What Search Engine Marketing (SEM) is and How It Works

“Googling” products and services is big business. Nearly 54% of all product searches start on Google, and the first five results capture 68% of the clicks.

If your business isn’t ranking high on search engine results pages (SERP), you’re missing out. That’s where search engine marketing (SEM) comes in. SEM helps businesses show up in paid search results, putting their brand in front of the right people at the right time.

Zoe Marketing & Communications has helped businesses maximize digital ads since 2020. In this article, we’ll break down how SEM works, the types of ads available, and whether it’s a good fit for your marketing strategy.

Seach engine marketing in a nutshell

SEM increases website visibility using paid search ads. These ads appear at the top of Google searches and can also display on other websites, apps and even in email.

Unlike SEO (seach engine optimization), which is organic and takes time to build), SEM delivers faster results through pay-per-click (PPC) advertising.

Businesses bid on keywords, competing for ad placement. If your bid and Quality Score (Google’s measure of ad relevance) are high enough, your ad appears in the search results.

How SEM ads appear (5 common types)

Depending on how you set them up, SEM ads show up in different ways.

1. Google search ads

These text ads appear at the top of Google results when users search for specific keywords. They closely resemble organic results but have a small “Ad” label.

2. Google display ads

These visual ads appear on over 35 million websites and apps, reaching targeted audiences as they browse online.

3. Shopping ads

These ads display product images, pricing, reviews and store info, making them ideal for e-commerce businesses.

4. YouTube ads

Since YouTube is owned by Google, text and display ads can appear in search results or alongside videos.

5. Gmail ads

These ads appear as “unread” emails at the top of users’ Promotions inbox.

Why SEM works for businesses

SEM is a versatile tool for businesses of all types. Some of its biggest advantages include:

• High intent: People searching specific keywords are often in a decision-making phase.
• Brand awareness: Even if users don’t click, seeing your ad reinforces your business.
• Local targeting: SEM allows precise geographic targeting, ensuring your ads reach relevant audiences.
• Fast results: Unlike SEO, SEM delivers immediate visibility and traffic.

How much does SEM cost?

Costs vary widely based on industry, keyword competition and geographic location. Some highly competitive industries, like legal or finance, may pay over $50 per click, while others average just a few dollars.

• On average, businesses spend between $1,000-$10,000 per month on SEM.
• At Zoe, SEM rates typically start at $2,500, with an added 35% management fee.
• Pricing plans are often bundled with other marketing strategies for better results.
• Google reports that businesses earn an average of $2 in revenue for every $1 spent on Google Ads.

Managing SEM: DIY vs. hiring an agency

SEM isn’t a “set it and forget it” marketing tool. It requires constant monitoring, adjustments and testing. If you’re considering managing SEM in-house, you’ll need:

• A team member dedicated to PPC campaigns
• Time for keyword research, bid adjustments and A/B testing
• Expertise in Google Ads and analytics tracking

Working with an agency saves time and maximizes results. Agencies refine targeting, optimize bids, and track performance to prevent wasted ad spend.

Next steps for using SEM in your marketing

SEM is a powerful way to increase visibility and drive conversions.

If you’re ready to explore SEM for your business, talk to us at Zoe Marketing & Communications. Our digital marketing experts can build a results-driven SEM strategy that aligns with your goals.

Still exploring your options? Check out these resources:

• Why your digital ads aren’t converting (and how to fix it)
• How SEM differs from sponsored content—and when to use each