A Quick Search Engine Marketing Glossary of Key SEM Terms

Search engine marketing, or SEM, can boost website traffic, target ideal audiences and drive conversions. However, as competition on Google grows, standing out takes effort.

If you’re just getting your bearings, this SEM glossary can help. At Zoe Marketing & Communications, we help businesses like yours build effective SEM campaigns.

Here, you’ll find 21 essential terms explained simply to help you refine or launch your own SEM strategy.

What is search engine marketing?

SEM uses paid ads on search engines like Google to increase visibility and drive action. Advertisers bid on keywords so their ads appear in search results or on other websites.

Most SEM ads fall into two categories:

• Search ads: Text-based ads labeled “Sponsored” in search results.
• Display ads: Image-based ads appearing on websites and apps.

Google Ads is the most popular SEM platform, and pricing is typically pay-per-click (PPC) — meaning you only pay when someone clicks your ad.

Search engine marketing glossary of 21 terms

A/B testing

Comparing two versions of an ad or landing page to see which performs better, helping optimize for conversions.

Ad extensions

Extra info in text ads, like a phone number, location or links, making them more useful and improving click rates.

Ad groups

Clusters of related ads and keywords within a campaign, improving organization and targeting.

Ad rank

A score that determines ad placement, based on bid amount, quality score and ad relevance.

Bid strategy

How bids are set to optimize clicks, conversions or impressions. Common methods include:

• Manual CPC: You set max cost per click.
• Enhanced CPC: Google adjusts bids and cost per click to improve conversions.
• Target CPA: Google aims for a set cost per acquisition.

Click-through rate (CTR)

Percentage of ad viewers who click. The average CTR is 3.75%, but varies by industry.

Conversion rate (CR)

Percentage of clicks that lead to a desired action, like a purchase or form submission. The average CR is 3.76%.

Cost per click (CPC)

The amount paid for each ad click. The average CPC is $1.27 across industries.

Display network

Websites and apps where visual (display) ads appear, expanding reach beyond search results.

Geotargeting

Ad targeting based on location, such as city, ZIP code or a set radius.

Keywords

Terms advertisers bid on so their ads appear when people search those words.

Landing page

The webpage an ad directs users to, designed for conversions with clear info and calls to action.

Negative keywords

Words you exclude to prevent ads from appearing in irrelevant searches, avoiding wasted spend.

Pay per click (PPC)

SEM’s standard pricing model, where advertisers pay only when an ad is clicked.

Quality score

Google’s 1-10 rating of ad and landing page relevance. Higher scores improve rankings and lower ad costs.

Retargeting

Showing ads to users who previously visited your site, reminding them to return and take action.

Return on ad spend (ROAS)

How much revenue ads generate compared to cost. A 4:1 ratio ($4 revenue per $1 spent) is a strong benchmark.

Search network

A group of search engines where text ads appear to reach the best audience.

Target audience

The specific group of users an ad campaign is designed to reach, based on demographics and behaviors.

Text ads

Basic search ads featuring a headline, description and URL, sometimes with ad extensions.

Tracking pixel

A small code snippet that tracks user behavior and conversions, enabling better retargeting.

Next steps for effective SEM

If you want to be found on Google, SEM is a must. This glossary simplifies the key terms so you can confidently approach search engine marketing.

Running effective SEM campaigns takes time. If you need expert support, talk to us. Zoe Marketing & Communications has helped businesses succeed with SEM since 2020.

Meanwhile, deepen your SEM knowledge with:

• A basic SEM/PPC checklist
• SEM ad copy best practices
• How to avoid SEM ad fatigue