Paid Search Part 1 Flashcards
- What is Paid search? - Why is Paid Search important? - How much do you pay for a paid search - Measure metrics - Paid search strategy
Why are Keywords so Expensive?
The Price of Keywords depends on Industry, Location, and Conversion Rates increases the value of Keywords.
What factors determine /impact the Bidding Price of the Keywords for paid search on Google?
- Competition Level
- Keyword Intent
- Industry & Niche
- Quality Score
- Location, Seasonality, & Trends
What is Paid Search?
Paid Search is an online advertising model where advertisers bid on keywords to display their ads on search engines (i.e. Google, Bing, or Yahoo)
How does Paid Search Work?
- Advertisers bid on keywords to trigger their ads
- Ads are displayed at the top or bottom of SERPs, marked as “Sponsored”
- Advertisers pay only when someone clicks on their ad (Pay-Per-Click (PPC))
Why use Pay-per-click (PPC)?
PPC is a measurable and controllable marketing channel compared with more traditional forms of advertising.
Why is Paid Search Important/a Big Deal for Businesses?
- Search users have high intent → More likely to convert
- Search data provides powerful business insights
- Local search helps businesses attract nearby customers
- Organic search builds trust & brand awareness
- SEO is a long-term, cost-effective strategy
- Paid search drives immediate, targeted traffic
What are the Benefits of SEO and Paid Search (PPC)?
- Cost-Effectiveness
- Immediate Results
- Long-Term Visibility
- Targeted Reach
- Credibility & Trust
How do Paid Search (PPC) and SEO (Organic Search) Work Together?
- Paid Search (PPC): provides immediate visibility and traffic and is ideal for promoting new products, seasonal campaigns, or time-sensitive offers
- Organic Search (SEO): builds long-term visibility and credibility; it reduces reliance on paid ads over time
What is Search Engine Marketing (SEM)?
SEM is a broader digital marketing strategy that includes both paid search (PPC) and organic search (SEO) efforts to increase a website’s visibility on search engines.
What is the Goal of SEM?
To maximize a website’s visibility on SERPs through a combination of paid and organic strategies.
What is an Ad Rank?
A score that decides which ads appear and their position on the search results page.
What is a Bid Amount?
The maximum amount an advertiser can pay per click on their ad.
What is a Quality Score?
A rating (1-10) based on ad relevance, expected CTR, and landing page experience.
What are the Takeaways from the 3 Bidding Scenarios?
1) Ad Rank (Bid × Quality Score) determines who gets the top ad slots.
2) Improving the Quality Score can help reduce CPC while maintaining a high ranking.
3) This model ensures advertisers don’t overpay, making PPC auctions efficient and competitive!
Application of PPC and Keyword Bidding System:
- 4 bidders who are each willing to
pay various amounts, 3 slots, minimum charge = $1
Bidder 1: $4
