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What is search engine advertising?

Search engine advertising (SEA) is a core discipline in online marketing that involves placing paid advertisements on the results pages of search engines such as Google, Bing or Yahoo. These ads often appear at the top or bottom of the search results pages and are usually classified as sponsored Links SEA includes all activities that involve paid placements in the search results and is often used synonymously with Search engine marketing used, although the latter also SEO (search engine optimization).

The big advantage of SEA is that it is “pull advertising”. This means that users are already actively looking for a solution to their problems when they come across the ad. This increases the likelihood that they will click on the ad and make a conversion. SEA is therefore an important measure in online marketing and is part of the standard repertoire of every company that wants to be successful online.

Explanations and definitions of the terms SEA (search engine advertising) can be found in our SEA Lexicon.

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Search Engine Advertising (SEA) Guide

Search engine advertising (SEA) is an online marketing technique in which paid advertisements appear in the results of search engines such as Google and Bing.

This method enables companies to increase their visibility and reach potential customers in a targeted manner. In this article, you will learn how search engine advertising works, what advantages it offers and how you can successfully design your own SEA campaign.

We take care of creating your Google and Facebook advertising.

Key facts at a glance

  • Search engine advertising (SEA) is a core discipline in online marketing in which paid advertisements are placed in the search results of search engines in order to specifically target interested users.

  • SEA is characterized by instant visibility and precise targeting, making it an indispensable tool in the modern marketing mix as it offers a high probability of conversions.

  • SEA campaigns are based on an auction process in which bids are placed for keywords; success depends on factors such as the quality of the ads and landing pages, relevant keywords and a good campaign structure.

Why is search engine advertising important?

The importance of search engine advertising (SEA) lies in its ability to provide instant visibility and targeted engagement with potential customers. Once a campaign is set up, it can generate leads and customers within hours. 

This is particularly valuable because the ads appear at the exact time when users are actively looking for a solution and therefore the likelihood of conversion is high. In contrast to push advertising, which often annoys the target group, SEA reaches users who already have an interest in the advertised product or service.

Advertising in search engines

Another advantage of SEA is the precise calculability of effectiveness. Advertisers can determine exactly how much they pay for each click and what value this click has for their company. In addition, SEA is paid based on actual clicks and not on visual contacts, which enables fair and transparent billing. The flexibility of SEA campaigns also allows advertising campaigns to be adapted or deleted quickly and easily if they do not achieve the desired success.

All these factors make SEA an indispensable tool in the modern marketing mix.

How does search engine advertising work?

Search engine advertising (SEA) works through an auction process in which advertisers place bids for certain keywords. Every time a search is made, an auction takes place, taking into account all advertisers who have booked the corresponding keyword. The ads are placed based on various factors, including:

  • the maximum click price

  • the quality of landing pages and ad copy

  • the relevance of the keyword

  • the history of the Google Ads account

 

Function of search engine advertising

This auction principle has evolved over time, but still works on the principle that the highest bidder gets the best position.

The actual CPC (Cost per Click) is influenced by the Quality Score, which evaluates criteria such as expected click-through rate, ad relevance and landing page experience. A well-structured campaign that follows the website structure can significantly improve performance. Ad copy also plays a crucial role as it plays a key role in achieving click-through rates. Tools such as Google Analytics provide valuable insight into the performance of keywords and search terms and help analyze and optimize the effectiveness of campaigns.

To avoid wastage, the search terms that trigger ads should be checked regularly. High wastage is a potential risk when using broad match keywords, so it makes sense to use a combination of exact matches and other keyword match options. Ultimately, continuous monitoring and adjustment of the campaign structure and ad texts is the key to success in search engine advertising.

Different campaign types in SEA

Display advertising

Advertising on YouTube

Advertising in the mailboxes of Google Mail accounts

Advertising in Google Shopping

Search engine advertising (SEA) offers a variety of campaign types tailored to different goals and formats. The classic text ads that appear in the search results of Google, Bing and other search engines are just one option. Google Ads also includes:

Campaign types in SEA

Each of these campaign types has its specific advantages and is suitable for different marketing goals. In the following subsections we will look at the different campaign types in detail:

Search Ads

display ads

shopping ads

Video Ads

These breakdowns help to better understand the specifics and benefits of each campaign type and make the right choice for each marketing strategy.

Search Ads

Search Ads are the most commonly used form of search advertising. They appear as text ads in the search results of search engines such as Google and Bing. These ads are labeled and often appear at the top of the search results pages, which greatly increases their visibility.

A major advantage of search ads is their high relevance to users' search queries. Since the ads are targeted at specific keywords, they reach an audience that is already searching for the advertised products or services. This maximizes the likelihood that users will click on the ad and convert.

display ads

Display ads are a visually appealing form of SEA and are placed on websites and apps in the Google Display Network. These image ads can have different formats and are ideal for increasing brand awareness and achieving a wide reach.

