Search engine marketing
Encyclopedia
Search engine marketing, (SEM), is a form of Internet marketing
Internet marketing
Internet marketing, also known as digital marketing, web marketing, online marketing, search marketing or e-marketing, is referred to as the marketing of products or services over the Internet...

 that seeks to promote websites by increasing their visibility in search engine
Search engine
A search engine is an information retrieval system designed to help find information stored on a computer system. The search results are usually presented in a list and are commonly called hits. Search engines help to minimize the time required to find information and the amount of information...

 result pages (SERPs) through the use of paid placement, contextual advertising, and paid inclusion. Search engine optimization
Search engine optimization
Search engine optimization is the process of improving the visibility of a website or a web page in search engines via the "natural" or un-paid search results...

 (SEO) "optimizes" website content to achieve a higher ranking in search results, for example, by incorporating specific keywords or links associated with the website. Depending on the context, SEM can be an umbrella term for various means of marketing a website including SEO, or it may contrast with SEO, focusing on just paid components.

Market structure

In 2008, North American advertisers spent US$13.5 billion on search engine marketing. The largest SEM vendors are Google AdWords, Yahoo! Search Marketing
Yahoo! Search Marketing
Yahoo! Search Marketing is a keyword-based "Pay per click" or "Sponsored search" Internet advertising service provided by Yahoo!.Yahoo began offering this service after acquiring Overture Services, Inc....

 and Microsoft adCenter
Microsoft adCenter
Microsoft adCenter , is the division of the Microsoft Network responsible for MSN's advertising services. Microsoft adCenter provides pay per click advertisements. This is a service aimed at people who want to advertise a product...

. As of 2006, SEM was growing much faster than traditional advertising
Advertising
Advertising is a form of communication used to persuade an audience to take some action with respect to products, ideas, or services. Most commonly, the desired result is to drive consumer behavior with respect to a commercial offering, although political and ideological advertising is also common...

 and even other channels of online marketing. Because of the complex technology, a secondary "search marketing agency" market has evolved. Some marketers have difficulty understanding the intricacies of search engine marketing and choose to rely on third party agencies to manage their search marketing.

History

As the number of sites on the Web increased in the mid-to-late 90s, search engines started appearing to help people find information quickly. Search engines developed business models to finance their services, such as pay per click
Pay per click
Pay per click is an Internet advertising model used to direct traffic to websites, where advertisers pay the publisher when the ad is clicked. With search engines, advertisers typically bid on keyword phrases relevant to their target market...

 programs offered by Open Text in 1996 and then Goto.com in 1998. Goto.com later changed its name to Overture in 2001, and was purchased by Yahoo! in 2003, and now offers paid search opportunities for advertisers through Yahoo! Search Marketing. Google also began to offer advertisements on search results pages in 2000 through the Google AdWords
AdWords
Google AdWords is Google's main advertising product and main source of revenue. Google's total advertising revenues were USD$28 billion in 2010. AdWords offers pay-per-click advertising, cost-per-thousand advertising, and site-targeted advertising for text, banner, and rich-media ads. The AdWords...

 program. By 2007, pay-per-click programs proved to be primary money-makers for search engines. In a market dominated by Google, in 2009 Yahoo! and Microsoft announced the intention to forge an alliance. The Yahoo! & Microsoft Search Alliance eventually received approval from regulators in the US and Europe in February 2010.

Search engine optimization consultants expanded their offerings to help businesses learn about and use the advertising opportunities offered by search engines, and new agencies focusing primarily upon marketing and advertising through search engines emerged. The term "Search Engine Marketing" was proposed by Danny Sullivan
Danny Sullivan (technologist)
Danny Sullivan is the editor-in-chief of Search Engine Land, a blog that covers news and information about search engines, and search marketing.Search Engine Land is owned by Third Door Media, of which Danny Sullivan is partner and chief content officer...

 in 2001 to cover the spectrum of activities involved in performing SEO, managing paid listings at the search engines, submitting sites to directories, and developing online marketing strategies for businesses, organizations, and individuals.

Distinguished from SEO

SEM is the wider discipline that incorporates SEO. SEM includes both paid Search results (Adwords) and organic search results (SEO). SEM uses Adwords, pay per call (particularly beneficial for local providers as it enables potential consumers to get in touch directly to a company with one click), article submissions, advertising and making sure SEO has been done. A keyword analysis is performed for both SEO and SEM, but not necessarily at the same time. SEM and SEO both need to be monitored and updated frequently to reflect changing usage.

