Another way search engine marketing is managed is by contextual advertising. Here marketers place ads on other sites or portals that carry information relevant to their products so that the ads jump into the circle of vision of browsers who are seeking information from those sites. A successful SEM plan is the approach to capture the relationships amongst information searchers, businesses, and search engines. Search engines were not important to some industries in the past, but over the past years the use of search engines for accessing information has become vital to increase business opportunities.[31] The use of SEM strategic tools for businesses such as tourism can attract potential consumers to view their products, but it could also pose various challenges.[32] These challenges could be the competition that companies face amongst their industry and other sources of information that could draw the attention of online consumers.[31] To assist the combat of challenges, the main objective for businesses applying SEM is to improve and maintain their ranking as high as possible on SERPs so that they can gain visibility. Therefore, search engines are adjusting and developing algorithms and the shifting criteria by which web pages are ranked sequentially to combat against search engine misuse and spamming, and to supply the most relevant information to searchers.[31] This could enhance the relationship amongst information searchers, businesses, and search engines by understanding the strategies of marketing to attract business.
Social media marketing involves the use of social networks, consumer's online brand-related activities (COBRA) and electronic word of mouth (eWOM)[75][76] to successfully advertise online. Social networks such as Facebook and Twitter provide advertisers with information about the likes and dislikes of their consumers.[61] This technique is crucial, as it provides the businesses with a "target audience".[61] With social networks, information relevant to the user's likes is available to businesses; who then advertise accordingly. Activities such as uploading a picture of your "new Converse sneakers to Facebook[75]" is an example of a COBRA.[75][76] Electronic recommendations and appraisals are a convenient manner to have a product promoted via "consumer-to-consumer interactions.[75] An example of eWOM would be an online hotel review;[77] the hotel company can have two possible outcomes based on their service. A good service would result in a positive review which gets the hotel free advertising via social media. However, a poor service will result in a negative consumer review which can potentially harm the company's reputation[78].
With the development of this system, the price is growing under the high level of competition. Many advertisers prefer to expand their activities, including increasing search engines and adding more keywords. The more advertisers are willing to pay for clicks, the higher the ranking for advertising, which leads to higher traffic.[15] PPC comes at a cost. The higher position is likely to cost $5 for a given keyword, and $4.50 for a third location. A third advertiser earns 10% less than the top advertiser, while reducing traffic by 50%.[15] The investors must consider their return on investment and then determine whether the increase in traffic is worth the increase.
Social networking sites such as Facebook, Instagram, Twitter, MySpace etc. have all influenced the buzz of word of mouth marketing. In 1999, Misner said that word-of mouth marketing is, "the world's most effective, yet least understood marketing strategy" (Trusov, Bucklin, & Pauwels, 2009, p. 3).[79] Through the influence of opinion leaders, the increased online "buzz" of "word-of-mouth" marketing that a product, service or companies are experiencing is due to the rise in use of social media and smartphones. Businesses and marketers have noticed that, "a persons behaviour is influenced by many small groups" (Kotler, Burton, Deans, Brown, & Armstrong, 2013, p. 189). These small groups rotate around social networking accounts that are run by influential people (opinion leaders or "thought leaders") who have followers of groups. The types of groups (followers) are called:[80] reference groups (people who know each other either face-to-face or have an indirect influence on a persons attitude or behaviour); membership groups (a person has a direct influence on a person's attitude or behaviour); and aspirational groups (groups which an individual wishes to belong to).
Social networking websites allow individuals, businesses and other organizations to interact with one another and build relationships and communities online. When companies join these social channels, consumers can interact with them directly.[3] That interaction can be more personal to users than traditional methods of outbound marketing and advertising.[4] Social networking sites act as word of mouth or more precisely, e-word of mouth. The Internet's ability to reach billions across the globe has given online word of mouth a powerful voice and far reach. The ability to rapidly change buying patterns and product or service acquisition and activity to a growing number of consumers is defined as an influence network.[5] Social networking sites and blogs allow followers to "retweet" or "repost" comments made by others about a product being promoted, which occurs quite frequently on some social media sites.[6] By repeating the message, the user's connections are able to see the message, therefore reaching more people. Because the information about the product is being put out there and is getting repeated, more traffic is brought to the product/company.[4]
Social media marketing involves the use of social networks, consumer's online brand-related activities (COBRA) and electronic word of mouth (eWOM)[75][76] to successfully advertise online. Social networks such as Facebook and Twitter provide advertisers with information about the likes and dislikes of their consumers.[61] This technique is crucial, as it provides the businesses with a "target audience".[61] With social networks, information relevant to the user's likes is available to businesses; who then advertise accordingly. Activities such as uploading a picture of your "new Converse sneakers to Facebook[75]" is an example of a COBRA.[75][76] Electronic recommendations and appraisals are a convenient manner to have a product promoted via "consumer-to-consumer interactions.[75] An example of eWOM would be an online hotel review;[77] the hotel company can have two possible outcomes based on their service. A good service would result in a positive review which gets the hotel free advertising via social media. However, a poor service will result in a negative consumer review which can potentially harm the company's reputation[78].

