The main difference between Search Engine Optimization (SEO) and Pay Per Click (PPC) is that traffic coming from SEO (organic) is free while traffic generated from PPC is not free (as the name implies you have to pay a cost per click). This is also the reason why you may sometimes see the terms organic search engine listings and paid search engine listings (or Paid Search Advertising ? PSA).
Both SEO and PPC are part of Search Engine Marketing (SEM) which is one of the tools you can use as part of your overall Internet Marketing campaign.
I will try to explain the other major differences between the two by using the following parameters: position in search results, cost, traffic potential, conversion and ease of use.
Post Merge: June 28, 2013, 10:50:31 AM
The difference between SEO and SEM is simply that Search Engine Optimization is part of Search engine marketing or Search marketing as it is widely known. Both processes aim in increasing visibility in search engines. SEO is about optimizing the web property to get better rankings in the search results while SEM goes beyond SEO. It involves other methods as well which can get you more search engine visitors like PPC advertising.
Search Engine Optimization (SEO)
I have explained before what is SEO and why is it important and I have also outlined what in my opinion are the most important SEO tips. For the purpose of doing a comparison between SEO and SEM I will re-state the definition of SEO so that it is clear for everybody what the difference between the two is.
What is SEO?
SEO is the process of optimizing your web site for the purpose of getting free traffic from search engines. An optimized web site is more easily understood by Search engine crawlers, so there are more chances of ranking higher in SERPS.
On-Site and Off-site SEO
There are 2 main pillars of SEO, what is called on-site SEO and off-site SEO. On-Site SEO are rules you can apply on your web site or blog so that it?s more search engine friendly. For example you need to use proper titles, good descriptions, well formatted URLs, correct use of H1, H2 and images and many more. You can read my version of the 15 on-site seo tips for beginners to get a good idea of how you can optimize your web site for search engines.
Off-site SEO refers to the process of getting votes from other web sites for the purpose of increasing your web site?s trust in the eyes of search engines. For beginners this may be confusing but try to think about it like a ranking system where the web site who has the most votes ranks higher. Votes in our case are links coming from other web sites to your site. That is also the reason why off-site SEO is referring to as link building.
To avoid any misunderstandings it?s not only a matter of how many links you have pointing to your website but also from where these links are coming and a number of other factors I am not going to cover now.
Search Engine Marketing (SEM)
Search Engine Marketing is over and above SEO but it?s only a subset of your overall Internet Marketing Strategy. The diagram below shows the relationship between Internet Marketing, SEM and SEO. As you can see there are many more ways to increase your web site?s traffic besides SEM and SEO.
What is SEM?
So, SEM is the marketing process with a goal of getting more visibility in search engines either by getting more free traffic (SEO) or paid traffic (Paid search advertising).
Through paid search advertising you essentially buy advertising space in the search engine results. So instead of trying to rank higher and get free traffic you pay to appear in front of the searches.
The most well-known advertising agency for PSA is Google Adwords. Through Google adwords you can get your ads appear in the Google search results and you pay only for the clicks on your ads. This is also the reason why the whole process is called Pay-per-click or PPC. Bing and Yahoo have a similar system but it not so successful and widely known as Adwords.
Importance of SEM Traffic
SEM traffic is considered the most important source of Internet traffic because it is targeted. It is widely accepted that people use the search engines to find a solution to a problem, an answer to their question or to learn how to do something. So when searches click on a web site from the search results or click on an ad, they are more likely to convert. The relevancy of the displayed web sites and ads makes SEM traffic more valuable than any of the other sources. Facebook and twitter are trying to optimize their advertising platforms to utilize targeted traffic but still traffic coming directly from search engines has a better ROI.