By Alison Engelsman, Media Strategist
This is the first article in a series of three.

Search Engine Marketing (SEM) is definitely not a new term for advertisers, but it is unquestionably the fastest growing and most successful phenomenon in on-line advertising. Since its infancy, SEM spend has increased substantially, accounting for only 1.3% of total online spend in 2000 to now whopping 42.5% in 2006 (eMarketer, April 2007). SEM has become the topic of books and blogs, a subject matter in higher education programs, and the cost of Google stock has soared to almost $500 a share due to the success of SEM. Famed media mogul, Barry Diller, has purchased Ask.com, renamed from AskJeeves.com, and has launched a new marketing campaign to promote the redesigned site. Yahoo! has launched their billion-dollar search program Panama, and even Microsoft has been enhancing their search program by offering SEM advertisements of their own. By anyone's standards, SEM is hot and is showing no signs of turning off the heat.

Shaker has been actively utilizing SEM for over two years and has a team dedicated specifically to these campaigns. Clients who have utilized SEM have seen an increase in traffic flow to their online career centers and have even had applicants specify that they found their opportunity through results on the search engines. However, although SEM has proven to be extremely effective for recruitment advertising, recruiters have been gradually incorporating it into their media strategies. Already in use by job boards for years as a way of attracting job seekers to their sites, employers across the board are starting to realize the advantage of utilizing SEM in their marketing efforts. This shift has placed great importance in truly understanding SEM, its capabilities, the marketplace, and what the future holds. In this first part of a series on SEM, we will examine the concept of SEM as well as explore the value it adds in this next evolution of recruitment advertising.

SEM Beginnings
Developed as an information highway, the World Wide Web has afforded anyone around the world (access to a computer and an Internet connection) the ability to publish content, check email, and/or find a job among other functions. With user-friendly technology and the financial opportunities available in operating an on-line business, more than 100 million web sites have sprung up (CNN, October 2006) and more are on the way. However, in order to navigate through this extensive "library" one needs the help of a search engine to sort through the available web pages. Search engines, such as Google, Yahoo!, Ask, and MSN, act as information retrieval systems in which users are able to ask for content and information based upon search queries or keywords. Their functionality supports why 80% of Internet traffic begins at a search engine (Harris Interactive Study) and on a daily basis more than 38 million people are utilizing search functions. In short, search engines have become a necessity in the lifestyle of Internet users in which finding information quickly is a main objective. However, from the perspective of Internet advertisers a new challenge arises...how can I guarantee my site will be found on a search engine?

Internet marketers initially responded with Search Engine Optimization (SEO). Search Engine Optimization focuses on increasing ranking within the search results pages for particular keywords through modifications in the website structure and content. However, each search engine's algorithms vary and are changed on a regular basis to enhance the search experience. These obstacles, combined with the need to constantly monitor and adjust an entire web site, leaves SEO as a high-cost gamble that can yield mixed results.

The search engines response for a more efficient means to properly position a company's products, services, or employment opportunities was addressed by offering advertising in the form of paid results, hence the birth of SEM. With the development of paid results, search engines have transformed themselves from acting as information retrieval systems to efficient marketing machines. In the high-speed world of information, advertisers have been forced to re-evaluate their traditional methods. Consumers now have the ability to "choose" what they want, and this includes advertising. So a major necessity for advertisers has been in incorporating relevancy to engage their audience. SEM offers a positive solution to both advertisers and consumers with regard to these aspects. Consumers search using keywords of their choice, and advertisers pay to appear under the terms they find relevant for their target audience. The result: an instant hit for both users and advertisers with over 70% of search engine users saying they are "ok" with paid results (Pew Internet & American Life), and advertisers pouring millions of dollars into SEM campaigns (eMarketer).

SEM 101
SEM campaigns function on a pay-per-click (PPC) model in which advertisers only pay if a user clicks on their ad. Set up in an auction-based format, advertisers bid on each keyword of their choice against other advertisers in order to gain placement in the paid listings. This gives complete budgetary control to the advertiser. So, gone are the days in which advertisers are told what a campaign will cost - now advertisers are able to utilize a platform that allows them to balance their performance with their budget, creating a synergized solution.

