Special Report: Sponsor's Statement: Digital lab - The five steps to SEO heaven

More companies are discovering the benefits of search engine marketing as they learn that it can be cheaper than traditional advertising or direct mail.

There are various ways to maximise ROI. Before embarking on an SEM campaign, understand what you're looking to achieve and why. Do you have any targets, such as increasing sales by a certain percentage or increasing hits to a site? With clear goals and metrics in mind, your SEM provider will be able to advise the right strategy.

Ensure you use search engines that work for you. The last 12 months have seen more people using vertical-specific search engines such as price-comparison sites. Traffic on these can produce higher conversions as shoppers are often likely to buy rather than just browse.

Think about the keywords and phrases your customers will search for.

The highest rankings are not always worthwhile and bidding on less competitive, low-volume keywords can be just as effective.

Tracking SEM campaigns is vital for understanding which search terms produce the best conversions. Four metrics should be considered: keywords, keyword groups (broader themes relating to the keyword); creative (page design/ad); and the website landing page.

Finally, ensure you monitor campaigns daily using automated tools to understand why clicks have increased or decreased or which keywords underperform.

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