In some contexts the term SEM is used exclusively to mean Pay per click advertising, particularly in the commercial advertising and marketing communities which have a vested interest in this narrow definition. Such usage excludes the wider search marketing community that is engaged in other forms of SEM such as Search Engine Optimization
Search engine optimization
Search engine optimization is the process of improving the visibility of a website or a web page in search engines via the "natural" or un-paid search results...

 and Search Retargeting
Search retargeting
Search retargeting is a form of behavioral retargeting employed by online marketers that target an audience based on the previous searches they conduct on other websites...

.

Another part of SEM is Social Media Marketing
Social media marketing
Social media marketing is an addition to personal, small business, corporate, and non-profit organizations’ integrated marketing communications plans...

 (SMM). SMM is a type of marketing that involves exploiting social media to influence consumers that one company’s products and/or services are valuable.
Some of the latest theoretical advances include Search Engine Marketing Management (SEMM). SEMM relates to activities including SEO but focuses on return on investment (ROI) management instead of relevant traffic building (as is the case of mainstream SEO). SEMM also integrates organic SEO, trying to achieve top ranking without using paid means of achieving top in search engines, and PayPerClick SEO. For example some of the attention is placed on the web page layout design and how content and information is displayed to the website visitor.

Ethical questions

Paid search advertising has not been without controversy, and the issue of how search engines present advertising on their search result pages has been the target of a series of studies and reports by Consumer Reports
Consumer Reports
Consumer Reports is an American magazine published monthly by Consumers Union since 1936. It publishes reviews and comparisons of consumer products and services based on reporting and results from its in-house testing laboratory. It also publishes cleaning and general buying guides...

 WebWatch. The Federal Trade Commission
Federal Trade Commission
The Federal Trade Commission is an independent agency of the United States government, established in 1914 by the Federal Trade Commission Act...

 (FTC) also issued a letter in 2002 about the importance of disclosure of paid advertising on search engines, in response to a complaint from Commercial Alert, a consumer advocacy group with ties to Ralph Nader
Ralph Nader
Ralph Nader is an American political activist, as well as an author, lecturer, and attorney. Areas of particular concern to Nader include consumer protection, humanitarianism, environmentalism, and democratic government....

.

Another ethical controversy associated with search marketing has been the issue of trademark infringement
Trademark infringement
Trademark infringement is a violation of the exclusive rights attaching to a trademark without the authorization of the trademark owner or any licensees...

. The debate as to whether third parties should have the right to bid on their competitors' brand names has been underway for years. In 2009 Google changed their policy, which formerly prohibited these tactics, allowing 3rd parties to bid on branded terms as long as their landing page in fact provides information on the trademarked term. Though the policy has been changed this continues to be a source of heated debate.

At the end of February 2011 many started to see that Google has started to penalize companies that are buying links for the purpose of passing off the rank. SEM has however nothing to do with link buying and focuses on organic SEO
Search engine optimization
Search engine optimization is the process of improving the visibility of a website or a web page in search engines via the "natural" or un-paid search results...

 and PPC
PPC
-In communications and computers:* Pay per click, a method of charging for advertising on the Internet* PearPC, a PowerPC platform emulator* Peripheral pin controller, a feature present in the StrongARM CPU family that controls IO ports...

 management.

Major SEM Tools

There are four categories of tools to help you optimize websites.

1. Keyword research and analysis: (a) Make sure the site can be indexed in the search engines; (b) find the most relevant and popular key terms and phrases for the site and its products; and (c) use those key phrases on the site in a way that will generate and convert traffic.

2. Website saturation and popularity: show how much presence a website has on search engines through the number of pages of the site that are indexed on each search engine (saturation) and how many times the site is linked to by other sites (popularity). Generally, the more Web presence you have, the easier it is for people to find your site. It requires your pages containing those keywords people are looking for and ensure that they rank high enough in search engine rankings. Most search engines include some form of link popularity in their ranking algorithms. The followings are major tools measuring various aspects of saturation and link popularity: Link Popularity, Top 10 Google Analysis, and Marketleap's Link Popularity and Search Engine Saturation.

