Generating Customer Demand and Nurturing Leads & Prospects
Generating Customer Demand and Nurturing Leads & Prospects
12 Paid Advertising and Search Engine Marketing
Learning Objectives
By the end of this chapter, you should be able to:
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Explain key paid advertising concepts, structures, & terminology
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Describe the basics of keyword bidding
- List the different types of Google Ads
Basic Terminology and Calculations
There are many paid advertising options in digital marketing. However, before we delve into specific techniques and processes, let’s review some basic terminology and calculations:
- Search Engine Marketing (SEM)
Often used interchangeably with paid advertising, search engine marketing is actually the practice of maximizing marketing results from search engines. While this does include paid advertising, it also covers organic SEO, as well. So, search engine marketing is the umbrella concept that includes all marketing efforts – paid or unpaid – that maximize an organization’s search engine results. - Impressions
Impressions represent how many people have been exposed to (“seen”) an ad. - CPM
CPM is the cost to an advertiser for every 1,000 (Latin: “mille”) impressions. In other words, this is the price advertisers pay for every 1,000 views of a specific ad.
For example, if your budget was $500 and that delivered 25,000 impressions, your CPM would be $500 ÷ (25,000 / 1,000) = $20. Remember that CPM are measured in 1,000 impressions. Meaning if the total forecasted impressions are 25,000, you’ll need to divide this by 1,000 to calculate your CPM. Because this pricing model charges for every view, regardless of whether the person clicks on it or not, the rates (per 1,000) are often the lowest. The use of CPM campaigns is relatively rare since it is not connected to specific actions or results. However, marketers may still use it for branding or awareness campaigns because they can potentially get their message in front of large audiences at lower rates.According to TopDraw, the following CPM rates represent averages across a variety of online advertising platforms:Average CPM Rates in 2021 Platform Average CPM* Google Search Ads $38.40 Google Display (Banner) Ads $3.12 Facebook Ads $8.60 Instagram Ads $8.96 Twitter Ads $6.46 LinkedIn Ads $6.59 Pinterest Ads $30 * Please note the above amounts are averages. CPM rates will vary significantly depending on the focus of your target audience. So, if you are targeting the world, for example, you will be quoted a much lower CPM rate because the audience is quite general and diverse. However, if you want to target potential customers in a specific country, geographic region, industry, or with specific interests, CPM rates can increase dramatically.
- Cost Per Click (CPC)
Cost per Click is the cost to an advertiser for each click on an ad. In other words, an advertiser only gets charged when someone clicks on their ad – not a view like CPM. Since a click indicates initial interest, marketers will generally pay more for these types of ad campaigns. CPC ca