SEM Campaigns: A Complete Search Engine Marketing Guide

Search engine marketing is a digital advertising strategy that helps businesses increase visibility and web traffic with paid ads on search engines like Google and Bing. Learn how to build an SEM campaign in this guide.

Looking to connect with your target audience at the exact moment they search for your products or services?

A search engine marketing (SEM) campaign can help make it happen with paid ads at the top of the search engine results pages (SERPs).

In this guide, we’ll explain what an SEM campaign is, how to set one up, and best practices for improving performance over time.

What is an SEM campaign?

An SEM campaign is a paid search marketing strategy that uses ads on SERPs to drive targeted traffic to a website.

SEM campaigns can drive high-quality traffic to a website, generate leads, and increase sales or conversions.

Running an SEM campaign involves:

• Keyword research
• Writing engaging ad copy
• Campaign setup
• Landing page optimization
• Tracking and analytics

Some marketers use SEM to refer exclusively to pay-per-click (PPC) advertising, while others use it as a broader term that includes both paid search and search engine optimization (SEO).

At HawkSEM, we use SEM to describe a strategy that combines SEO and paid advertising; however, this guide focuses on building a paid search campaign.

How to set up an SEM campaign

1. Pick a PPC network

There are several search engine advertising network options, including:

• Google Ads: Displayed across the Google network, including Google Search, the Google Display Network, and YouTube
• Microsoft Ads (Bing Ads): Displayed on Bing‘s search engine, display ads, ads on DuckDuckGo, and LinkedIn
• Yahoo Ads: Displayed on Yahoo, AOL, and TechCrunch
• Chatbot ads: A more nascent ad type that’s beginning to roll out on AI platforms like ChatGPT (more on that here)

While some PPC platforms like Microsoft ads can give you access to a smaller, segmented group with higher income and less competition, Google Ads is the largest advertising platform in the world.

It also has better targeting and testing options than some of the other paid search platforms.

Since this is a beginner’s guide, we’ll keep things broad enough to apply to any ad network. Though we admittedly have a strong preference for Google Ads, the same core concepts will still apply to other ad platforms.

2. Conduct keyword research

“Keywords” are the queries users enter into a search engine when conducting a search.

For paid search advertising, the primary goal is to appear at the top of the search results when your target audience enters a relevant search term with high-intent (i.e., a clear intention to make a purchase soon).

Keyword research is the process of discovering which search terms your target audience uses to discover your brand.

Advertisers use keywords to organize campaigns, build ad groups, and target relevant search queries.

Note: While AI-powered campaign types automate much of the targeting and bidding process, keyword research remains essential for understanding search intent, organizing campaigns, and creating relevant ad copy.

How to perform keyword research

There are various tools and methods you can use to conduct keyword research. Here are a few of our top resources:

Google search

First, put yourself in your target customer’s shoes: What terms would they use to find you?

Type in the search terms you brainstormed and experiment with Google’s predictive search (the way Google auto-fills your search terms based on popularity or similarity).

And check out the “People also ask” section of the SERP to narrow in on keyword variations and related terms:

From there, check up on competitor brands. See which ads they’re running and which products they focus on the most so you can learn from their decisions.

Pro tip: AnswerThePublic is a helpful tool for finding commonly searched-for questions your target market is asking online so you can optimize keywords with search intent in mind.

Keyword research tools

When you’ve exhausted your Google search, move on to keyword research tools like Ahrefs, Google Trends, or Semrush.

These SaaS tools are similar to search engines in that you enter specific keywords, and the tool returns related keywords based on search engine performance data, such as monthly search volume and ranking difficulty.

Further reading: Need more help with researching keywords? Check out our keyword research guide to help get you started.

3. Optimize your landing pages

Landing pages are the webpages a user lands on when they click on your ad.

Google (and other ad networks) assess ad quality based on how fluid the transition is from your ads to your landing pages.

Any disconnect or lack of continuity will cause problems for users, making your ads less practical and ineffective.