3. Back end tools (including Web analytic tools and HTML validators): Web analytic tools can help you to understand what is happening to your website and measure your website's success. They range from simple traffic counters to tools that work with log files and to more sophisticated tools that are based on page tagging (putting JavaScript
JavaScript
JavaScript is a prototype-based scripting language that is dynamic, weakly typed and has first-class functions. It is a multi-paradigm language, supporting object-oriented, imperative, and functional programming styles....

 or an image on a page to track actions). These tools can deliver conversion-related information. There are three major tools used by EBSCO: (a) log file analyzing tool: WebTrends
WebTrends
Webtrends is a private company headquartered in Portland, Oregon, United States. It provides web analytics and other software solutions related to marketing intelligence...

 by NetiQ; (b) tag-based analytic programs WebSideStory's Hitbox; (c) transaction-based tool: TeaLeaf RealiTea.
Validators check the invisible parts of websites, highlighting potential problems and many usability issues ensure your website meets W3C code standards. Try to use more than one HTML
HTML
HyperText Markup Language is the predominant markup language for web pages. HTML elements are the basic building-blocks of webpages....

 validator or spider simulator because each tests, highlights, and reports on slightly different aspects of your website.

4. Who Is tools: show you who owns and operates various webites, can provide valuable information relating to copyright and trademark issues. Useful tools include Who Is Source, ARIN.
Read a competitor's source code to look for hidden clues, Use Web analytics tools to find out more about your customers, Use the source code and Who Is tools to research legal issues.

Paid Inclusion

Paid inclusion is a search engine marketing product where the search engine
Search engine
A search engine is an information retrieval system designed to help find information stored on a computer system. The search results are usually presented in a list and are commonly called hits. Search engines help to minimize the time required to find information and the amount of information...

 company charges fees related to inclusion of website
Website
A website, also written as Web site, web site, or simply site, is a collection of related web pages containing images, videos or other digital assets. A website is hosted on at least one web server, accessible via a network such as the Internet or a private local area network through an Internet...

s in their search index. Also known as sponsored listings, paid inclusion products are provided by most search engine companies, the most notable being Google
Google
Google Inc. is an American multinational public corporation invested in Internet search, cloud computing, and advertising technologies. Google hosts and develops a number of Internet-based services and products, and generates profit primarily from advertising through its AdWords program...

.

The fee structure is both a filter against superfluous submissions and a revenue generator. Typically, the fee covers an annual subscription for one webpage, which will automatically be catalogued on a regular basis. However, some companies are experimenting with non-subscription based fee structures where purchased listings are displayed permanently. A per-click fee may also apply. Each search engine is different. Some sites allow only paid inclusion, although these have had little success. More frequently, many search engines, like Yahoo!
Yahoo!
Yahoo! Inc. is an American multinational internet corporation headquartered in Sunnyvale, California, United States. The company is perhaps best known for its web portal, search engine , Yahoo! Directory, Yahoo! Mail, Yahoo! News, Yahoo! Groups, Yahoo! Answers, advertising, online mapping ,...

, mix paid inclusion (per-page and per-click fee) with results from web crawling. Others, like Google
Google
Google Inc. is an American multinational public corporation invested in Internet search, cloud computing, and advertising technologies. Google hosts and develops a number of Internet-based services and products, and generates profit primarily from advertising through its AdWords program...

 (and as of 2006, Ask.com
Ask.com
Ask is a Q&A focused search engine founded in 1996 by Garrett Gruener and David Warthen in Berkeley, California. The original software was implemented by Gary Chevsky from his own design. Warthen, Chevsky, Justin Grant, and others built the early AskJeeves.com website around that core engine...

), do not let webmasters pay to be in their search engine listing (advertisements are shown separately and labeled as such).

Some detractors of paid inclusion allege that it causes searches to return results based more on the economic
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...

 standing of the interests of a web site, and less on the relevancy of that site to end-user
End-user
Economics and commerce define an end user as the person who uses a product. The end user or consumer may differ from the person who purchases the product...

s.

Often the line between pay per click advertising
Pay per click
Pay per click is an Internet advertising model used to direct traffic to websites, where advertisers pay the publisher when the ad is clicked. With search engines, advertisers typically bid on keyword phrases relevant to their target market...

 and paid inclusion is debatable. Some have lobbied for any paid listings to be labeled as an advertisement, while defenders insist they are not actually ads since the webmasters do not control the content of the listing, its ranking, or even whether it is shown to any users. Another advantage of paid inclusion is that it allows site owners to specify particular schedules for crawling pages. In the general case, one has no control as to when their page will be crawled or added to a search engine index. Paid inclusion proves to be particularly useful for cases where pages are dynamically generated and frequently modified.

Paid inclusion is a search engine marketing method in itself, but also a tool of search engine optimization
Search engine optimization
Search engine optimization is the process of improving the visibility of a website or a web page in search engines via the "natural" or un-paid search results...

, since experts and firms can test out different approaches to improving ranking, and see the results often within a couple of days, instead of waiting weeks or months. Knowledge gained this way can be used to optimize other web pages, without paying the search engine company.

