Search advertising is a highly effective way to attract targeted traffic and boost conversions. By appearing at the top of search engine results, search engine ads connect businesses with potential customers who are actively searching for related products or services.
With the help of our experts, we’ll explore how search ads work, their benefits, and the key metrics to measure campaign results. Let’s get started!
Table of Contents
- How Does Search Advertisement Work?
- 3 Main Search Ad Components
- Search Advertising Formats
- Best Platforms for Search Advertising
- Best Practices To Create Search Ads That Convert
- 4 Key Metrics To Measure the Success of Your Search Advertising Campaign
- Search Advertising Takeaways
- Search Advertising FAQs
How Does Search Advertisement Work?
Search ads target the exact keywords that customers enter, bringing traffic to business websites and a high conversion probability. These ads work on a pay-per-click (PPC) principle, an auction-based advertising model. Every time a user clicks on the ad, the business is charged a predefined fee. The placement, frequency of appearing in search engine result pages (SERPs), and the price depend on the bid and quality score.
When placing a bid, advertisers enter the maximum amount they are willing to spend for a click (bid) and the total amount for the entire advertising campaign (budget). The search engine algorithm calculates the quality score of the ads and the bids from each advertiser and then determines positioning.
Search ads are highly cost-effective, as you pay only when someone clicks on their ad — not for an impression, but for a real chance to convert. In fact, search ad spending in the US reached $306 billion in 2024. These ads are undeniably a cornerstone of digital marketing, allowing you to reach your audience when they look up related keywords.
3 Main Search Ad Components
Each search ad has three main elements: headline, URL address, and description text. These three elements aim to convince users to click on the ad.
1. Headline
Headlines attract the most attention; therefore, they should be appealing, convincing, and relevant to the search query. Optimize headlines with keywords to draw the audience most likely to convert. If possible, include a call to action (CTA) in the headline text. Google and Bing allow three headlines with a maximum length of 30 characters.
2. The URL Address
The display URL is the link shown in your ad. Make sure it is closely related to your product or service and avoid long or complex URLs that may confuse users. The URL should align with your ad’s headline and content.
3. Description Text
The description provides more detailed information about your product or service. You can use two description fields, each allowing up to 90 characters. This is your opportunity to elaborate on what makes your offer unique and why users should choose your business over competitors.
Focus on what matters most to the user based on their search intent. Include keywords strategically and reinforce your CTA from the headline with phrases that inspire action.
Search Advertising Formats
Search ads come in various formats, each designed to target specific goals and reach users in different ways. From traditional text ads to more dynamic options like responsive search ads, choosing the right format is key to running successful campaigns.
1. Text Ads
Text ads are the most common and straightforward format in search advertising. They consist of a headline, a display URL, and a brief description of the brand offer. They provide a clear and concise message that directly addresses user queries.
2. Text Ads With Ad Extensions
Text ads with extensions contain additional information about your company besides the main textual content. Extensions can contain call or message buttons, location directions, links to relevant web pages, prices, lead forms, or other important information.
3. Product Shopping Ads
Product shopping ads are virtually rich ads that display specific products, including an image, title, price, store name, and more, directly in search results. These ads drive more conversions by matching user intent directly with a relevant product.
4. Call-Only Ads
These ads appear in search results on mobile devices and are designed to encourage users to contact your business directly by phone, without visiting a website. They display your business name, phone number, and a brief description, with a call button for easy contact. This is a highly cost-effective type of ad, ensuring efficient spending for direct engagement.
5. App Promotion Ads
App promotion ads are tailored specifically to drive app downloads or re-engagement. These ads appear in search results or across Google’s display network and prompt users to download or interact with a mobile app. They include an app name, description, and an install button, making it easy for users to take immediate action.
Depending on your goals, you can choose between three subtypes of app promotion ads:
- App installs
- App engagement
- App pre-registration
Best Platforms for Search Advertising
Most search engine platforms provide search advertising: Google offers Google Ads, Bing has Microsoft Ads, and Yahoo delivers Native Advertising. Here’s a breakdown of the leading desktop search engines worldwide in terms of market share (2024):
- Google: 81.95%
- Bing: 10.51%
- Yahoo: 2.67%
- YANDEX: 2.42%
- DuckDuckGo: 0.69%
- Baidu: 0.53%
Mobile search is quite different in terms of rankings and percentages:
- Google: 95.37%
- YANDEX: 1.56%
- Baidu: 0.9%
- Bing: 0.51%
- Yahoo: 0.48%
- DuckDuckGo: 0.46%
It’s not surprising that Google generates the most traffic of all search engines, but that doesn't mean it should be the only platform you advertise on. Bing and Yahoo attract niche audiences, so a combined approach will help you capture users who prefer or exclusively use alternative search engines.
Furthermore, Bing and Yahoo have less competition than Google, resulting in lower CPC rates. This can help you stretch your ad budget further while still reaching a high-quality audience.
Best Practices To Create Search Ads That Convert
Creating search ads that truly resonate with your audience and drive conversions requires a strategic approach. Here are some essential tips and best practices:
- Optimize for mobile: Make sure your ads and landing pages are optimized for mobile devices, as they account for nearly 60% of all global website traffic.
