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Paid search

1. Paid search

Welcome back. In this chapter, we will look more closely at paid search, one of two channels often used at the awareness stage of a marketing journey.

2. Paid search

In paid search, companies pay search engines to appear at the top of the results for a specific set of keywords. This is also known as "pay per click". In our previous example of custom dog collars, if I want people who search “custom embroidered dog collars” to end up on my page, I can pay a search engine to appear at the top of the results for this phrase. Even though this phrase contains multiple words (4, to be exact), it is still referred to in marketing as a “keyword”. The words written in the ad, in this example, "Etsy, Personalized Dog Collars” is known as the ad copy. If 1,000 individuals view the ad, the ad is said to have 1,000 impressions.

3. Branded and unbranded keywords

Keywords are split into two groups: branded and unbranded. A branded keyword is one where your company name appears in the search query, whereas unbranded means the company name is not included. “Custom embroidered dog collars” is an unbranded search, but if I name the company “ABC: All Beautiful Collars”, then the keyword “ABC: All beautiful collars custom embroidered” would be considered a branded search.

4. Branded and unbranded keywords: strategy

Companies spend on both branded and unbranded search. Unbranded search helps them reach new potential customers, which typically has a greater number of impressions. Branded search helps them reach individuals who already know about their company. Why spend on branded search if a customer already knows what company they’re looking for? If a company doesn’t, their competitors can and might steal market share. In our previous example, if company XYZ dog collars bids on the “ABC: All beautiful collars custom embroidered” keyword, and ABC doesn’t bid, XYZ could capture some of ABC’s customers.

5. Exact and phrase/broad match

Keywords are also given a match type. Exact match means every single word must appear precisely in the same order. Phrase/broad match allows the ad to be shown for keywords the search engine deems similar. Returning to our custom embroidered dog collars keyword, in the case of exact match, that is the only keyword the ad will show for. In the case of phrase/broad match, the ad could also show for similar keywords like "customized dog collars" or "unique dog collars" in addition to "custom embroidered dog collars".

6. Ad group

A keyword, its match type, and whether it should appear on desktop or mobile, are typically put together in an ad group. An ad group is a series of one or more ads that share a target audience, as shown here in the example for snacks.

7. Auctions

Notice how we have used the word “bid” when talking about spending on keywords. That’s because search engines operate just like an art auction you may have seen in movies. The search engine (the vendor) holds an auction looking to get the highest bid for a keyword (which ends up being the advertiser's cost per click). The winning prize is the first place location in results, given that the page is also a good fit for the keyword.

8. Impression share

Also like an auction, buyers give search engines a budget for each keyword. Once the budget is reached, other individuals who search the same keyword will not see the ad and therefore will not be counted as an impression. The ratio of impressions to eligible impressions (those who could have seen the ad) is called the impression share.

9. Let's practice!

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