SEM plan

Through trial and error you will be able to see how SEM drives highly targeted visitors to your online exhibitions. The following are the steps to a successful SEM plan:
  1. Research your target audience.
  2. Set your online goals and key performance indicators.
  3. Build an initial list of important keywords that represent your current and most relevant content and potential content.
  4. Validate your keywords by testing and refining them with your keyword selector tools such as Yahoo Keyword Selector, Google Keyword Selector, Google Trends
    Google Trends
    Google Trends is a public web facility of Google Inc., based on Google Search, that shows how often a particular search-term is entered relative to the total search-volume across various regions of the world, and in various languages...

     and Keyword Discovery.
  5. Check your current ranking.
  6. Optimise the website by improving your web design, architecture and web page content.
  7. Pursue link-building and partnerships.
  8. Colonize the Web by publishing and circulating it in wiki, blogs, and video and picture sites(e.g. Flickr
    Flickr
    Flickr is an image hosting and video hosting website, web services suite, and online community that was created by Ludicorp in 2004 and acquired by Yahoo! in 2005. In addition to being a popular website for users to share and embed personal photographs, the service is widely used by bloggers to...

     and Youtube
    YouTube
    YouTube is a video-sharing website, created by three former PayPal employees in February 2005, on which users can upload, view and share videos....

    ).
  9. Get in the news such as Google News
    Google News
    Google News is a free news aggregator provided by Google Inc, selecting recent items from thousands of publications by an automatic aggregation algorithm....

     with RSS
    RSS
    -Mathematics:* Root-sum-square, the square root of the sum of the squares of the elements of a data set* Residual sum of squares in statistics-Technology:* RSS , "Really Simple Syndication" or "Rich Site Summary", a family of web feed formats...

     feeds.
  10. Install good tracking software, and track and analyze your performance for better results.

Examples of Best Practice

A successful SEM project was undertaken by one of London’s top SEM companies involving AdWords. AdWords is recognised as a web-based advertising utensil since it adopts keywords which can deliver adverts explicitly to web users looking for information in respect to a certain product or service. This project is highly practical for advertisers as the project hinges on cost-per-click (CPC) pricing, thus the payment of the service only applies if their advert has been clicked on. SEM companies have embarked on AdWords projects as a way to publicize their SEM and SEO services. This promotion has helped their business elaborate, offering added value to consumers who endeavor to employ AdWords for promoting their products and services. One of the most successful approaches to the strategy of this project was to focus on making sure that PPC advertising funds were prudently invested. Moreover, SEM companies have described AdWords as a fine practical tool for increasing a consumer’s investment earnings on Internet advertising. The use of free utensils “Conversion tracking” and “Google Analytics” was deemed to be practical for presenting to clients the performance of their canvass from click to conversion. AdWords project has enabled SEM companies to train their clients on the utensil and delivers better performance to the canvass. The assistance of AdWord canvass could contribute to the huge success in the growth of web traffic for a number of its consumer’s website, by as much as 250% in only nine months.

Another way Search Engine Marketing is managed is by contextual advertising. Here marketers place ads on other sites or portals that carry information relevant to their products so that the ads jump into the circle of vision of browsers who are seeking information from those sites. A successful SEM plan is the approach to capture the relationships amongst information searchers, businesses, and search engines. Search engines were not important to some industries in the past but over the past years, the use of search engines for accessing information has become vital to increase business opportunities. The use of SEM strategic tools for businesses such as tourism can attract potential consumers to view their products but it could also pose various challenges. These challenges could be the competition that companies face amongst their industry and other sources of information that could draw the attention of online consumers. To assist the combat of challenges, the main objective for businesses applying SEM is to improve and maintain their ranking as high as possible on SERPs so that they can gain visibility. Therefore search engines are adjusting and developing algorithms and the shifting criteria by which web pages are ranked sequentially to combat against search engine misuse and spamming, and to supply the most relevant information to searchers. This could enhance the relationship amongst information searchers, businesses, and search engines by understanding the strategies of marketing to attract business.

See also

  • Search advertising
    Search advertising
    In Internet Marketing, Search Advertising is a method of placing online advertisements on Web pages that show results from search engine queries. Through the same search-engine advertising services, ads can also be placed on Web pages with other published ....

  • Digital marketing
    Digital marketing
    Digital Marketing is the promoting of brands using all forms of digital advertising channels to reach consumers. Digital marketing extends beyond Internet Marketing to include channels that do not require the use of the Internet...