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YouTube is the number one place for creating and sharing video content, and it can also be an incredibly powerful social media marketing tool. Many businesses try to create video content with the aim of having their video “go viral,” but in reality those chances are pretty slim. Instead, focus on creating useful, instructive “how-to” videos. These how-to videos also have the added benefit of ranking on the video search results of Google, so don't under-estimate the power of video content!

In some contexts, the term SEM is used exclusively to mean pay per click advertising,[2] particularly in the commercial advertising and marketing communities which have a vested interest in this narrow definition. Such usage excludes the wider search marketing community that is engaged in other forms of SEM such as search engine optimization and search retargeting.
More than three billion people in the world are active on the Internet. Over the years, the Internet has continually gained more and more users, jumping from 738 million in 2000 all the way to 3.2 billion in 2015.[9] Roughly 81% of the current population in the United States has some type of social media profile that they engage with frequently.[10] Mobile phone usage is beneficial for social media marketing because of their web browsing capabilities which allow individuals immediate access to social networking sites. Mobile phones have altered the path-to-purchase process by allowing consumers to easily obtain pricing and product information in real time[11]. They have also allowed companies to constantly remind and update their followers. Many companies are now putting QR (Quick Response) codes along with products for individuals to access the company website or online services with their smart phones. Retailers use QR codes to facilitate consumer interaction with brands by linking the code to brand websites, promotions, product information, and any other mobile-enabled content. In addition, Real-time bidding use in the mobile advertising industry is high and rising due to its value for on-the-go web browsing. In 2012, Nexage, a provider of real time bidding in mobile advertising reported a 37% increase in revenue each month. Adfonic, another mobile advertisement publishing platform, reported an increase of 22 billion ad requests that same year.[12]
Several customers are turning towards social media to express their appreciation or frustration with brands, product or services. Therefore, marketers can measure the frequency of which customers are discussing their brand and judge how effective their SMM strategies are. In recent studies, 72% of people surveyed expressed that they expected a response to their complaints on Twitter within an hour.[111]
However, while bidding $1,000 on every keyword and ranking #1 for every relevant search sounds nice in theory, most businesses have to play a balancing game between ranking higher and paying too much for clicks. After all, if it costs $17.56 to rank in position #1, but you can only afford to pay $5.00 per click, bidding $1,000 on a keyword to guarantee yourself the #1 position would be a great way to bid yourself out of business.
AdWords is recognized as a web-based advertising utensil since it adopts keywords which can deliver adverts explicitly to web users looking for information in respect to a certain product or service. It is flexible and provides customizable options like Ad Extensions, access to non-search sites, leveraging the display network to help increase brand awareness. The project hinges on cost per click (CPC) pricing where the maximum cost per day for the campaign can be chosen, thus the payment of the service only applies if the advert has been clicked. SEM companies have embarked on AdWords projects as a way to publicize their SEM and SEO services. One of the most successful approaches to the strategy of this project was to focus on making sure that PPC advertising funds were prudently invested. Moreover, SEM companies have described AdWords as a practical tool for increasing a consumer’s investment earnings on Internet advertising. The use of conversion tracking and Google Analytics tools was deemed to be practical for presenting to clients the performance of their canvas from click to conversion. AdWords project has enabled SEM companies to train their clients on the utensil and delivers better performance to the canvass. The assistance of AdWord canvass could contribute to the growth of web traffic for a number of its consumer’s websites, by as much as 250% in only nine months.[30]
In the parlance of digital marketing, advertisers are commonly referred to as sources, while members of the targeted ads are commonly called receivers. Sources frequently target highly specific, well-defined receivers. For example, after extending the late-night hours of many of its locations, McDonald's needed to get the word out. It targeted shift workers and travelers with digital ads, because the company knew that these people made up a large segment of its late night business. McDonald's encouraged them to download a new Restaurant Finder app, targeting them with ads placed at ATMs and gas stations, as well as on websites that it new its customers frequented at night.
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