Paid Search Definition

In the world of Internet marketing, there are a lot of options for how you can choose to market your website and ultimately your products and services. If you represent a new business that is looking to rapidly establish an online presence and gain early wins or you are an established business that has had successes in other areas of online marketing and is seeking to scale your success, paid search is the answer. Before you jump into the fray feet first, it is important to understand what is paid search? To help answer this question, I have provided a paid search definition and an explanation of what it means to you and your return on investment.

“Paid search is a contextual marketing medium that is defined by a payment as being one of the primary factors for inclusion as well as determining the partiality of placement of targeted content in search engine results, social networks, and ad networks.” – Andrew Bart, Founder & EVP of Digital Strategy at Pop Results

Paid Search Means You Pay To Play

As indicated in my definition of paid search, the fundamental factor is that you are paying to have your content included on an Internet marketing property. While additional models exist, that payment is usually in the form of a Cost Per Click (CPC) or Cost Per Impression (CPM) basis. Most paid search properties allow you to choose which charging model you prefer to subscribe to. CPC means that your ads can display endlessly and you will not be charged until sometime clicks on it. CPM means that you agree to pay a set amount for a certain number of impressions or times that the content displays.

No matter the charging model that you select, it is important to understand that you are entering a competition known as the bidding process. CPC, CPM, and the tertiary performance based charging models utilize a real time competition formula to determine the rate of what a paid search ad should cost at that moment in time. These formulas vary in what they factor but, all will at least factor what all of the advertisers are willing to spend on a maximum level for that specific or similar type of placement criteria. Another common paid search factor is the setting of your time controlled budget. This setting controls the maximum amount that you are comfortable spending within a set period of time which is usually daily, weekly, or monthly.

Paid Search Is Critical For Success

Okay, so now you know the basics but, while the barrier to entry to the game of paid search is very low, remember, you are spending money and it can get wild and out of control quickly. As mentioned above, the competition and the factors related to the bidding process and subsequently the display process are always evolving in real time. For example, if you set a maximum CPC bid of $1.00 for one of your ads and a moment later, someone agrees to a maximum CPC bid of $1.50, their ad is likely going to outshine your ad and you are going to lose market share. From a cost standpoint, does it make sense to then raise your bid or would it be more effective to find another paid search area with less competition where you convert for less? Understanding what you can afford to spend per click or per impression is extremely important. The next step is to ensure that you have a knowledgeable and attentive paid search management service that constantly monitors all of the fluctuations that are certain to occur. Your paid search manager should be prepared to rapidly respond by adjusting your campaign accordingly.

Paid Search Engage The Power

No matter how you choose to define paid search, there is a reason that Google Adwords, Facebook Advertising, and the other paid search properties are wildly successful – They work! The question then becomes, will they work for you and your business or will they just make money off of you and your business. The answer to that question lies in the skill and swift decision making associated with your paid search management. While effective paid search management can be accomplished in a manual format, there are paid search tools including monitoring and bid management tools that are extremely useful. No matter which direction you choose with your paid search campaign, there is no argument that the best campaign is one that is strategically balanced with a tactful organic search engine optimization plan. In and of themselves, paid search campaigns are not the long term answer but they are a huge part of the solution.

Paid Search Definition