Paid Searches

« Back to Glossary Index

What is Paid Searches

Search engines were developed specifically to provide added value to Internet users. People from all walks of life use search engines like Google and Bing to browse the Internet and find out about all kinds of topics. For D2C (direct-to-consumer) brands, this is another channel to increase their brand awareness. Considering that 93% of all website traffic comes from search engines, it makes sense for D2C brands to tap into this resource for potential customers. But how can a retailer use search engines to drive website traffic when there are over 1.7 billion websites (and growing)?

Search engine optimization (SEO) is the most effective way to generate organic Traffic (i.e. websiteTrafficthat comes from search engines). This kind of Traffic is free of charge, i.e. the brands do not pay directly to the search engines for this Traffic. However, the biggest disadvantage of organic traffic is the strong competition. A placement on the search engine results pages (SERPs) for popular terms is extremely difficult and requires an enormous effort for an SEO strategy. Search engines offer a solution to get around this: paid search.

What is paid search?

Paid search is a marketing tactic in which advertisers pay search engines to place ads in the SERPs pay. There are six different factors that determine the placement of these ads on Google:

  • Bids - In an auction structure, companies place bids for keywords or terms that are associated with them or their products and related. These ads work on a pay-per-click (PPC) basis, meaning companies only pay when the ads are clicked.
  • Quality of the display and the Landing Page - Google rates the Relevance and usefulness of landing pages (mobile-friendly websites perform better!) and assigns a quality score for ads.
  • Thresholds for displays - These include the following factors: Ad quality, ad position, user signals and attributes, topic and type of search, and related auctions.
  • Keyword popularity - If two ads have the same ad rank, the ad with the highest bid wins.
  • Search context - The search term, location, time, device type, type of search, competing ads and search results are some things that are taken into consideration.
  • Effects of ad extensions - Companies have the option to include phone numbers and multiple links (e.g. ad extensions).

Advantages of paid search ads

Search engines are fertile ground for businesses looking to expand their customer base. Google alone processes over 3.5 billion search queries per day, which means that search engines always have a guaranteed stream of high-quality Traffic Have ready for picking. Let's take a look at some of the benefits of paid search advertising:

Highly interesting target groups

With a Keyword-research, companies can target customers who are most likely to be interested in their offerings. For example, if a fitness apparel company searches the keyword "best running shoes" and serves paid ads to those who search for that term, it's likely to reach customers who want to buy new running shoes. If you place paid ads on the Search Intention and the search terms, you will reach a target group with high Search Intention.

Great success for your marketing budget

Since search engines operate on the bidding system, the price of ads is determined by the market. For example, if a company places its highest bid for a Keyword is set at $5 and the highest competing bid is only $3, it pays only $3.01. Most of the time, companies pay less than the highest bid, and if competitor interest in a search term increases, they can change their bid at any time.

The prices for these ads are not only protected by the market, but also offer a high return on investment (ROI). On average, brands receive a return of $8 for every dollar they spend on Google advertising.

Immediate results

Unlike other aspects of an SEO strategy, businesses can see measurable, high-quality results relatively quickly. Since paid search ads are highly targeted (as mentioned above), they exclude customers who would take much more convincing to make a purchase. This allows companies to target customers who have a shorter Customer Journey have

In addition, the time and effort required to launch and set up a campaign is very low. Companies don't have to worry about hiring a graphic designer or copywriter, as search engines don't require creative content (e.g. images or text). However, paid search ad campaigns need to be maintained long term, so you shouldn't just set them up and forget about them. Check regularly and make the necessary optimizations if needed.

« Back to Glossary Index


What are Paid Searches? arrow icon in accordion
Paid Searches are advertising measures that are carried out via search engines such as Google or Bing. With Paid Searches, companies make a claim for remuneration against such search engines in order to be placed at the top of the search results and thus gain more visibility.
How does the payment for Paid Searches work? arrow icon in accordion
Payment for Paid Searches is usually via a "pay-per-click" model. This means that companies have to pay every time someone clicks on their ad. The amount a company has to pay for Paid Searches depends on various factors, such as the search term, the ad offered and the competitive environment.
What is the advantage of Paid Searches? arrow icon in accordion
Paid Searches offer companies the opportunity to increase their presence in search results and thus gain more traffic and visibility. In addition, Paid Searches enable a company to strengthen its brand in a rapidly changing digital world and reach key audiences.
How to choose a suitable search term for Paid Searches? arrow icon in accordion
When selecting the right keyword for Paid Searches, companies should first identify a set of relevant keywords and determine which keywords are most frequently searched. Then, they can select some of these keywords to optimize their Paid Searches. Additionally, companies can also use tools such as Google Keyword Planner to generate more keyword ideas.
What is the conversion rate in Paid Searches? arrow icon in accordion
The conversion rate in Paid Searches is an important measurement tool for measuring the effectiveness of ad campaigns. It is the percentage of users who clicked on the ad for a specific product or service and subsequently performed a desired action (e.g. a purchase or signing up for a newsletter).
How do you measure the performance of paid searches? arrow icon in accordion
The performance of Paid Searches can be measured by various methods. On the one hand, companies can measure the effectiveness of their campaigns using metrics such as clicks, impressions, CTR (click-through rate), and conversion rate. On the other hand, companies can also use A/B tests and other testing methods to measure the performance of Paid Searches.
What are the costs associated with Paid Searches? arrow icon in accordion
The costs associated with Paid Searches depend on various factors, such as the search term, the competitive environment, and the type of ad. As a rule, however, companies will pay per click, which enables clearer cost control.
How can Paid Searches be worked out? arrow icon in accordion
Paid Searches can be successfully elaborated by creating high quality ads. Here it plays a role that the ads are tailored to the target group and provide relevant information. In addition, companies should also check whether the ad is equipped with the right keywords to achieve a higher click-through rate.
How are Paid Searches rated compared to SEO? arrow icon in accordion
Paid Searches offer companies a distinct opportunity to gain visibility faster than is possible with SEO. With Paid Searches, companies can place their ads at the top of search results immediately, whereas with SEO it can take several months for a page to reach a good position.
What advantages does Paid Search offer compared to other advertising strategies? arrow icon in accordion
Paid Searches offer businesses the advantage of being able to quickly rank at the top of search results, gaining more traffic and visibility. Furthermore, Paid Searches also allow companies to send targeted ads to the audience, ensuring that the right audience is reached. In addition, Paid Searches also offer businesses greater cost control compared to other advertising strategies, as they only have to pay for the clicks that occur on their ads.

With top positions to the new sales channel.

Let Google work for you, because visitors become customers.

About the author

Social Media & Links:

Your free gift!
Our SEO strategy

You want more visitors and better Google rankings?

Watch our free SEO strategy webinar now and understand where your SEO levers are and how to tackle them head on.