A key benefit of display ads is their ability to increase user consideration by providing visual incentives. By placing on partner websites, display ads can reach a broad audience and increase awareness of the brand or product.

shopping ads

Shopping Ads are particularly effective for retailers because they display visually appealing product listings directly in search results as shopping ads. These ads include product images, prices, and descriptions pulled from the Merchant Center feed.

Due to their visual nature and detailed product information, Shopping Ads are particularly well suited to motivate users to make a purchase. They appear either with or alongside organic search results and provide a direct way to promote products and increase sales.

shopping ads

Video Ads

Video Ads are a dynamic and engaging form of SEA that appear on YouTube and other websites. These ads must be hosted on YouTube and can appear on various platforms within the Google Display Network.

Video campaigns are particularly effective at increasing brand awareness and creating an emotional connection with users. By combining visual and auditory elements, video ads can convey a strong message and capture the attention of the target audience.

Targeting options in SEA

One of the greatest strengths of search engine advertising (SEA) is the wide range of targeting options. Targeting means defining the target audience and determining who sees the ads. Through precise targeting, advertisers can ensure that their ads reach the right users at the right time, which can significantly increase the conversion rate.

There are different strategies for targeting, including using exact matches and broad match keywords. While exact matches offer high relevance and low wastage, broad matches can achieve greater reach. Finding the right balance between these strategies is crucial to the success of SEA campaigns.

Billing models in SEA

The billing models in search engine advertising (SEA) are diverse and offer flexibility for different marketing goals. The most common models are CPC (Cost per Click), CPA (Cost per Acquisition) and CPM (Cost per Mille).

CPC is the most common model and pays the affiliate for each click on the advertiser's website. CPA, on the other hand, pays for specific actions such as downloading a white paper or signing up for a newsletter. CPM pays for 1.000 views of an ad and is particularly useful for branding campaigns.

Hybrid models combine different types of compensation to provide both traffic security and performance-based compensation for services.

Important advertising platforms for SEA

There are several major advertising platforms for search engine advertising (SEA), each with its own advantages and reach. The most popular are Google Ads, Microsoft Advertising and Facebook Ads. These platforms offer different tools and options to effectively reach the desired target groups.

In the following subsections, we will take a closer look at the specifics of each of these platforms. From the reach and features of Google Ads to the specific advantages of Microsoft Advertising and the dynamic advertising options of Facebook Ads, each platform has its own strengths and can be used optimally depending on your goals and budget.

Google Ads

Google Ads is the largest and most popular search engine advertising platform and offers immense reach. Google Ads allows advertisers to place ads on Google Search and across the entire Google advertising network.

Google Ads offers several campaign types, including:

  • Search campaigns

  • Display campaigns

  • Video campaigns

  • Shopping campaigns

  • Discovery campaigns

This diversity allows advertisers to tailor their SEA strategies precisely to their goals and target groups. Google Ads is therefore the first choice for many companies active in search engine advertising.

Microsoft Advertising

Microsoft Advertising offers advertisers the opportunity to place ads on Bing, Yahoo and the Microsoft advertising network. This platform covers a broad audience that cannot be reached via Google and can be particularly interesting for specific industries and target groups.

By using Microsoft Advertising, companies can expand their reach and reach additional potential customers.

Facebook Ads

Facebook Ads are paid posts that are targeted directly to Facebook users and offer a variety of features beyond regular posts. These ads can include call-to-action buttons, links and product catalogs, making them particularly effective for promoting products or services. Facebook ads appear in various areas of the app, such as the user's feed, stories, Messenger and Marketplace, so they are present throughout the app.

A big advantage of Facebook Ads is the ability to advertise very specifically. By using user data, advertisers can target their ads precisely to their desired target group. Facebook also offers various ad formats such as image ads, carousel ads and collection ads, which make it possible to create creative and appealing campaigns.

Alternative platforms

In addition to the best-known SEA platforms, there are also important providers in other countries that have a significant market position. In China, Baidu Tuigang is particularly relevant, as Baidu covers almost 70% of the market there. This platform offers additional opportunities for SEA in specific markets and can help companies expand their reach in these regions.

In Russia, Yandex plays a major role in search engine advertising and covers a large part of the market. Companies operating in these markets or looking to expand should include these platforms in their SEA strategies to maximize their visibility and reach.

SEA vs SEO

Search Engine Advertising (SEA) and Search Engine Optimization (SEO) are two basic strategies in search engine marketing, each with its own advantages and disadvantages. SEA achieves faster results because the ads are visible immediately after the campaign is set up. However, SEA requires more budget in the long run because traffic is directly dependent on the advertising budget. Without ongoing campaigns, there is no further traffic, which makes SEA a more short-term strategy.

