What is Paid Search Advertising in 2024? A Guide From An Expert

Insights from Ted Huffman, President of Addion, startup advisor, CMO and former Director of Technology at GoTo.com

25 years ago I lead the team that built the very first paid search engine. Nobody has a longer history in paid search than myself and the other experts at Addion. I’ve been running agencies and managing millions in paid search spend since then. As the definitive expert in paid search, I want to walk you through this journey so you can maximize the effectiveness.  Frankly, Google has enough money – it’s time you got the best ROI from your advertising.

In today’s digital landscape, reaching potential customers online is more crucial than ever. But with so much noise, how do you ensure your business stands out? Enter paid search advertising—a powerful tool that can put your business right in front of people actively searching for what you offer. If you’ve never ventured into the world of paid search, don’t worry. This guide will break it down for you, explaining what it is, how it works, and how you can start using it to grow your business in 2024.

What is Paid Search Advertising?

Paid search advertising, often referred to as search engine marketing (SEM) or pay-per-click (PPC) advertising, is a way to get your business to appear in search engine results when someone searches for terms related to your products or services. Unlike organic search results, which are ranked based on a search engine’s algorithm, paid search ads appear at the top of the search results page, marked as “sponsored” or “ad.”

Here’s how it works: You choose keywords that are relevant to your business, create ads around those keywords, and then pay the search engine to display your ads when someone searches for those terms. You only pay when someone clicks on your ad, hence the name “pay-per-click.”

Why Should You Care?

You might be thinking, “Why should I pay for search ads when I can try to rank organically for free?” While organic search is valuable, it can take time to see results, especially in competitive markets. Paid search offers a faster, more targeted approach. Here are a few reasons why it’s worth considering:

1. Instant Visibility: Your ad can appear on the first page of search results as soon as your campaign goes live, putting your business in front of potential customers right away.
2. Targeted Reach: With paid search, you can target specific audiences based on factors like location, device, and even the time of day, ensuring your ads reach the right people at the right time.
3. Measurable Results: Paid search platforms provide detailed analytics, allowing you to see exactly how your ads are performing. You can track clicks, conversions, and return on investment (ROI) to ensure your money is well spent.

How Does It Work?

Let’s break down the basics of a paid search campaign:

• Keywords: These are the words or phrases that people type into search engines when looking for something. You’ll want to choose keywords that closely match what your business offers.
• Ad Copy: This is the text that appears in your ad. It should be clear, compelling, and directly related to the keywords you’re targeting. A good ad copy grabs attention and encourages users to click.
• Bidding: Paid search operates on an auction system. You set a maximum amount you’re willing to pay for each click (your bid). When someone searches for your chosen keywords, the search engine compares all the bids and determines which ads to display and in what order.
• Pay-Per-Click: You only pay when someone clicks on your ad. The amount you pay per click can vary based on factors like competition for the keyword and your ad’s relevance.

Tips for Success in Paid Search

Starting with paid search might seem daunting, but with a few key strategies, you can set yourself up for success:

1. Research and Select the Right Keywords: Use tools like Google’s Keyword Planner to find keywords that are relevant to your business and have a good balance between search volume and competition. Look for highly relevant keywords that capture a customer right when they are looking to make a purchase or contact a company. Don’t look at keywords with LOTS of traffic – those are both expensive and poor converters. If a keyword gets 10 searches a month, but you sell 33% of those, then that’s incredibly profitable. Counter that with keywords that get thousands of clicks a month, but they are expensive and don’t convert as well. Now you are likely unprofitable on that keyword.
2. Create Compelling Ad Copy: Make sure your ad clearly communicates what you offer and includes a strong call to action (e.g., “Shop Now,” “Learn More”).
3. Monitor and Optimize Regularly: Paid search isn’t a “set it and forget it” strategy. Keep an eye on your campaigns, adjust your bids, test different ad copies, and refine your keywords to get the best results.

Common Myths About Paid Search

Let’s address a couple of common misconceptions that might be holding you back from trying paid search:

• “Paid search is too expensive.” It’s true that costs can add up, but you have full control over your budget. Start small, test, and scale up as you see results.
• “It’s only for big businesses.” Paid search is for everyone. In fact, small to medium-sized businesses can benefit greatly from the targeted reach and instant visibility that paid search offers. This fact alone is the reason that paid search is 95% of Google’s revenue – it works for ALL businesses regardless of size. It’s just a case of optimizing and starting conservatively.

The Best Tool to Profitably Advertise Online

Paid search advertising is a powerful tool that can help you reach your target audience quickly and effectively. Whether you’re looking to drive more traffic to your website, increase sales, or simply raise brand awareness, paid search offers a flexible and measurable way to achieve your goals. If you haven’t explored it yet, now is the perfect time to start. Take a look at the platforms available, experiment with a small budget, and see how paid search can work for your business.