Paid Reference (SEA) and Google AdWords, How Does it Work?

SEA: What is it? Bases of Payment Referencing

The SEM (English, Search Engine Marketing) is a global term that includes two techniques of SEO, SEO (SEO or Search Engine Optimization) and paid search (SEA, the Search Engine Advertising), which is discussed in this article. SEO focuses on organic internet search (or SEO) while SEA relies on advertisements in search engines and on partner websites. The concept of paid search has become synonymous with several other terms such as keyword advertising or Pay Per Click (PPC), which characterizes an advertising model where advertisers pay their host only when someone clicks on the advertisement in question. The Google AdWords platform has a monopoly on online advertising tools and is, in fact, sometimes considered synonymous with paid search. We refer here to texts placed below, above or beside organic search results.

How Does SEA Work?

The principle of paid referencing is simple. To create an ad on a search engine, you will first need to define keywords that will be appropriate to the website you want to promote. It is important to find the exact word that Internet users use to ensure that the targeted products match the information requested. You can start writing your ad text only after you have established your keywords. Subsequently, set the price you want to pay when a user clicks on your ad. It’s a good way to stand out from the competition and let your ad appear in the search results. This is a very first step in a successful internet advertising campaign. Paid SEO specialists invest a great deal of their time in the preparation of their campaign as well as in its follow-up. Beforehand, budgets must be established and the regional disparities and disparities taken into account must be respected. Also, landing pages must be optimized and refer to online advertising. If these ads are well placed, it is possible to evaluate their performance and optimize your marketing strategy.

Some essays of texts and keywords are often necessary before launching a successful campaign.

How much does a Campaign for Advertising on the Internet?

The presence of an advertisement in a search engine is in principle free. The advertiser is only required to pay when someone clicks on their ad link and lands on their target page. Paid listings work on the Cost Per Click (CPC) model. In this context, it is up to the advertiser to determine the value of the click. The price of the auction depends heavily on the positioning that Google will give to your ad: The ad space will be granted at a bid commonly called real-time bidding.

Real Time Bidding: An Auction on Search Engines

Every time a user searches on the internet, Google determines whether the ads match the search terms and whether they are useful to users.

In the commercial field, keywords that create a lot of volume are the keystone of a successful advertising campaign. They allow tailored ads to be evaluated in a fraction of a second and ranked according to their relevance. The advertiser’s CPC bid plays an important role in the ad’s ranking. In addition to CPC, Google has a level of quality for its AdRank, which evaluates the ad and determine its position in the results page. High ranking means that the ad will be more likely to appear in the corresponding search results. Since the note is characterized by the CPC and the quality level, it can be deduced that:


With maximum CPC bid, the advertiser sets the price they’ll pay for each click on their AdWords ad. The higher the bid, the more likely the ad is positioned in the search results. Google delivers to its customers a high degree of transparency and all useful tools for understanding online advertising. A weekly and monthly budget will allow you to define how much you are willing to invest in paid search. Google will run the ads until their budgets are exhausted. A monthly budget of 300 euros can for example be sufficient for a publication for 30 days subject to an expenditure of 10 euros per day. The daily performance of the ad depends on the number of clicks it has generated and the competitive pressure that can vary between a few cents and several euros per click.

Google’s Quality Score

In order to avoid certain ads without added value for users appearing in search results, Google provides in addition to the CPC bid a quality level to evaluate the ranking of the ad. It focuses on the requirements of the user and integrates his behavior in positioning. A well-designed SEA campaign puts a website forward in search results with quality, relevant content, a high conversion rate and a long visit. A high CPC is not the only sign of successful advertising. According to Google, a good ad rank is characterized by the following quality-level components:

  • The expected click rates of an Ad: This criterion is based on the impression (or seen) frequency of an ad and its number of clicks. Advertisements with a high click rate are well referenced.
  • The Clickthrough rate of the display URL: If the URL used has resulted in a lot of clicks, the quality level assigned to the ad increases. Also, the display URL must not match the target link.
  • Landing Page Quality: The ad will be better ranked by Google if the site it is referring to is friendly, transparent and relevant.
  • Ad Relevance: The ads that appear at the top of search results must be in line with users’ searches. The more relevant the ad text, the better the ranking.

Objectives of an Online Advertising Campaign

Paid Search allows website administrators to place ads where potential customers search for products and information. Instead of imposing inappropriate advertisements on Internet users, the SEA ensures that they are targeted and adapted to Internet searches. If the ad and the landing page are in sync with users’ searches, it will be received more positively. These ads are generally well received by Internet users because of their relevance. For site administrators, the SEA is an effective tool for optimizing traffic, promoting a site, and generating conversions.

In general, companies use AES to achieve the following objectives:

  • Generate traffic: The primary objective of paid search is to manage the flow of visitors to a website. AES is a major source of traffic for new Web pages, where competition is hard to find a place for. The SEA, however, guarantees better visibility in search engine results.
  • Promoting market Recognition: Paid search is effective in increasing a brand’s visibility in a competitive market. The goal of an online advertising campaign is to ensure that the keywords for specific product or service groups are complemented by advertisements.
  • Generate Conversions: The benefits of paid search achieve the desired results only when the page experiences an increase in sales of products and services or a larger number of customers. Advertising systems such as Google AdWords allow site administrators to better understand when an ad leads to a conversion on a search engine, that is, when it is of interest to the customer.

When Pay Reference is Relevant?

Advantages of Paid Referencing:

  • Quickly visible results
  • Easy financial management
  • Wide range
  • Broad acceptance
  • Transparent billing

Disadvantages of Paid Referencing:

  • Constant costs
  • Strong competitive pressure on commercial keywords
  • Real expertise is needed on campaign monitoring to get a good return on investment

For companies wishing to implement a SEM budget, it is important to know what are the advantages of a SEA strategy and how it allows, better than SEO, to lead a website to success. What is certain is that the user prefers organic search results. It is estimated that between 10% and 20% of users click on sponsored links. Paid search cannot be considered as a substitute in Google’s positioning. In contrast, the SEA is increasingly seen as a complement in a marketing strategy. This is usually the case of websites that get lost in the mass because of too general keywords. The competitive pressure of organic research is too strong and the paid search can receive a short-term visibility. Since search engine advertising generates conversions, it is important to focus on research that relates to the topics you want to promote. An online shoe store must be accompanied by an advertisement with the following commercial keywords: “Shoe purchase” or “online shoe order”.

Pay Reference: For Who?

The size of a company in principle plays no role in the success of a SEA strategy. An online advertising campaign is influenced by the following factors: Location, product range and available budget. In particular, it is the small advertisers who must focus on the advertisements where the probability of return is the strongest.

It is recommended that you first limit your ad campaign to your primary area of ​​business. SEA is very useful for specialty vendors: Because ad placements are based on an auction system, the click price of an ad aligns with the competitive situation. On the other hand, some themes remain at a very affordable price, because of their niche market. This is also the case for whole sentences used in internet searches, which have a low volume of searches.

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