Key to success.....Keywords!!!

Posted by SMstudy® on November 18, 2016 | Digital Marketing (DM)

Keywords: Digital marketing, Search engine marketing, Paid listings

Search Engine Advertising (SEA), or paid search, is the way in which advertisers obtain a prominent listing for their company through the paid auction model, whereby the company bids for specific terms or phrases, called keywords. SEA allows companies to create targeted advertisements, which are shown to users when they search for the keywords based on a predetermined bidding algorithm. Generally, the main objective of an SEA campaign is to increase reach and awareness and keywords are critical for achieving these objectives.

Keywords are terms and phrases associated with a company’s product. For businesses seeking to maximize their reach and awareness using search engine advertising, the focus must be on bidding on keywords that are highly relevant to the search queries that are common in their business. For example, the searcher may be looking for a garden hose, but the business must think broadly and choose keywords that can be associated with garden hoses, such as garden supplies or water hoses. Businesses can make use of their past data and competitor data to determine the popularity and relevance of various keywords. The more relevant the keywords are to a business and website, the more cost effective the online search advertising campaign will be.

The price of keywords can vary greatly, from pennies to several dollars depending on popularity, demand, and the value to the advertiser. For example, the term “gloves” or “warm gloves” may be expensive, while a very specific product term or more obscure term, such as “polka dot linen gloves,” may be much cheaper. The amount a given advertiser will pay will vary based on a number of factors including the ad’s “quality score” and the rank of the ad as well as the popularity of the keyword among the competitors. The quality score is the search engine’s way of determining the relevance of an ad to the searcher by evaluating the keyword’s relevance to the business and its landing page, as well as other factors. Typically, once an advertiser has identified the keywords that they want to ‘bid’ on, they must determine the maximum price per click that they will pay and then group similar words with relevant ads to display for those keywords. The rank of an ad is determined based on the cost-per-click (CPC) and the quality score.

Keywords can also be localized to make the search more relevant and reduce the bid amount. For example, a musical group performing in Washington D.C. could use a keyword “music show in Washington D.C.” to ensure that their ad is seen by users who are interested in attending a music show in the same city. Localized keyword advertising provides a more focused reach for businesses, ensuring that the business is advertising to a targeted audience and not advertising in markets where the business will not see a significant return on its investment.

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