Your Guide to Understanding Search Engine Marketing & Getting More Out of Your Ad Spend

Effective marketing is no easy task. With so much competition and so many marketing options, today’s consumers have learned to filter out irrelevant advertising and ignore much of the marketing noise. 

In this environment, dealers who are hoping to grow their online presence must consider paid advertising strategies that cut through the clutter and reach customers during their critical decision-making moments.

In this comprehensive guide, you’ll explore the significance of an effective Search Engine Marketing (SEM) strategy and discover the best practices that pave the way for a scalable and cost-effective online marketing presence.

• What Is Search Engine Marketing?
• The Importance of Being Visible Online
• Common SEM Challenges for Dealers
• Best Practices for a Scalable & Cost -Effective SEM Campaign
• Partnering with an SEM Expert

What Is Search Engine Marketing?

Search Engine Marketing, or SEM, is a digital marketing strategy used to increase your website’s visibility in search engine results pages (SERPs). Unlike Search Engine Optimization (SEO), which seeks to achieve higher ranking through content relevance and website optimization, SEM uses paid ads that appear prominently on the search result pages. 

This approach allows you to capitalize on targeted keyword searches, driving more immediate and direct traffic to your website. It’s an effective marketing strategy, to be sure, but “SEM” has become a generalized term that is often misconstrued. In fact, SEM is often used to represent any form of paid advertising, including geofencing (location-based advertising) and social media ads.

At its core, SEM is more focused. It’s the use of search and display ads on search engine results pages (SERPs). 

• Search ads are text-based advertisements that appear on SERPs when a shopper searches for specific keywords. They are highly targeted and intent-driven, aiming to reach users who are actively seeking information, products or services. 
• Display ads are primarily visual advertisements that are placed on a network of websites across the internet. They can include images, videos or interactive media aimed at building brand awareness and retargeting. 

While search ads capitalize on user intent, display ads focus on capturing the attention of users who may not be actively searching yet but are likely interested in the advertiser's offerings based on their browsing behavior.

The Importance of Online Visibility

The consumer path to purchase can be confusing—winding between different websites and in-dealership visits. No two customer journeys are exactly alike. Increasing online visibility is your dealership’s most potent tool. It helps your dealership stand out so more shoppers can find you online. And it helps your dealership to better understand the buyer journey. 

Although no two purchase journeys are exactly alike, they often share similar waypoints. They usually begin with a spark of interest, followed by extensive research and consideration before reaching the purchase stage. SEM ensures that your dealership is marked as a destination at each of these crucial turns. From the initial “What is the right unit for me?” to the finer “What details do I want my unit to offer?”, your ads should be carefully mapped across these milestones.

Is SEM a Cost-Effective Strategy?

SEM is considered a cost-effective marketing strategy for several reasons. First, it allows you to precisely target potential customers who are actively searching for inventory or services you offer, ensuring that your marketing efforts are not only seen but are also relevant. This targeted approach enhances the likelihood of attracting interested buyers in a cost-effective manner, optimizing the return on investment.

Second, SEM allows you to customize your ad spend. SEM is most commonly associated with pay-per-click (PPC) advertising, where advertisers pay a fee each time their ad is clicked. You bid for ad placement in a search engine’s sponsored links section, so that your website appears when shoppers search for a related keyword. You can set ad spend limits to ensure you stay within your marketing budget each month.

Third, SEM gives you measurable ROI. SEM allows you to track the effectiveness of your paid ad campaigns in real time and make data-driven decisions to optimize your strategies. This adaptability reduces wasted expenditure and enhances the potential for higher returns, making SEM a highly attractive option if you’re looking to maximize your marketing budget. The average ROI for paid ads is $2 for every $1 spent.

Common SEM Challenges for Dealers

Even if SEM is a simple, focused marketing strategy, it can be somewhat complicated for many dealers to implement effectively. Consider the following common SEM challenges and ways to overcome them. 

Navigating the Big Budget Questions

Depending on the level of competition in your area, certain popular keywords may have a higher cost per click. If you have a limited ad spend budget, you may need to get creative with your SEM strategy. This approach is about being selective with your keywords, ruthless with underperforming ads and endlessly creative with what small spaces you can occupy in the user's screen. Treating each dollar spent as an investment in learning the digital labyrinth that is your consumer's mind is key.

Understanding Your ROI

The path to ROI in SEM is paved with data. From analyzing the more profitable keywords to understanding the peaks of user activity, transparency is not a gift in SEM—it's an earned outcome. Still, you can utilize tracking tools, conversion data and continual refinements to steer your SEM ship towards the land of returns.

The difficulty in understanding your ROI starts with knowing how Google is using your ad spend. Google frequently updates its algorithms, making it difficult to stay up to date on SEM best practices. As a result, many dealers need to rely on Google to manage their ad spend.

If you’re running search ads on Google, you may encounter transparency issues pertaining to how Google is using your ad spend to market your dealership. One way to circumvent this is to partner with an SEM vendor whose objective is to put your ad needs first and who can deliver more transparent metrics for your ad campaigns.

Best Practices for a Scalable & Cost-Effective SEM Campaign

Fuel Your SEM Results with Keywords

Identify and incorporate high-intent keywords that match the search queries of serious buyers. Examine the search queries that lead shoppers to your website or to a competitor’s site to help you uncover user intent.

Long-Tail Keywords

Long-tail keywords make up the majority of searches on Google. Use long-tail keywords, which are more detailed and often less competitive. These can lead to a higher conversion rate as they closely match the user's intent. These are the specific 'used dirt bikes for sale near me' queries that a generic 'dirt bikes' might overlook.