These disconnects can be as significant as a single-product ad taking a user to a generic ecommerce storefront. Or it can be as minor as your ad mentioning a 10% discount and your landing page mentioning a 15% discount.

It’s best to focus on making your landing pages clearly deliver your solution to users. That might mean convincing them to buy a product, sign up for a subscription, or otherwise convert them into leads or paying customers.

Further reading: A lot goes into successful landing pages, so check out our Ultimate Guide to Landing Pages here for tips on optimizing yours.

4. Plan your campaign structure

When it’s time to create your PPC campaigns, it helps to understand how these accounts are structured.

To set up a traditional SEM campaign, you’ll often follow roughly the same three-tiered housing system inside your account, no matter the platform:

• Campaigns: Your advertising “categories” will be divided into specific campaigns, like branded searches, summer sales, or returning customers.
• Ad groups: Within each campaign, ad groups act as subcategories, or segments, within that primary category. Ad groups are typically organized around specific keywords, offers, or products.
• Ads: Within each ad group, you’ll have the ads themselves. You’ll need multiple versions to test against one another within the same ad group, so they share the same targeting and budget settings.

If your ads are extensive, your budget is robust, and your product library is sufficiently disparate, you might have one more level at the top.

You may have a Master Account and sub-accounts for different departments or types of products. For example, Nike might have an Athletic Wear segment, a “Shoes” segment, and so on.

It depends on how you want to organize it and connect it within your company.

AI-powered campaign types

While traditional SEM campaigns are organized into campaigns, ad groups, and ads, many advertising platforms now offer AI-powered campaign types that automate much of this process.

For example, Google’s Performance Max uses machine learning to optimize bidding, targeting, placements, and creative based on your goals, rather than keywords.

You can learn more about setting up this campaign type in our Performance Max guide.

5. Craft compelling ad copy

A large portion of your efforts in day-to-day SEM management will focus on writing and testing ad copy.

Compelling ad copy is what makes advertisers stand out on the search engine results pages and entices people to click.

Effective ad copy should be accurate, relevant, and focused on a clear value proposition.

The quality and relevance of your copy significantly impact your ads’ placement in the ad auction, performance, and click-through rate (CTR), which is why testing ad variations is essential.

Your copy doesn’t need to be perfect the first time, but it needs to be in the right ballpark.

That means knowing who you’re reaching and what your potential customers are interested in so you know what points to mention for your most promising ads.

Further reading: How to Create SEM Ad Copy that Converts: Key Elements + Pro Tips

6. Set up proper conversion tracking

Without proper conversion tracking, your advertising platform cannot learn what’s working and what’s not.

In other words, your PPC advertising is only as good as the data you use to make decisions. Here’s a look at several different kinds of tracking you can set up, along with custom tracking for specific ad networks:

UTM tracking

UTM parameters are tags added to the end of a URL that help you track where your traffic comes from. This is referred to as UTM tracking.

They make it easy to measure the performance of specific campaigns, ads, emails, and other marketing efforts in analytics tools.

For example, if multiple ads point to the same landing page, UTM parameters can show which ad generated the click, where the visitor came from, and which campaigns drove the most conversions.

Automatic conversion tracking

Google Analytics performs extensive automatic tracking based on standardized formats and information, so it can track conversions from users who arrive at ads without any extra setup on your part.

Manual conversion tracking

By setting up advanced conversion tracking in Google Analytics, you can track events that aren’t standardized and assign specific values to them. You can also track phone calls or live chat metrics using the right tools.

The more information you have on hand, the better you can inform your decisions around optimizing your ads, refining your keyword lists, adjusting your landing pages, and more.

Without conversion tracking, you’re running blind and have no idea which of your ads are responsible for your conversions.

7. Run split tests with ad variations

Split testing, also known as A/B testing, is a way to compare two or more variations on a single ad to see which one performs better. Split testing goes beyond just testing different ad copy.

