and google. When entering into the auction, google looks at two key factors to determine where your ad ranks, which is your maximum bid and your quality score. Your quality score is comprised of your expected click through rate, landing page experience, and ad relevance and your maximum bid is how much you are willing to pay, or your CPC, for your ad to be clicked on. Your ad rank equals your CPC bid multiplied by your quality score. Whichever advertiser has the best combined CPC bid and quality score gets the highest rank.
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