SEM, PPC, SEO- What’s the Difference?

SEM, SEO, PPC, XYZ, PDQ- what do all these acronyms mean, and can they help your company?

SEM = Search Engine Marketing

When people say “SEM,” they can refer to two different things. Sometimes, they mean any marketing that occurs through a search engine- whether through paid search (PPC) or natural search (SEO). Other times, people use “SEM” as a synonym for PPC advertising.

PPC = Pay Per Click (Marketing)

This marketing channel uses a platform such as Google’s AdWords or Bing’s AdCenter (and sometimes PPC platforms on social networks- but that’s a different blog post) to appear in the ads at the top of the search engine results page. When I say “top,” I don’t mean that you can pay a search engine to be #1 in the search result- but appear in the paid search section of a search result, usually distinguished by the explicit statement that this link is an ad. To be even more clear, some paid search ads also appear to the right of the search engine listings.

How do you appear in PPC ads?

To oversimplify:

1. You choose a series of keywords for which you’d like a link to appear on your website.
2. You write the ad to entice people to click on this link.
3. You set a bidding price on how much you’d be willing to spend on a click.
4. The search engine then uses this information to decide where your ad will appear (which place? on the top or right? even on which page of the search result).

Does anyone ever click on PPC ads?

Yes, many do. And no, it’s not just people who don’t understand the difference between PPC and SEO (Google is not making billions by taking advantage of ignorant search engine users—they’re making billions by taking advantage of uneducated business owners who bid way too much for these ads).

Still not convinced? Why not give it a try? You only pay Google if someone clicks on your ad. If you know that you’d want someone who entered that query into a search engine to visit your website, wouldn’t you be willing to pay for it? Suppose you can optimize your PPC campaign for even greater success (more clear keywords to show up for more queries, better and enticing ads to attract the right customer, and precise bidding to make sure you don’t spend too much for a lead). In that case, marketing your business online can be profitable.

SEO = Search Engine Optimization (Marketing)

This channel is also known as “natural search” or “organic search” because the website owner is not paying for placement—the search engine decides who gets served up in these results based on the merit of their website.

Many factors determine whether Google or the other search engines decide to serve a website in response to a searcher’s query.

SEO is also “free.” Why the quotes? Getting a website to grow in organic search can sometimes take significant money. Not only does your website need to be set up correctly so the search engines can read it, but you must also ensure you have content that answers people’s questions about your services. In addition to the expenses of a good web developer and a good copywriter, you’ll also need to encourage other websites to link to yours. That means you’ll need someone doing outreach. An SEO consultant can combine these services into one practice. You can always find a cheap SEO consultant, but I wouldn’t recommend that (cheap SEOs get their client’s websites banned from Google!).

SEO and PPC together forever = SEM

While these two marketing channels are very different, they work well together.

• When a search engine user sees a PPC ad and then an organic listing for the same website, they are likelier to click on the organic listing than the duplicate organic listing without a paid ad. Part of this is a credibility factor—it makes the business look more legit. Some of this is also simple repetition—I’ve heard of them before, so it must be a good place (even if they just heard about it at the top of the page).
• PPC is great at delivering results and data very quickly. SEO takes time to develop. If you are gathering data through PPC, you can learn where to put that effort into your SEO campaign and begin to get those same clicks for free.

Can a SEM Consultant Help Your Business?

• Do you have a marketing budget that is large enough? PPC can be expensive- especially if not managed well. Thankfully, some SEM consultants know how to manage PPC campaigns effectively. Unfortunately, they have to pay their mortgage and put dinner on their table every day- so you have to pay them for their services. Even if you don’t want to pay for the clicks, ensure you don’t cut corners when paying for your SEO services. The clicks from organic search might be free, but the people providing SEO consulting can’t live on clicks alone.
• Do people know your service or product exists? Search marketing responds to people already looking for what you have to offer. Search marketing might not work if you provide something new, unique, or niche.

If these are true, then an SEM consultant can help your business.