Search engine marketing (SEM) is a form of Internet marketing that involves the promotion of websites by increasing their visibility in search engine results pages (SERPs) primarily through paid advertising. SEM may incorporate search engine optimization (SEO), which adjusts or rewrites website content and site architecture to achieve a higher ranking in search engine results pages, enhance pay-per-click (PPC) listings, and increase the call to action (CTA) on the website.
Market In 2007, U.S. advertisers spent US $24.6 billion on search engine marketing. In Q2 2015, Google (73.7%) and the Yahoo/Bing (26.3%) partnership accounted for almost 100% of U.S. search engine spend. As of 2006, SEM was growing much faster than traditional advertising and even other channels of online marketing. Managing search campaigns is either done directly with the SEM vendor or through an SEM tool provider. It may also be self-serve or through an advertising agency. Search engine marketing is also a method of business analytics, which is mainly aimed at providing useful information for organizations to find business opportunities and generate profits. SEM can help organizations optimize their marketing and gather more audience and create more customers.
Google's market dominance As of May 2026, Google remained the leading search engine worldwide with a market share of 90.39%. Bing ranked second with a 5.03% share, followed by Yahoo! (1.40%), Yandex (0.99%), DuckDuckGo (0.71%), and Baidu (0.53%). In August 2024, a U.S. federal court ruled that Google's search engine was operated as part of an unlawfully maintained monopoly in the general search services market. During the trial, the US Department of Justice argued "Google hasn't just illegally cornered the market in search — it's squeezed online publishers and advertisers with a "trifecta" of monopolies that have harmed virtually the entire World Wide Web". In 2025, Google began integrating paid advertisements directly into its AI Overviews feature, which generates AI-produced summaries at the top of search results pages. At Google Marketing Live in May 2025, the company announced that Search and Shopping ads within AI Overviews would roll out to desktop users in the United States, with global expansion planned later in the year. Research published in December 2025 found that ads alongside AI Overviews had grown from appearing on approximately 3% of AI Overview search results pages in January 2025 to roughly 40% by November 2025.
History As the number of sites on the Web increased in the mid-to-late 1990s, search engines started appearing to help people find information quickly. Search engines developed business models to finance their services, such as pay per click programs offered by Open Text in 1996 and then Goto.com in 1998. Goto.com later changed its name to Overture in 2001, was purchased by Yahoo! in 2003, and now offers paid search opportunities for advertisers through Yahoo! Search Marketing. Google also began to offer advertisements on search results pages in 2000 through the Google AdWords program. By 2007, pay-per-click programs proved to be primary moneymakers for search engines. In a market dominated by Google, in 2009 Yahoo! and Microsoft announced the intention to forge an alliance. The Yahoo! & Microsoft Search Alliance eventually received approval from regulators in the US and Europe in February 2010. Search engine optimization consultants expanded their offerings to help businesses learn about and use the advertising opportunities offered by search engines, and new agencies focusing primarily upon marketing and advertising through search engines emerged. The term "search engine marketing" was popularized by Danny Sullivan in 2001 to cover the spectrum of activities involved in performing SEO, managing paid listings at the search engines, submitting sites to directories, and developing online marketing strategies for businesses, organizations, and individuals.
Methods and metrics Search engine marketing uses at least five methods and metrics to optimize websites.
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