Search Engine Marketing (SEM) is different from Search Engine Optimization in that SEM allows you to pay for targeted traffiic for your selected keywords as well as control what is displayed when your listing (an advertisement) appears. On the surface this can seem like an easy way to gain rankings. The problem is that not everyone pays the same price, and it is not as simple as out-bidding someone else. In fact, a seasoned SEM expert can gain higher ranking while paying LESS than you!

The most prominent SEM providers are Google Adwords, Microsoft AdCenter, and Yahoo! Search Marketing.

SEM can be very successful when managed by an experienced professional who understands how your website is optimized and can structure SEM campaigns to leverage your optimization. They also know that SEM can be futile and costly if SEO has not been performed. It is important to conduct testing of an SEM campaign before launching it, which can save a great deal of money in the long run.

Essentially, SEM works when you create an advertisement which will appear when your selected keyword(s) are typed in by a user. If the user clicks your ad, they are directed to your website. You are charged for that “click.” You can cap the amount of money you want to spend every day on clicks. They key to success is making your listing appear in the best spot on the screen for the cheapest click cost or Cost-Per-Click (CPC). Lowering your CPC will increase your return on investment, which is the difference between success and failure.

Multiple factors play into your CPC, such as click-through-rate (CTR, number of clicks you get per 100 impressions of your ad), bounce rate (number of visitors who immediately leave your site), keyword mix with your ad and website landing page, and website conversion rate. The more successful you are with these elements the lower your CPC.

Entire books have been written about SEM, but this is meant to introduce you to the concept. As recommended earlier, an SEM professional is money well-spent.