For businesses wanting to reach more customers online, search engine marketing (SEM) and pay-per-click (PPC) advertising are two popular options. Though they have some similarities, there are distinct differences between the two. Understanding when to use SEM vs PPC can help maximize your return on investment.

What is SEM?

Search engine marketing (SEM) is the process of gaining website traffic and visibility through both paid and unpaid search results. SEM includes:

Paid search ads through Google Ads and other platforms

Optimizing pages to rank higher in organic search results through SEO

SEM helps businesses get their website in front of people who are actively searching for their products or services in search engines like Google. The goal is to appear prominently in search results and drive relevant traffic to your website.

What is PPC?

Pay-per-click (PPC) advertising refers specifically to the paid search ads part of SEM. PPC involves bidding on ad placement in a search engine’s sponsored results. Businesses pay a cost-per-click fee every time someone clicks their ad.

Popular PPC platforms include Google Ads, Microsoft Advertising, Amazon Ads, and Facebook Ads. You create targeted text, display, shopping, and video ads and choose keywords related to your business. Your ads can appear on Google alongside organic results when people search those keywords.

Key Differences:

• SEM includes both paid and organic strategies while PPC involves only paid search advertising.
• In SEM, you need to optimize website content, technical elements and authority to rank higher in organic search. PPC relies solely on bidding for ad placement and keyword targeting.
• SEM aims to increase overall visibility and traffic from search. PPC is focused on generating direct clicks and conversions on ads.
• SEM has ongoing costs for content creation, link building, technical optimization, etc. In PPC, you only pay when people click your ads.
• SEM produces long term sustainable growth by building authority. PPC provides short term results and flexibility in budgeting.

In summary, SEM is a holistic approach encompassing both paid and organic search to increase relevance. PPC offers precise control over paid ad campaigns. Many businesses utilize both as complementary strategies to improve search visibility and traffic.