What Is Paid Search?

Written by Coursera Staff • Updated on

Learn more about paid search, a key marketing strategy used to reach a targeted audience.

[Featured image] A person with curly hair wearing a yellow sweater searches the internet on a smartphone from a cafe.

Key takeaways

Paid search is the method of paying to have ads appear on search engine results pages (SERPs). 

  • Paid search, which refers specifically to ads that are placed on search engines, may include local, text, and shopping ads. 

  • Paid search requires brands to pay search engines for a higher position on search engine results pages (SERPS), while brands can use search engine optimization (SEO) strategies to boost their website’s visibility. 

  • You can incorporate paid search into your marketing strategy to gain insight into your customers’ behaviors.

Learn about paid search advertising, including what it is, types, and benefits, and discover how you can use it as part of your marketing strategy. If you’re ready to fast-track your career in digital marketing, consider the Google Digital Marketing & E-commerce Professional Certificate. You’ll have the opportunity to learn the fundamentals of digital marketing and e-commerce, including measuring marketing performance, building e-commerce stores, and leveraging digital marketing channels to attract and engage customers. 

What is paid search advertising?

Paid search is the method of paying for ads that appear on search engine results pages (SERPs). Each time a user clicks on an ad, the business pays a set fee to the search engine provider. This is pay-per-click, or PPC, advertising. While PPC ads are available on social media platforms, paid search specifically refers to ads that are placed on search engines like Google or Bing.

When someone enters a phrase into a search engine, the results displayed to them are typically a mix of paid search results and organic results. Paid search results appear at the top of the SERP, while organic or non-paid results appear beneath. 

What are the benefits of a paid search marketing campaign?

Paid search is an essential part of a successful marketing strategy because it provides insight into customer behavior that’s difficult to learn otherwise. With paid search ads, you have the ability to track each customer’s engagement from the initial click-through to a final sale. This information is key when deciding how to set up future ad campaigns since you’ll have concrete data on which keywords or copy were the most successful.

Three types of paid search ads exist:

  • Local ads: Designed for businesses with physical locations. These ads display contact information, addresses, and reviews to strengthen a local presence.

  • Text ads: Appear at the top of a SERP and include URLs and some simple copy. They may also appear at the bottom of a search results page.

  • Shopping ads: Designed for products and typically include images and purchase information as part of the ad itself.

Read more: What are the Most Effective Marketing Channels?

What is paid search vs. SEO?

Paid search, which Google calls pay-per-click (PPC), requires brands to pay search engines like Google and Yahoo to display their ads at the top of search engine results pages and increase visibility on social media platforms. Marketing tactics like PPC work in tandem with search engine optimization (SEO). SEO strives to boost websites’ visibility to generate organic traffic using strategies, such as incorporating relevant keywords, creating content that offers value to readers, and building a trustworthy website.

How does paid search work? Paid search analytics and quality scores

Once you design an ad, the search engine creates a quality score. This score considers the ad's relevance to the keywords used, the value of the landing page the ad leads to, and the expected rate at which customers will click through. Google uses this score to assign how much a business pays each time someone clicks on the ad. It also determines where the ad ranks among other paid search results; ads with higher quality scores rank toward the top of the results.

When creating ads, know your target audience so you can be in tune with what they are specifically looking for. This insight helps you choose relevant keywords and provide true value to customers when they click on your ad. Targeted, well-researched ads increase your return on investment (ROI) and conversion rates, potentially leading to higher profits and customer retention.

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