- Test ad variations: Perform A/B testing on different headlines, descriptions, and CTAs to determine which combinations perform best.
- Use negative keywords: Add negative keywords to your campaigns to prevent your ad from appearing in irrelevant searches. This ensures your budget is spent only on high-quality leads.
- Address customer needs: Your ads should focus on how your product or service can solve your customers’ problems or fulfill their desires. Highlight key benefits that resonate with their needs.
- Leverage ad extensions: Sitelinks, callouts, and location extensions provide extra information to users. They improve ad performance by increasing visibility and encouraging users to complete certain actions.
- Ensure a seamless experience: Your landing page should align with ad content. Provide a clear path to conversion and ensure purchase and signup links are easy to find and click on.
- Monitor and adjust bids: Regularly track ad performance data and adjust your campaigns to optimize results over time.
4 Key Metrics To Measure the Success of Your Search Advertising Campaign
With an effective PPC strategy, you will notice an increase in traffic and sales shortly after your ad starts running. Monitoring key metrics will give you valuable insight into your ad’s performance. Once you know what’s bringing results (and what isn’t), you can adjust and optimize your advertising campaign to its maximum potential.
Here are the most important search ad metrics you should track:
1. Click-Through Rate (CTR)
CTR is a key metric in search advertising and PPC reporting. It shows the number of visitors who clicked on your search ad and ended up on your landing page. Those visitors are considered to be interested parties, aka leads.
To calculate CTR:
(Clicks ÷ Impressions) x 100 = CTR
The average CTR for search ads across all industries is 3.7%. A good CTR depends on many factors, including keyword difficulty and your industry.
CTR shows how well you designed your search ad and how much of your audience you are attracting. If yours is low compared to industry benchmarks or other ads in other campaigns, adjust and A/B test the headline, targeted keywords, ad copy, or CTA.
2. Conversion Rate
The conversion rate shows how many leads clicked on your ad and completed the desired action on your landing page, whether it is to purchase an item, sign up for a subscription, subscribe to your newsletter, or answer a survey.
To calculate the conversion rate:
(Total conversions ÷ total clicks) x 100 = Conversion Rate
A high conversion rate means your ads and landing pages are well-targeted and encourage users to take action. The more value you generate per click, the better your ROI. You can feel confident spending more on ads and keywords with higher conversion rates to capture more valuable traffic.
To improve conversion rates, punch up your ad copy, adjust your keywords, and optimize your landing page experience.
3. Cost Per Action (CPA)
Cost per action, also known as cost per acquisition, measures the average amount you pay for each desired action. It provides insights into the cost-effectiveness of your advertising efforts.
To calculate CPA:
(Total ad spend ÷ total conversions) = CPA
A low CPA means you’re getting more conversions for less money. Conversely, a high CPA indicates inefficiencies in your campaign that need adjustments.
This metric will help you understand whether you’re paying too much to achieve your campaign goals. You can allocate ad spend to the highest-performing keywords, ad groups, or campaigns and reduce or rework underperforming ads.
4. Quality Score
Google defines quality score as “an estimate of the quality of your ads, keywords, and landing pages. Higher quality ads can lead to lower prices and better ad positions.”
Three important components determine quality score:
- Click-through rate
- Ad relevance
- Landing page experience
The quality score can range on a scale from 1 to 10, and it gives valuable insights into your ad’s performance:
- 1 to 5: Your ad is underperforming compared to competitors, and there is a very small chance that it will appear in search results. If three quality score components rate below average, your quality score will be rated 5 or lower.
- 6: This indicates average performance compared to other keywords that target the same traffic. If quality score components rate average or below average, the final score will probably be 6.
- 7 to 10: This shows your keyword is very competitive, and you’re getting more clicks than other keywords that target the same traffic. If all three quality score components are above average, your final score will be 7 or higher.
Search Advertising Takeaways
Search advertising is an effective strategy that can help grow your business, regardless of its niche and size. You can promote your offerings on different search engine platforms using various types and formats of search ads and capture your target audience with compelling ad copy and CTAs.
Working with the top PPC agencies will help you optimize ad performance, ensure efficient budget use, maximize ROI, and stay updated on industry trends.
Search Advertising FAQs
1. What are the benefits of search ads?
Search advertising offers benefits like specific targeting, measurable results, and the ability to control costs with flexible budgets and robust bidding strategies. You can reach potential customers who are actively searching for relevant products or services and lead them further down your sales funnel.
2. How is search advertising different from SEO?
Search advertising is a paid strategy that delivers immediate visibility on SERPs. In contrast, search engine optimization (SEO) focuses on organic rankings through content and site optimization, which can take longer to achieve.
3. What is the cost of search advertising?
The cost of search advertising varies depending on the ad platform, your bidding strategy, your industry, and the competitiveness of the keywords. Google Ads cost an average of $0.11 to $0.50 per click.
4. Can small businesses benefit from search advertising?
Yes, small businesses can greatly benefit from search advertising. Through precise targeting and spending control, you can reach highly relevant audiences without needing a massive budget. This strategy is a cost-effective option for driving traffic and conversions.
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