Each SEM campaign is also flexible with various targeting capabilities and can be tracked through reporting technology that is available from the search engines. Since campaigns are keyword targeted, advertisers dictate which users they would like to precede in listings based upon information they would be actively seeking. Not only can advertisers compile a detailed campaign of search terms, but they also have the ability to target users by location in utilizing geo-targeting technology.

Reporting technology is another driving advantage of using SEM. Advertisers are able to track total impressions, clicks, cost-per-click, click-through rate, and total media spend. Analytic programs are also available for further tracking. With the use of analytic programs, advertisers are able to track where each respondent has navigated once they have hit the landing page on their site. This information provides invaluable market research on the effectiveness of one's web site and to what users are looking for once they have entered.

Value in Recruitment SEM Campaigns
SEM definitely has its positive attributes, control being one of them. With SEM, all aspects of the campaign are controlled; budgets, creative, and even the timing of a company's advertisements will appear. By functioning on a PPC model, recruiters only pay if a user finds their ad relevant to them and clicks on it. This leverages SEM to literally be a "no risk" advertising medium. Advertisers are also given control over creative with options to modify their message throughout the course of a campaign. Since SEM campaigns are compiled of a variety of keywords, an advertiser's message will need to correlate with each keyword. The search engines allow for multiple sets of creative to be used at the same time so that advertisers can "test" different messages. Then through reporting technology, advertisers are able to analyze which creative is working the best and then push that to users.

Another important feature to SEM campaigns is that they are run in real time. Advertisers choose when they want their campaign to turn on and off. This flexibility is well suited for recruitment and campaigns are able to be launched within the course of a day. So for instance, if an employer is having a last minute job fair or open house and traditional means of advertising aren't available, running an SEM campaign can assist with promoting the event. Search engines also have day-part technology available which enhances control for advertisers. SEM campaigns can be turned on and off throughout the day which is great for recruiters looking to fill positions in unusual time slots, for instance a third shift nurse.

Although SEM has been found to be effective and valuable in the right circumstances, it has also been welcomed with a few concerns from recruiters. Common arguments against utilizing SEM have been: 1) We are already using job postings, 2) if job boards are already using SEM why should we allocate funds into this advertising venue?, and 3) my type of hire doesn't go online. However, as with any advertising strategy, a diversified media plan is critical to success. The Internet is here to stay, with individuals utilizing the Internet for various purposes in greater numbers than ever before. In order to effectively target these individuals, traditional means of Internet advertising have been used by recruiters. Yet, it is hard to avoid the fact that search engines are becoming the emerging platform that has Internet users united in a single marketplace. So when arguments are being made on the basis of value in SEM, the major issue at hand is, can you afford not to be found in this high volume landscape?

SEM offers employers the ability to appear to job seekers when they are first beginning their job search. If a job seeker is using a search engine, they have already made a choice to proactively seek out information in regards to finding a new job. Perhaps they have entered the search query "engineering job" or "jobs in sales". Recruiters are able to bid on these terms to have their opportunities appear in the form of a paid search result. This makes SEM a "pull" advertising method versus a "push" method. So instead of recruiters pushing their message to reach job seekers, recruiters are able to take advantage of connecting with active job seekers who are in a way pursuing you.

Overall, job seekers are leaning on the search engines more than ever to help them in their job search. Just alone, the word "jobs" is searched over 25,000 times daily on search engines (Wordtracker.com). Through SEM, your company and employment opportunities will be found no matter if you are a Fortune 500 company or a local business. In addition, with its various targeting abilities and PPC model, SEM is valuable because it drives traffic to your site, and the traffic is in the form of an individual who has made two very important decisions. First, they have already begun their search to find information that you offer. Second, out of the results, they have chosen you as their interest, making these potential candidates priceless and making SEM a definite must on every recruiter's to-do list.

SEM is showing no signs of slowing down and the fast-paced evolution is beneficial for both advertisers and users. In the next part of this series, we will take an in-depth look at meeting the players in this high stake game of "hide and seek". Who is offering paid placement? Who is connected to whom within individual content and search networks? These are just a few topics we will address.

In the meantime, I would like to hear from you! What are your thoughts or questions on SEM? This series will be interactive, so feel free to drop a line at seminfo@shaker.com and we will address your feedback. Or, contact our SRAC department for a free SEM assessment.