Why Businesses Should Invest In SEM | 15 Compelling Reasons

5 Min Read. |

I am sure there are many more reasons than I am listing here but make no mistake and ignore at your own peril the 15 compelling reasons why businesses should invest in SEM (Search Engine Marketing). Digital ecosystem today has completely changed the way we market and sell our products and services. It is evolving, but has made rapid strides into targeted marketing like SEM leading to far better ROI (Return on Investment).

Why Businesses Should Invest In SEM | 15 Compelling Reasons

1.) Target Audience:

Few years back, I was watching an interview of Mr. Oberoi by an NDTV reporter where she asked him why we see almost no advertising by you in any medium to increase your sales. He replied it is not true that we don’t advertise. We certainly do so although not too much but, you are not able to see it because we advertise where our customers are. Most of our customers are foreign business visitors, therefore we advertise abroad to directly target them. Using the said analogy, where should we invest today more? Obviously, in digital mediums more than traditional ones because today most of the people with specific intent to purchase or otherwise are searching or surfing for information of goods and services first on digital platforms than physical infrastructure. Therefore investing in SEM to generate new leads makes tremendous business sense.

2.) High Engagement:

As per internetlivestats.com Google alone now processes over 40,000 search queries every second on average, which translates to over 3.5 billion searches per day and 1.2 trillion searches per year worldwide. You just can’t ignore this huge prospect base with the right intent to purchase.

3.) Why Invest in SEM when SEO is Available:

SEM ads appear on top four or bottom 2 of every SERP (search engine results page), whereas SEO (Search Engine Optimization) results appear in the middle. A worldstream.com study reveals clicks on Google’s paid search ads outnumber clicks on free organic listing by 2:1 for commercial keywords searches. So doesn’t it make sense to double your discovery chances? 

4.) Buy SOV and TOM:

As Google uses multiple factors like bid, quality score, ad extensions, ad rank and relevance etc. to determine the placement of your ads on SERP, it makes more sense to invest more energy, time and money in SEM. Invest in expert digital marketers, allot more budgets and manpower to SEM to have maximum frequency or SOV (share of voice) in your category leading to TOM (top of mind recall). Hence influence prospects to buy your goods or services and get more targeted and qualified leads for better conversions. This also gives you database for Inbound Marketing.

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5.) STP (Segmentation, Targeting and Positioning:

SEM ads allows Demographic (Age, Gender, Location and Time etc. specific) and Psychographic (behavioral traits and taste etc.) targeting for all campaigns at very low cost compared to traditional media vehicles. Such specific and accurate STP is the exclusive domain of digital media that gives far better ROI on all your ad investments.

6.) Measurability:

Measurability is another great and exclusive feature of SEM that is concrete in case of Google Analytics & Ad words than in other media vehicles that use statistical extrapolation for such analysis. Remember, currently Brexit and Donald Trump predictions went wrong.

7.) Course Correction:

Course correction is yet another unmatched feature of SEM, whether you want to modify ad copy, keywords, bid amount on a day to day, daily, weekly or monthly basis or otherwise. This facility is not available in other mediums except digital.

8.) A/B Testing:

Test your ad copy and keywords combinations with two or more ads for same ad group in real time and take the more responsive one, is another great feature of SEM, which again is either not available or very expensive and time-consuming in other mediums.

9.) Multiple Ad Formats to suit all budgets:

Multiple ad formats with flexibility of budget size is available for participation of businesses of all shapes and sizes, whether large, big, small or tiny or even Individuals. Again a digital media and SEM exclusive.

10.) Ubiquitous:

24/ 7, anywhere, anytime, one on one, platform agnostic and available on any electronic devices and so on, is definitely an edge for SEM.

11.) Multiple Format Ad Extensions:

It has many ad extensions that can be used in different combinations for different ads for different purposes, queries that can be your USP over competition or ranking on SERP.

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12.) Testimonials:

Review ad extension is the feature that allows 3rd party review links of your product and services in your ad copy, if you have any. These Testimonials considerably enhances your credibility and the prospects purchase consideration for your products and services.

13.) Social Media Integration:

When somebody clicks on your ad and lands at your website and finds it relevant to him, he might click on your social media links to keep in touch and be informed about your future announcements or otherwise just by following you. This also generates database for Inbound Marketing.

14.) Remarketing:

Another great feature of Google is Remarketing capability that allows you to target all people who visited your website but did not convert. It’s a very potent exclusive feature of SEM.

15.) Low Cost Customer Acquisition:

CPC (cost per click) and CPM (cost per ‘000 impression) is another great feature that allows you to pay per click or impression only. This ensures that you pay only for interested eyeballs and not for total possible reach of the medium. Hence, cost of acquisition of customers is very low and targeted as compared to other media vehicles.

I am sure there are more reasons but the above 15 reasons are compelling enough for any business to invest more and more in SEM and reap the intended benefits that are far more than any other mediums available. It is not the future but the invaluable low cost marketing tool of today in your marketing mix.

In mature markets like UK, digital spends are as high as 50% of the total marketing budget. It’s the highest growing category of all advertising platforms available and will be the biggest in the years to come. Finally AdWords and Search Advertising. The bulk of Google’s $75 billion revenue in 2015 came from its proprietary advertising service, Google AdWords. Of that revenue, over 77% – or just over $52 billion – came from Google’s own websites.

I rest my case here and let you decide as I said in the beginning ignore at your own peril or Invest in SEM.

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