  • Internet marketing
    Internet marketing
    Internet marketing, also known as digital marketing, web marketing, online marketing, search marketing or e-marketing, is referred to as the marketing of products or services over the Internet...

  • Email marketing
  • Enterprise search marketing
    Enterprise Search Marketing
    Enterprise Search Marketing, also known as Enterprise Search Engine Marketing, is a subset of Search Engine Marketing that relates specifically to the implementation, management and measurement of SEM programs at scale–across a variety of business units, geographies, budgets, local languages,...

  • List of search engines
  • Search engine image protection
    Search engine image protection
    Search Engine Image Protection , also known as search engine reputation management, combines the expertise of Search Engine Marketing and PR, and is designed to protect a company or brand against incorrect negative publicity via the Internet....

  • Search engine reputation management
  • Search engine optimization
    Search engine optimization
    Search engine optimization is the process of improving the visibility of a website or a web page in search engines via the "natural" or un-paid search results...

  • Keyword cloud
  • Web marketing


Search engines with SEM programs
  • Google
    Google
    Google Inc. is an American multinational public corporation invested in Internet search, cloud computing, and advertising technologies. Google hosts and develops a number of Internet-based services and products, and generates profit primarily from advertising through its AdWords program...

     - global
  • Yahoo!
    Yahoo!
    Yahoo! Inc. is an American multinational internet corporation headquartered in Sunnyvale, California, United States. The company is perhaps best known for its web portal, search engine , Yahoo! Directory, Yahoo! Mail, Yahoo! News, Yahoo! Groups, Yahoo! Answers, advertising, online mapping ,...

     - global
  • Bing
    Bing
    Bing is a web search engine from Microsoft.Bing may also refer to:* An onomatopœia of a bell sound* Bing cherry, a variety of cherry* Bing , Chinese flatbread* Bing , a German company that manufactured toys and kitchen utensils...

     - global
  • Ask.com
    Ask.com
    Ask is a Q&A focused search engine founded in 1996 by Garrett Gruener and David Warthen in Berkeley, California. The original software was implemented by Gary Chevsky from his own design. Warthen, Chevsky, Justin Grant, and others built the early AskJeeves.com website around that core engine...

     - global
  • Baidu
    Baidu
    Baidu, Inc. , simply known as Baidu and incorporated on January 18, 2000, is a Chinese web services company headquartered in the Baidu Campus in Haidian District, Beijing, People's Republic of China....

     - China
    China
    Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...

  • Seznam.cz
    Seznam.cz
    Seznam.cz is the most visited web portal and search engine in the Czech Republic. Founded in 1996 by Ivo Lukačovič in Prague as the fist web portal in the Czech Republic. In 2008 Seznam reached a turnover of around 1.7 billion CZK. Seznam started with a search engine and an internet version of...

     - Czech Republic
    Czech Republic
    The Czech Republic is a landlocked country in Central Europe. The country is bordered by Poland to the northeast, Slovakia to the east, Austria to the south, and Germany to the west and northwest....

  • Yandex
    Yandex
    Yandex is a Russian IT company which operates the largest search engine in Russia and develops a number of Internet-based services and products. Yandex is ranked as 5-th world largest search engine...

     - Russia
    Russia
    Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...

  • Rambler
    Rambler (portal)
    Rambler is a Russian search engine and one of the biggest Russian web portals. It is owned by the Rambler Media Group, which has belonged to Prof-Media since 2006....

     - Russia
    Russia
    Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...

  • Timway
    Timway
    Timway is a web portal and directory primarily serving Hong Kong. It is designed for searching web sites in Hong Kong. The web sites in each category are sorted according to their popularity and freshness instead of alphabetical order. Timway supports web search query in English and Chinese, and...

     - Hong Kong
    Hong Kong
    Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...

  • Onkosh
    Onkosh
    Onkosh was an Orascom Telecom product that functioned as a search portal for the Arabic Web. Onkosh was launched in September 2007 and closed down on August 11, 2010...

     - Arabic Search, Middle East
  • Ayna
    Aýna
    Aýna is a village in Albacete, Castile-La Mancha, Spain....

     - Arabic Search engine, Middle East & North Africa
  • Leit.is
    Leit.is
    Leit.is an Icelandic internet search engine developed by the corporation Leit.is ehf. It is available both in an Icelandic and an English version and was launched on June 16, 1999...

     - Iceland
    Iceland
    Iceland , described as the Republic of Iceland, is a Nordic and European island country in the North Atlantic Ocean, on the Mid-Atlantic Ridge. Iceland also refers to the main island of the country, which contains almost all the population and almost all the land area. The country has a population...

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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