Week 4: SEM & Paid Search

While SEO is a long-term strategy, Search Engine Marketing (SEM)—specifically Google Ads—allows you to buy your way to the top of the search results immediately. Today we focus on Pay-Per-Click (PPC) advertising on the search network.

1. Pre-Work: PPC Mechanics & Quality Score

In PPC, you only pay when someone clicks your ad. However, Google doesn’t just show the ad of the person who bids the highest. They use a metric called Ad Rank.

Ad Rank = Maximum Bid × Quality Score

The Quality Score

Google assigns a Quality Score (1-10) to your keywords based on three factors:

  1. Expected Click-Through Rate (CTR): How likely are people to click your ad?
  2. Ad Relevance: Does your ad copy match the user’s search intent?
  3. Landing Page Experience: When they click, does your sandbox website deliver what the ad promised? Is it fast and mobile-friendly?

High Quality Score = Lower Cost Per Click (CPC) and Better Ad Positions.

Keyword Match Types

To control who sees your ads, you use match types:

  • Broad Match (keyword): Reaches the widest audience, but lowest intent. (e.g., searches for “free shoes” might trigger your ad for “buy running shoes”).
  • Phrase Match ("keyword"): Searches that include the meaning of your keyword.
  • Exact Match ([keyword]): Searches that are exactly your keyword or close variants. Highest intent, highest cost.
  • Negative Keywords: Terms you don’t want to show up for (e.g., -free, -cheap).

2. Lab Session: Structuring a Google Ads Campaign

Today, we will navigate the Google Ads interface and build a mock campaign structure for your sandbox. (Note: No real money will be spent. This is a structural exercise).

Campaign Structure

A well-organized account is crucial for success.

mindmap
  root((Google Ads Account))
    Campaign 1 Brand Terms
      Ad Group Brand Name
        Keywords
        Ad Copy A
        Ad Copy B
    Campaign 2 Non-Brand Commercial
      Ad Group Product A
        Keywords
        Ad Copy A
        Ad Copy B
      Ad Group Product B
        Keywords
        Ad Copy A
        Ad Copy B

Writing Effective Ad Copy (A/B Testing)

You should never write just one ad. Always write at least two variations to see which performs better (A/B testing).

  • Ad A: Focus on features/price.
  • Ad B: Focus on emotional benefits/urgency.

Budget Allocation & Bidding

How much should you bid? This ties back to Week 1: If your customer LTV is $500, and your website converts at 5%, how much can you afford to pay for a single click (CPC) to maintain a profitable CAC? We will run this calculation in the lab.

3. Deliverable

A documented campaign structure with ad variations and a brief rationale.

  • Outline 1 mock Campaign and 2 Ad Groups.
  • List 5-10 keywords (with match types) and at least 5 Negative keywords.
  • Write two text ad variations (A/B test) for one of the ad groups.
  • Provide a short explanation of your proposed budget and bid strategy.

Submit the document before the start of Week 5.