Negative Keywords

Negative keywords prevent your ads from appearing in search queries that don’t match what you offer. For example, if you don’t sell pre-owned inventory, you may choose to include “pre-owned,” “used” or “second hand” as negative keywords in your paid ad campaigns. Utilizing negative keywords helps to exclude irrelevant traffic and increase the relevancy of clicks, thereby reducing wasted ad spend and improving the overall ROI of the campaign.

Segment Your Campaigns

Segment your campaigns with precision to align with your prospects’ position in the funnel. SEM is not merely about being there—it's about being relevant. Segmenting your audience allows you to create targeted ads that speak directly to potential customers, not at them. 

From awareness to consideration to the final decision, your messaging should be custom tailored to each audience type. Top-of-funnel buyers might require a softer sell, with content around "how to choose the right unit," while bottom-of-funnel buyers may need that push with a “limited-time deal” or “free delivery” messaging.

Retarget Interested Website Leads

SEM champions the art of retargeting—those subtly compelling ads that trail behind, reminding shoppers of their interests and nudging them back to your site. As much as 98% of shoppers leave a website without converting, resulting in bounced leads. But the bounce doesn’t have to be the end. How your dealership handles the users who clicked away is what will determine your SEM success.

Unlike text-based search ads, display advertising relies on elements such as images and video to communicate an advertising message. These ads are placed on websites, social media platforms and digital environments (that are not search engines), aiming to drive qualified leads back to your website. Just remember to be selective with display ad images. Prioritize clarity and relevance. Include high-resolution photos that vividly showcase the unit or industry lifestyle and can captivate potential customers' attention. 

It's also essential to consider the emotions and lifestyles that your inventory represents. Choose images that evoke a sense of adventure, relaxation or productivity associated with their use. Incorporating lifestyle imagery that features people engaging with the product in a real-world setting can help prospects visualize themselves enjoying the benefits. You should also ensure that imagery aligns with your brand's values and aesthetic and will create a cohesive marketing strategy, enhancing brand recognition and trust.

Run Search & Display Ads Together

On average, it takes about eight touchpoints for a shopper to be ready to make a purchase, according to HubSpot, so you want your SEM strategy to maximize the number of times you can reach your prospects. When paired properly, running search and display ads in tandem can increase the reach and frequency of your ad campaigns. 

Traditionally, SEM has served as the last touch point before a sale – a shopper clicks on a paid ad and fills out a form on the website, and then drives to the dealership to make a purchase. Nowadays, your ads need to reach shoppers much earlier in the path to purchase, so you can stay top of mind and beat out the competition. A combination of search and display ads can help you maintain brand awareness and bring shoppers back to your site based on that recognition. 

Think of display ads as the billboards of the internet highway. They follow your potential buyers around on different digital platforms, regularly reminding them of what your dealership has to offer. Shoppers aren’t always ready to buy when they see your ads, but repeat exposure will ensure they remember your brand when the time comes to make a purchase.

Of course, display and search ads can also help you capture those potential customers who are ready to buy right now. When a shopper is ready to take the plunge and seriously pursue a purchase, they’re most likely to use search engines to narrow down their options. Search ads appear prominently in the search results, displaying the right keywords that a serious shopper is looking for. Between the two, search ads are more expensive, but display ads can offset the cost of your search campaigns by nurturing your shoppers until they’re ready to buy.

Run Paid Ads in Tandem with Your Organic Search Strategy

The two biggest drivers for website traffic are organic and paid search. Many smaller businesses often wonder whether they should dedicate their marketing budget to paid or organic strategies, but it should not be a question of one over the other.

If you’ve played the game of Monopoly, you understand the value of controlling the majority of the board. No matter where a player (in this case, an online shopper) lands, you want them to see your brand first.

The relationship between SEO and SEM is symbiotic. Wielding both as one integrated marketing strategy is akin to utilizing a two-stroke engine—each complements the other in a fine-tuned marketing machine. SEO lays the groundwork and helps you craft content that educates your audience about the value of your dealership and inventory. This includes optimizing website performance, content marketing and local SEO.

SEM, on the other hand, helps you overcome some of the hurdles that stand in the way.  It helps you stand out at the top of the rankings and puts more eyes on your website. It also speeds up your efforts by targeting hard-to-rank-for keywords that your website may not be able to rank for organically.

The insights you gain from SEM feed back into your SEO efforts, painting a more vibrant picture of user intent and behavior. Keywords that perform well in SEM can inform your content strategy, while SEO success stories can guide your SEM targeting. Both domains should engage in a constant dialogue, evolving with each other's victories and defeats.

Monitoring, Measuring & Adapting

An SEM campaign is not a static artifact, but a living entity that breathes on data and regular upkeep. It’s essential to monitor your campaigns, informed by the right KPIs. These include click-through rates, conversion rates and return on ad spend. Engage in A/B testing, remain perennial students of the competition and be ready to adapt your strategies as the SEM currents change.

Partnering with an SEM Expert

In a landscape as fluid as the digital realm, the role of an SEM marketing vendor is pivotal. Partnering with a vendor armed with industry experience and a firm grasp of the most effective search engine practices can mean the difference between a campaign that merely floats and one that truly flies.

Your chosen marketing vendor should be well-versed in the unique challenges and opportunities of your industry. They should exhibit a deep knowledge of SEM practices—bidding strategies, ad testing and budget optimizations—to drive greater brand awareness and position your dealership in front of serious buyers.

Transparency should be non-negotiable. Assess the vendor's reporting tools, their accountability to ROI and their ability to create a cohesive SEM roadmap. With the right marketing partner, you can use SEM to your advantage to work with your other marketing strategies to bring in more buyers to your business.