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Search engines can generate a lot of traffic for your business — if you know how to use them. Today's search engine results pages (SERPs) have many moving parts, from AI Overviews to sponsored results, and different techniques help you rank in specific areas. Search engine optimization (SEO) and search engine marketing (SEM) are your two must-know strategies.
SEO focuses on ranking in organic search results, while SEM focuses on generating traffic from paid ads. Understanding SEO vs. SEM — how they work, when to use them, and where they fall short — can help you stand out from competitors on a search engine results page. But first, you need to understand each approach individually.
What Is Search Engine Optimization (SEO)?
SEO is the process of improving a website's ranking in organic search results. Organic results are the SERP listings that aren't paid ads or featured snippets. They appear because they stand out as relevant and trustworthy to search engine algorithms. SEO professionals typically focus on Google, which processes nearly 90% of searches worldwide.
The complete process includes three elements:
- On-page SEO: Optimizing your content with keywords that reflect your audience's search behaviors
- Off-page SEO: Attracting inbound links and earning brand mentions on other websites
- Technical SEO: Refining your website's structure to improve usability for readers and search engine algorithms
The primary goal of SEO is to achieve long-term growth through organic traffic.
What Is Search Engine Marketing (SEM)?
SEM is a more comprehensive strategy than SEO. It encompasses all tactics for getting traffic through the SERP, which means it technically includes SEO. Unofficially, however, marketers tend to use the term to refer to paid search.
Paid search refers to the sponsored results that appear on a search engine results page. These results are pay-per-click (PPC) ads, meaning the sponsoring business pays a certain amount for each interaction.
Google Ads are the most recognizable type of PPC campaigns. They are the driving force of SEM, primarily because they can get results quickly and cost-effectively.
SEO vs. SEM: The Core Differences
Understanding SEO vs. SEM marketing can be challenging, as both draw traffic from the SERP. A core distinction is that SEM is part of digital marketing, not content marketing. SEO is a primary aspect of content marketing because the material itself gets results.
Traffic Source: Organic vs. Paid
When you start looking at SEO vs. SEM, the first difference you see is how they affect the SERP. SEO affects your ranking in organic search — non-sponsored listings that you earn instead of buying.
The higher you rank on the SERP, the more traffic you stand to earn. Each step up the first page increases your click-through rate (CTR) by 2.8%, with greater differences as you rise through the ranks.
Spending time on organic rank is essential, but ads can get to the the top of the page faster. That's where SEM comes in. SEM generates paid traffic, which is not dependent on your organic search engine ranking.
Cost Structure: Upfront Investment vs. Ongoing Spend
SEO and SEM both require a resource investment, but the time frames differ. SEM requires you to continue paying as long as you want your ads to run. Don't be discouraged if you don't get dozens of clicks at first; a classic marketing rule says it takes seven touchpoints before someone takes action.
It's better to plan on paid ads as a long-term budget item. If you're unsure how much to spend, Google will give you a recommended daily budget as a starting point. You can always adjust it based on your needs.
With SEO, you have an upfront cost that continues to pay off. You invest initially in keyword research, strategy, content planning, and content production, which may cost more than your initial ad spend.
However, once you've published your content, it continues to generate traffic. There's no need to pay more until you need more content.
Timeline to Results: Long-Term vs. Immediate
SEM's pay-as-you-go model isn't necessarily a downside. It also means that you can see results much sooner with SEM than you typically do with SEO. Your Google Ad can start running within a day of creating your ad copy, and you can get clicks as soon as your ad is live. Conversions, of course, depend on the relevance of your ad and the quality of your copy.
With SEO, most companies don't start seeing results for three to six months after posting optimized content. Fortunately, those results don't have an end date. You can keep seeing results of an SEO strategy years after the fact.
Sustainability: Compounding Value vs. Pay-to-Play
SEO may take longer than SEM to show results, but that success feeds on itself. More traffic to your website means more opportunities for social shares, blog comments, brand mentions, and other off-site activities that strengthen your SEO. That value builds on itself, the same way interest in your bank account does.
SEM is only as sustainable as your budget, but sometimes, that's all you need. Your ads can evolve in line with your goals, providing flexibility in your digital marketing strategy. Both systems are beneficial, which is why top marketers invest in both.
Why High-Performing Brands Invest in SEO
Less experienced marketers assume that, because SEM costs money and gets results faster, it must be the top approach for the biggest brands. While websites like Amazon and Apple do use paid ads to reach their audiences, they also incorporate SEO.
Big-brand marketers understand that SEO is a more cost-effective approach over time. A modest initial investment can attract compounding traffic, as each influx of visitors boosts the site's authority and trust levels. That's why so many popular websites use "evergreen" content, which remains relevant over time and continues to drive results.
Even Amazon uses SEO in combination with SEM. Platform resources help sellers learn how to use SEO to improve their products' organic rankings. Amazon also uses SEO to attract high-interest audiences for its own listed products, including those with niche followings.
Challenges and Drawbacks of SEO
SEO is a powerhouse for those willing to put in the work, but it's not perfect. It can be slow to see results, posing a financial challenge for some newer or smaller brands.
