Types of Search Engine Marketing: Updated Guide

What are the different types of search engine marketing?

Search engine marketing isn't a single product you switch on; it's a collection of formats, each suited to a different point in the customer journey. A retailer selling physical products has very different needs to a B2B services firm targeting a defined geographic area, and using the wrong format for the goal, or ignoring formats that could genuinely help, tends to waste budget regardless of how well individual campaigns are optimised.

This guide sets out the main types of SEM available to UK businesses today, how AI has changed how each one is built and managed, and how to decide which combination is right for a particular business. It builds on our broader guide to what search engine marketing is, so start there if you need the fundamentals first.

Key takeaways

SEM covers several distinct formats: standard text ads, shopping, local, remarketing and Bing paid search
The right combination of formats depends on business model, sales cycle and customer catchment area
AI has changed how bidding, targeting and even ad creative are generated across every format
Organic SEO sits alongside SEM in most modern usage rather than being classed as a type of it
Shopping and product advertising suit ecommerce; service businesses usually rely more on search and local formats
Search remarketing lets advertisers bid more competitively on people who already know the brand

What counts as search engine marketing today?

Today, search engine marketing generally refers to paid advertising activity across search engines, standard text ads, shopping listings, local ad extensions and remarketing, run through platforms such as Google Ads and Microsoft Advertising. Organic search engine optimisation is closely related and often planned alongside SEM, but is typically treated as a distinct discipline with its own specialists, tools and pricing models rather than a "type" of SEM itself.

Paid search advertising

Standard paid search, text ads that appear above or within organic results, remains the core of SEM for most businesses. It works by matching ads to keywords or broader intent signals, competing in a real-time auction, and charging per click. This format suits businesses with a clear, searchable product or service and is usually the natural starting point before layering in other formats. Our paid search marketing guide goes into the mechanics of running these campaigns across Google and Bing in more depth.

Shopping/product advertising where relevant

Shopping campaigns pull directly from a product data feed to display images, prices and titles within search results and dedicated shopping tabs. They're essential for ecommerce and retail businesses because they let a potential customer compare products visually before ever clicking through, and they often achieve a lower cost per click than equivalent text ads for the same search term. Service-based B2B businesses without a product catalogue generally have limited use for this format.

Local search advertising

Local search advertising narrows targeting to a specific geographic radius or set of locations, often combined with location extensions, call extensions and Google Business Profile data to make ads more relevant to nearby searchers. This is particularly valuable for businesses with a physical premises, defined service area, or a customer base concentrated in a specific region, since it avoids paying for clicks from people outside a realistic catchment.

Search remarketing and audience strategies

Remarketing lists for search ads (RLSAs) allow advertisers to bid more competitively, or bid at all on otherwise broad terms, when the searcher has previously visited their website. Because these audiences already have some familiarity with the business, conversion rates are typically higher, which justifies a stronger bid. Audience layering more broadly, combining keyword intent with demographic, in-market or customer match data, is now a standard part of most well-run SEM accounts rather than an advanced add-on.

Microsoft/Bing paid search

Microsoft Advertising runs paid search across Bing, Yahoo and partner networks including some inventory within Windows and Microsoft 365 products. Audiences tend to skew towards an older demographic and, for some B2B sectors, higher average household income, and competition is generally lower than on Google, which can mean a lower cost per click for comparable keywords. It's rarely a replacement for Google Ads but is frequently used as a complementary channel once the primary platform is performing well.

Organic search and where SEO fits into the SEM terminology debate

Because SEM originally covered organic visibility as well as paid, some agencies and older resources still describe SEO as a "type" of search engine marketing. In current mainstream usage, SEO and SEM are presented as parallel, complementary channels rather than one sitting inside the other. It's worth clarifying which definition a supplier uses, particularly when a proposal bundles "SEM services" that might, in fact, mean organic work, paid work, or both.

AI-powered search experiences and search marketing

AI Overviews and other AI-generated summaries now appear above traditional organic results for a growing range of queries, changing how users interact with a results page before they even reach paid ads. Paid ads currently continue to display separately from these AI-generated summaries, but the overall page layout and user behaviour around it are shifting, which is worth monitoring as part of a wider SEM strategy rather than treating paid and AI-influenced organic behaviour as unrelated.

