Marketing Monday: Optimize Your Online Advertising

In the last Marketing Monday blog, we defined organic listings and paid listings. In today’s post, we’ll dig a little deeper, and explore ways in which you can leverage this distinction when deciding how to promote your business. 

We’ll start with a couple more relevant definitions. Search Engine Optimization (SEO) is the process whereby a website or web page is made more visible via the organic (free) listing. Search Engine Marketing (SEM) is the process of promoting and marketing a website through paid listings (advertisements) on search engines. SEM can include elements of SEO, but not vice versa.

In the realm of search engine marketing (SEM/paid listings), a wealth of options exist and if you’re not careful, you can throw your hard-earned money away on a “little of this” and a “little of that” and not get a great return on your investment (ROI).

Ads on most search engines operate on a PPC (pay-per-click) model, meaning that you pay only when a user clicks your ad, and not for the ad impression (the instance in which the ad appears on the page in response to a query). Another common and useful pricing model in online advertising is cost-per-thousand impressions (CPM), in which you pay per impression, not for any clicks on your ad. How and when to use CPM will be covered in more detail in a future blog.

Let’s explore the top search engine options currently available to you. The three most notable paid advertising search engines are Google, Yahoo, and Microsoft/Bing. Google continues to dominate the scene with nearly 65% of the market share, while Yahoo and Microsoft/Bing are battling it out for second place, at 15.1% and 15% of the market share, respectively.

All three search engines utilize the “bidding” option, whereby you determine a monthly spend (this is your budget) and then figure out how much you are willing to pay for each click. You set your maximum bid (i.e. $0.45/click) and depending on a variety of factors such as the keyword competition, geography, and relevant content, your ad will appear.

Now let’s throw another tool into the mix: social media advertising. There’s been a lot of talk about social media and quite frankly, who isn’t familiar with Facebook, LinkedIn, and YouTube? But Facebook is more than just a way to reconnect with high school friends or to share pictures. Facebook, like LinkedIn and YouTube, now offers paid advertising. The difference between search engine marketing and social media marketing is that the former is primarily based on keyword queries and the latter on relevant content.

Getting the most out of SEM requires selecting the option that’s right for you. If you’re trying to appeal to a bigger audience and you want people who are searching for your product (whether it’s coffee or cameras), Google is probably your best choice. If you can afford it, also advertise on Yahoo and Microsoft/Bing. Facebook, LinkedIn and YouTube are better suited for those trying to brand their product and not necessarily complete an action (ie. sale or sign-up). Social media marketing does not allow you to do a search for a product; rather, display ads will appear based on relevant content.

Rather than take a “one size fits all” approach to advertising, consider the following points in choosing the “right fit” for your small business:

  • Compare the ad pricing of all three search engine options – can you afford to advertise on all three or should you choose the one that will give you the most bang for your buck?
  • Consider your market – are you trying to achieve a measureable result (sale, sign up, newsletter, etc.) or are you trying to create a brand?
  • Constantly re-evaluate your return on investment (ROI) goals
  • Is social media relevant to your business or are you succumbing to the hype?

Don’t be pressured into parting with your hard earned money. Knowledge is your best tool when utilizing search engines or social media to market your business. And, of course, don’t forget another powerful advertising tool at your disposal, and a free one at that: posting your business on GoHuman!

 

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  • Anonymous

    Wendy, thanks for the great blog outlining the choices and options small businesses need to understand to make the Internet and SEO/SEM work for us.