Unfortunately, SEO is initially resource-intensive, which can exacerbate that short-term challenge. Brands that want their SEO to succeed must invest in content creation, technical support, and off-page link building. Each task requires time, which translates to labor cost. Businesses can reduce this expense by outsourcing, but the expense still exists.
SEM's Value for Growth and Visibility
SEO makes you wait for algorithms to notice your efforts. SEM has an immediate effect — because that's what you pay for.
For example, Google Ads operates on an auction system. You bid the maximum amount you're willing to pay per click. Google considers each advertiser's bid and the quality of their ad copy to choose which ads run for a particular search. That means instant visibility if you win.
That instant feedback makes SEM extremely useful for testing new messages and offers. If you're unsure whether a particular promotion or angle will resonate with your audience, you can incorporate it into a Google Ad and quickly see if it's effective.
Paid ads also let you target your campaigns to a specific audience. You tell Google what keywords you want to rank for and what demographics or geographic areas you want to reach. Google only considers your ads in those markets, so you don't waste time or money targeting people who won't be interested.
SEM Pitfalls To Watch Out For
SEM has advantages over SEO, but it can be more costly. While SEO content can keep attracting traffic long after you've paid for it, SEM ads stop running as soon as you stop paying for them. If you want to keep using Google Ads as a strategy, you'll need a continuous budget.
That budget can be higher for more competitive keywords and industries. The average cost-per-click (CPC) is $5.26, according to WordStream data, but can rise to $7.85 or higher in certain highly competitive subject areas. On the other hand, less competitive keywords can cost under $2.50.
When To Use SEO vs. SEM
Now that we've examined the pros and cons of each option, we can address the core question: SEO vs. SEM, which is better?
Overall, SEO is best for:
- Established brands: Businesses with strong brand recognition often have a high initial ranking and can afford to wait for their efforts to pay off.
- Authority building: Any brand can use SEO to enhance its reputation and showcase its subject matter expertise. Thought leadership content, relevant keyword integration, and quality backlinks are essential.
- Content-dependent industries: SEO is important if your business needs to educate and inform potential customers. Examples include healthcare, law, personal finance, e-learning, and software-as-a-service (SaaS).
Businesses outside of these categories can still benefit from SEO, but may need to invest more in paid ads.
SEM is critical for:
- New product or business launches: SEM generates short-term buzz better than SEO, helping to jump-start your marketing and build brand awareness.
- Time-sensitive promotions: Optimized content may not reach your audiences in time if your sale or offering has an expiration date.
- Competitive and fast-paced niches: When a race to the top is underway, organic search struggles to keep up. SEM allows you to reach your target audience before your competitors do.
Knowing when to use SEO vs. SEM helps you get more out of your digital marketing strategy, especially if you can use them both together.
Combining SEO and SEM for Maximum Impact
SEO and SEM are complementary marketing strategies with similar goals. Each can help you generate more clicks, drive more traffic, and enhance your conversion rate. When you leverage their strengths together, each has even more potential.
Use SEM for Immediate Wins While SEO Builds
If one strategy gets results immediately while another takes longer, why not combine them? Design an SEM campaign that complements your SEO efforts and helps build momentum.
You might:
- Highlight a recently optimized page
- Invite subscriptions to your blog or email newsletter
- Run a promotion that showcases your website's value
You can even run multiple SEM campaigns targeting various site elements or audience segments. Every boost to authority helps your SEO.
Share Keyword Intelligence Across Both
The right keywords are crucial to success in SEM and SEO. Use your time wisely by using the same keyword research insights for both approaches.
Start with SEO tools like Google Keyword Planner, Ahrefs, and Answer the Public to brainstorm keywords. Look for keyword difficulty statistics, including search volume, competitiveness, and CPC. Aim to spread your difficult keywords across both SEO and SEM.
Also, think about user intent. Keywords that indicate buyer intent, such as "near me" or "on sale" searches, often work well in SEM, as the time to result is faster. More evergreen and informational keywords are ideal for SEO.
Retarget SEO Visitors With Paid Ads
SEM may work faster, but some users will see your SEO content first. Not all of them will convert, and that's where search retargeting comes in.
Retargeting sends paid ads to individuals who have visited your site in the past based on their browsing behavior. For example, if a human resources manager searched for "payroll management," you can retarget them to your SaaS company with an ad for a free trial.
This system is efficient, effective, and doable even for less experienced marketers. The key is to use a system such as Google Ads, which can target people who search for specific terms.
Balance Budgets To Match Business Goals
In a perfect world, you could go all-in on SEO and SEM for every keyword and every audience — but the reality is that every business has a budget.
Consider what you want to achieve through SEO and SEM. If you need to boost sales quickly, you may want to allocate more resources to SEM. If you're focusing on building brand awareness, SEO might be the priority.
It's also possible to invest evenly in both. Remember, you can always change up your strategy.
Building a Cohesive Search Strategy
Ultimately, the question isn't whether to use SEO or SEM, but rather how to utilize both as complementary techniques. Success happens when you combine the best of both, integrating them into your marketing mix to help you reach your goals.
Compose.ly is here to help. We offer professional SEO support, from keyword analysis to SEO briefs and original content creation. Whether you need an end-to-end solution or just a boost, we have the up-to-date SEO knowledge you need to stay ahead of the game.
Explore our SEO services today to learn more.