You can use this testing to change and optimize everything from your call to action (CTA), ad assets (formerly extensions), bidding strategy, display URL, and more.

Small changes can add up in a big way. The trick is to be intentional with those changes.

Test only a single variable at a time, and make sure your budget, website traffic, and search volume are all sufficient enough to give you statistically significant samples.

You also want to give your ad variations enough time to collect data. Running those ads for a few days won’t give you the data you need to make an informed decision.

Further reading: For more information, here’s a guide on setting up effective A/B testing and a list of real-life examples of A/B tests.

8. Review, audit, and iterate on your PPC campaigns

Between your analytics and your tests, you should have plenty of information to make optimization decisions.

You can see the Quality Score of your landing pages, your ad rank, the impressions, clicks, and conversion rates of your search ads — as well as your cost per click (CPC), cost per action (CPA), and more.

Armed with that information, you can audit your SEM campaigns from top to bottom.

You’re always going to be testing, iterating, and optimizing your ads. You can never rest on your laurels and view your ads as “good enough.”

Is a SEM campaign right for your business?

Before launching a SEM campaign, there are a few elements you need to have in place.

A realistic advertising budget: PPC requires an upfront investment as your campaign settles in. Beyond the initial learning period, businesses should be prepared to dedicate enough monthly spending to see results.

Clear business goals and conversion tracking: Clear business goals dictate the strategy and success of an SEM campaign. What do you need to be profitable? How many leads? What are your close rates?

Document your business goals and keep them handy for your SEM campaign buildout.

High-quality landing pages: Your website needs to be fast, informative, and easy to navigate across devices. This is where an SEO strategy and PPC overlap so powerfully.

Strong landing pages improve Quality Score, user experience, and conversion rates, making your ads more effective.

In other words, a well-executed ad campaign is useless without a website that’s also optimized for the organic search results, loads quickly, is mobile-friendly, and offers an effective user experience.

The operational capacity to handle new leads: PPC can be so effective in bringing in a ton of leads and customers that unprepared businesses may not be able to keep up.

To combat this, make sure your business model is scalable. Ask yourself these questions:

• Is your team prepared for an increase in sales?
• Do you have enough inventory to accommodate more sales?
• Can your team handle increased customer service inquiries?

SEM campaign FAQs

Here are some of the most frequently asked questions we get from businesses about search engine marketing:

SEM vs SEO: What’s the difference?

SEM uses paid search advertising, while SEO relies on organic website optimization.

Both SEM and SEO help websites gain visibility online. When used together, they offer the best results and return on investment (ROI).

Read our guide on SEM vs SEO marketing to learn more about the differences and when to use each.

What are the benefits of SEM?

The main benefit of SEM is that it boosts your visibility on the search engine results page, driving more traffic to your site.

Due to the targeted nature of SEM strategies, the traffic your ads drive is likely to be made up of high-quality leads.

When you drive more traffic back to your site, you increase your chances of making additional sales and increasing revenue. SEM also drives brand awareness by putting your business in front of more people.

How much does an SEM campaign cost?

SEM costs vary based on your goals, competition, industry, and whether you’re managing campaigns in-house or working with an agency.

The average PPC management price is between $1,500 and $10,000 per month. The average SEO cost is $3,000 to $10,000 per month. The pricing for these services will vary depending on who you hire and their experience level, as well as goals, competition, complexity, and timeline.

The takeaway

Now that you know what it takes to set up an SEM campaign, it’s time to try it for yourself.

Truthfully, it takes a whole lot of time and resources to see big returns on PPC campaigns you run on your own if you’re not experienced. That’s why most agree that paid search should be left to the experts.

Whether you work with a digital marketing agency for SEM services, hire support in-house, or contract with a PPC consultant, knowing the basics of SEM makes it easier for you to find a qualified team player.

And if you’re looking for the right SEM agency, book a call with us today.

This article has been updated and was originally published in November 2022.