How AI has changed campaign creation, targeting and optimisation

Machine learning now underpins most modern bidding strategies, adjusting bids in real time based on the likelihood of conversion far faster than manual management could achieve. AI tools also assist with generating ad copy variations, identifying new keyword opportunities and predicting which audience segments are likely to convert. This automation reduces manual workload but increases the importance of clean conversion data and clear commercial goals, since AI systems optimise towards whatever signal they're given, accurately or not. A fuller treatment of this shift sits in our guide to how AI has changed search engine marketing.

Which type of SEM should a business use?

The right mix of formats depends on business model, sales cycle and geography rather than a fixed formula. The table below offers a starting point, but most established SEM programmes combine two or more formats rather than relying on a single one.

Typical SEM format priorities by business type
Business type	Likely priority formats
Ecommerce/retail	Shopping, standard search, remarketing
Local trade or service business	Local search advertising, standard search
B2B professional services	Standard search, remarketing, Bing paid search
Multi-location B2B	Local search advertising by region, remarketing

Frequently asked questions

What's the difference between SEM and PPC?+

PPC describes the pricing model, paying per click, that underpins most SEM formats, while SEM specifically refers to search advertising. All SEM tends to be PPC, but PPC also covers social and display advertising outside of search engines.

Do small businesses need shopping campaigns?+

Only businesses selling physical products through an online store typically benefit from shopping campaigns, since they rely on a product feed. Service-based businesses generally get more value from standard search and local advertising formats.

Is Bing paid search worth running alongside Google Ads?+

For many businesses, yes, since Bing often offers a lower cost per click and reaches an audience with some demographic differences from Google. It's usually best introduced once Google Ads campaigns are already performing well, as a complementary rather than primary channel.

What is a search remarketing list?+

A search remarketing list (RLSA) is a group of people who have previously visited a website, allowing advertisers to bid more aggressively on search terms when that person searches again. It's a way of prioritising budget towards people already familiar with the business.

Does AI decide which type of SEM a business should use?+

No, AI tools can help optimise bidding and targeting within a chosen format, but selecting which formats suit a business model still requires human judgement about goals, budget and customer behaviour.

Should SEO be included when planning SEM formats?+

SEO is generally planned alongside SEM rather than as one of its types, since the two use different mechanics and timelines. Many businesses coordinate keyword and conversion data between the two to strengthen both.

How many SEM formats should a business run at once?+

There's no fixed number; it depends on budget and business model. Most businesses start with one core format, usually standard search, and add others such as remarketing or shopping once there's enough conversion data to justify expansion.

Conclusion

Search engine marketing today spans several distinct formats, standard paid search, shopping, local advertising, remarketing and Bing paid search, each suited to different business models and stages of the buying journey. AI has changed how each is targeted and optimised, but the underlying decision about which formats to prioritise still depends on understanding your customers, sales cycle and catchment area. For the fundamentals of how each format actually works mechanically, see our what is search engine marketing pillar guide.

If you're unsure which combination of SEM formats would suit your business, our PPC and paid search team can help map out a strategy based on your goals and budget. Get in touch to discuss your options.

Glossary of Terms

SEM: Search engine marketing; paid advertising activity across search engines.
Shopping campaign: A Google Ads format displaying product images, price and title from a data feed.
RLSA: Remarketing lists for search ads; targeting search ads at previous website visitors.
Local search advertising: Paid search targeting narrowed to a defined geographic area or radius.
Microsoft Advertising: The advertising platform for Bing, Yahoo and related Microsoft properties.
Ad Rank: The combined score of bid and ad quality that determines position and cost per click.
Automated bidding: Machine-learning-driven bid adjustment based on real-time conversion likelihood.
AI Overviews: AI-generated summaries Google displays above some organic search results.
Product feed: A structured file of product data used to power shopping campaigns.
Audience layering: Combining keyword intent with demographic or behavioural targeting data.

Types of Search Engine Marketing: An Updated Guide for the AI Era