SEO, on the other hand, is a long-term and sustainable strategy. It requires continuous effort and adjustments to keep up with Google updates and generate organic traffic in the long term. SEO provides high relevance to users through relevant and easily accessible results and is often more cost-effective in the long term because traffic from organic results is free. Companies should combine both strategies to achieve both short-term and long-term success.

Tips for optimizing SEA campaigns

To get the most out of your SEA campaigns, sensible structuring and strategic planning are essential. Each campaign should have clearly defined goals and include at least four ad groups to enable targeted communication. The relevance of the ad texts, landing page and booked keywords are decisive factors for the successful performance of search engine advertising.

Call-to-actions (CTA) in the ad copy and the use of scarcity and time pressure can increase the conversion rate. In addition, the ad copy should be simple and authentic to convince users. Additional factors such as page speed or high-quality content on the website can improve the user experience, which also leads to better results.

Keyword research

Keyword research is one of the most important tasks in search engine advertising, as almost every search query leads to an auction for ad space. Selecting the right keywords is crucial to the success of your SEA campaigns. Tools such as the Google Keyword Planner can help identify relevant keywords with appropriate search volume. These tools provide an overview of search volume, competition and click prices, which makes it easier to plan and optimize campaigns.

Transactional keywords like “buy shoes” are often more effective than informational keywords because they appeal to users who already have a purchase intent. By focusing on such keywords, you can increase the likelihood of Increase conversion and make your SEA campaigns more efficient.

ad design

The design of the ad texts is a decisive factor for the success of your SEA campaigns. The texts should contain relevant and exciting wording to arouse the interest of users and encourage them to interact. A creative wording can make the ad stand out from the competition and create an animating effect.

A clear call to action in the ad copy encourages the target group to take the desired action and increases the conversion rate. You can further optimize the performance of your ads through dynamic adjustments to ads and continuous A/B testing.

Landing Pages

Landing pages play a crucial role in the conversion process of SEA campaigns. A landing page is a target page created for a specific marketing purpose that should be simply structured and clearly laid out. Landing pages that do not match the ad text can lead to poor conversion rates, so it is important that the content of the landing page is precisely tailored to the ad.

To avoid distractions, Google Ads landing pages should not contain website navigation. With Google Analytics, you can track which pages were viewed as a result of the ad click in order to identify and optimize potential weak points in the user journey.

Conversion tracking in SEA

Conversion tracking is an indispensable tool in search engine advertising because it allows you to record predefined actions to track campaign success. Without conversion tracking, the evaluation of the effectiveness of online marketing measures would be severely limited.

Conversion tracking enables valid decisions to be made for future campaigns and optimization steps to be derived. It also enables remarketing campaigns by tracking user behavior and sending targeted messages based on this. Different attribution models and the recording of conversions from different sources provide deep insights into the performance of your SEA campaigns.

Common mistakes in SEA and how to avoid them

Despite all efforts, errors can often occur in search engine advertising that affect the effectiveness of campaigns. Ad groups that are too large and inhomogeneous can lead to low click rates and poor quality scores. Irregular evaluation and adjustment of bids often lead to incorrect assessments and bid optimizations.

Another common mistake is booking keywords as 'Broadmatch' across the board, which can generate inefficient traffic. The quality score in Google Ads can be improved by optimizing certain criteria such as expected click-through rate, ad relevance and landing page experience. By regularly checking and adjusting campaigns, these mistakes can be avoided and performance can be increased in the long term.

In summary, search engine advertising (SEA) is a powerful tool in online marketing that enables immediate visibility and precise targeting. The various campaign types such as search ads, display ads, shopping ads and video ads offer the right formats for every marketing strategy. Choosing the right keywords, designing appealing ads and optimizing landing pages are crucial to the success of your SEA campaigns.

By using conversion tracking and avoiding common mistakes, you can further increase the effectiveness of your campaigns. SEA and SEO complement each other and should both be considered in a comprehensive online marketing strategy. With the right approaches and continuous optimization, you can make your SEA campaigns successful and take your business to the next level.

The difference between SEA and SEO is that SEA involves paid ads in search engines, while SEO involves optimizing websites for organic search results. Therefore, SEA targets paid advertising, while SEO focuses on optimizing for unpaid search results.

The auction process in SEA works in such a way that an auction is conducted for each search query in which ads are placed based on bids, relevance and other factors.

There are common models such as CPC, CPA, CPM and hybrid models for SEA. Ultimately, the choice of billing model depends on individual goals and requirements.

There are various targeting options in SEA, including selecting the audience based on keywords, demographic data and user behavior.

To optimize your SEA campaigns, you should pay attention to sensible structuring, targeted keyword research, appealing ad texts, optimized landing pages and regular conversion tracking. These are important steps to increase the success of your campaigns.