While COVID-19 kept many people inside and unable to travel, it also drove many online. People are using the internet more than ever before. As of January 2021, there were 4.66 billion active internet users worldwide.
At the same time, financial services are moving online. Brick-and-mortar banks are being replaced by online-only banks. Healthcare is starting to adopt telemedicine as a viable alternative to in-person doctor visits. Restaurants are relying less on indoor dining and more on order pickups and deliveries. Even grocery stores like Walmart are starting to offer grocery pickups and deliveries as a popular alternative to indoor shopping.
Almost every industry is seeing a shift toward online business.
And if you’re still trying to take your business online, there’s no easier way to start than through paid search advertising.
Source: Statista
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What is Paid Search Advertising?
Paid search advertising refers to paying search engine platforms like Google to display your ads in their search results under a sponsored section.
Most often, search platforms offer a cost-per-click (CPC) pricing model in which you pay each time your ad is clicked on. If it’s not clicked on, they don’t get charged.
Sometimes paid search campaigns run on a cost per mille (CPM) model, which means you pay for every 1,000 ad impressions. However, this is less common.
The Market for Paid Search
The market for paid search advertising is expected to grow from $182,886 million in 2021 to $256,105 million in 2025. That’s an 8.78% compound annual growth return (CAGR).
This is because customers are spending more time online. To reach them, businesses are realizing that they need to have a strong online presence and paid search is one of the easiest ways to get there.
The Power of Paid Search
Users resort to search engines to look up pretty much anything. Whether it’s the final score on a basketball game or the nearest restaurants in the area, Google is the standard go-to.
You can take advantage of the popularity of search by paying to have your ads placed in front of users searching for a particular keyword related to your product. For example, if you sell combs, you could pay to have ads for your combs displayed in the search results for “how to comb your hair.” This way, you not only get your brand in front of more eyes, but you get it in front of targeted leads who are already interested in your product.
The same goes for local businesses. If you sell pizza in Philadelphia and you pay to have your restaurant ad displayed in searches for “pizza places in Philadelphia,” you limit your advertising to high-quality leads.
Not only that, but pay-per-click (PPC) ads are becoming more effective with the help of automation and artificial intelligence (AI). Google has a wealth of behavioral data on its users, so its algorithms know exactly where to place your ads for the best results.
Search ads are also more responsive and dynamic than ever before. By helping you segment your audience into different buyer personas, search engines can tailor your ad message to each user. And the more personalized the ad, the higher the conversion rates.
You can also easily automate your ad campaigns and adjust them as you go. Start a paid search campaign today and end it whenever you want. They are highly flexible. This way, you don’t have to let an unsuccessful ad campaign drag on and you make sure you maximize your ROI.
Trends in Paid Search
To make the most of this powerful marketing tactic, you’ll want to stay on top of current paid search trends.
As people rely more on their phones, you’ll want to optimize your ads for mobile. Make sure they are relevant to mobile users. Also, consider the rising popularity of voice search and how that could impact how an ad is received.
Also, relying on third-party data is a thing of the past. Data privacy laws like the EU’s General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) make it near impossible. So it’s more important to focus on gathering first-party data through purchase history, website activity, and other interactions instead.
Video ads are also becoming more prevalent and effective. People are no longer as responsive to text ads. They’re much more likely to engage with an ad if it’s a video. It takes less energy to watch than to read, so video ads are the path of least resistance.
Paid Search Strategies
To have a successful paid search strategy, don’t stop your ad spend when things aren’t working. Rather, adjust your messaging.
For example, you might need to update your ad copy. Since many shoppers can’t shop in-person for health and safety reasons, you may need to change any in-store language like “come to our store near you.” Ads featuring vacation spots might now work either. You need to adapt your ads to your customers’ current situation.
You should also take advantage of the many data-driven insights available through AI and automation technology. As they say, information is power. And nowhere is this more true than in paid search marketing.
Diversify your paid ads by placing them across different platforms, too. Though Google is the number one paid search advertising platform, many shoppers go directly to ecommerce platforms like Amazon to start their search for products. So this is an opportunity to spread your ad exposure by running paid search campaigns on Amazon in addition to Google.
Finally, different verticals will require different strategies. So do your research on your industry and target audience to know how to best approach them.
Final Thoughts About The Future of Paid Advertising
Ultimately, paid search is a powerful tool to grow your business. Don’t be afraid to adapt and change it as you go. The best paid search ad campaigns are built from trial and error.
But if you need help developing an effective PPC strategy for your brand, Osborne Digital Marketing can help. Our marketing experts have the industry experience and skill to help make your advertising goals a reality. Reach out today to learn more.
