SEO vs. SEM: What’s the Difference and Why It Matters

In terms of digital marketing, two terms must be discussed: search engine optimisation (SEO) and search engine marketing (SEM). Both are important for driving website traffic and improving online visibility. 

However, they both have differences between them, and they include: 

• The way of implementation
• Working principles
• Key components
• Costs
• Sustainability
• Timeline
• SERP placement, and more. 

Understanding the differences between these two terms will help you to make a strategic marketing plan for your business. In this comparison guide, we will compare both terms, and you will know how to implement them to grow your online business. 

Understanding SEO

Marketers mainly target Google traffic. It is because, as of November 2024, 90% of traffic comes through the Google search engine worldwide. In Australia, Google’s search engine market share is 93.13%.

It is crucial to understand what SEO is and how it works to rank your site on Google’s SERP. 

What Is SEO?

Search engine optimisation (SEO) is the set of practices to optimise a website for higher organic search ranking results. 

• Organic Search Result: Organic search results mean an unpaid listing of your website on search engines’ result pages. This happens when your web content is relevant, usable, and authentic to the search queries according to the search engine’s algorithm. 

Figure: How organic search result looks like in SERP

SEO efforts aim to improve the relevance, usability and authority of your content. When successful, organic traffic comes to your website, and your business grows. 

Steps of SEO- How It Works

SEO works by combining different search engine algorithms. The steps for search algorithms are as follows. 

1. Keyword Research

Keyword research is the first and foremost aspect of SEO. It refers to the terms and phrases that people search for in the search engine. 

For example, someone needs to find the best SEO service providers in Brisbane. So, he will search for the service in something like “best SEO service provider in Brisbane.” 

This whole term/phrase is the keyword here. 

To make sure your content ranks, you must research the keywords that are relevant to your products/services. 

You can use different keyword research tools, such as:

• Semrus Keyword Magic Tool
• Ahrefs’ Keyword Explorer
• Google Keyword Planner
• Ubersuggest
• Keyword Everywhere, etc. 

2. On-Page SEO

On-page SEO is the practice of optimising your content for the search engine. Here’s how you can optimise your website content with the best on-page SEO practices. 

1. Create Helpful Content

The very first responsibility is to create helpful content for the users. 

Without creating helpful content, there are no benefits of making the content optimised for the search engine. 

Your content may rank at the first. But the search engine will derank your content at a time. Also, the search engine can penalise your entire website if the content lacks quality. 

To create high-quality and authoritative content, you must follow the E-E-A-T standard. E-E-A-T refers:

• E stands for Experience. When you write something about a service, you must show that you have first-hand experience with this particular topic. 
• The second E is for Expertise. With experience, you must show your relevant expertise on the topic. 
• A stands for Authoritativeness. Authoritativeness refers to the reputation of your website as a leading voice on the topic. For example, WebMD is a world-recognised medical site. Backlinking/referencing something about health information or data from here will give anyone a higher value than any unfamiliar health website. 

So, the higher your website’s authorativeness score, the higher people will value your content. It takes time to create higher authoritativeness by:

• Creating high-value content, getting positive mentions, links, or citations from other reputable websites. 
• Getting awards, recognitions, or widespread acknowledgment in the field.
• High domain authority of the website hosting the content.
• T refers to Trustworthiness. It means your website must be reliable and integrated with the content you are creating on your website. 

Your site’s users need to feel safe and confident when engaging with the information. This is particularly critical for sensitive topics like health, finance, or safety. For instance, e-commerce sites must have secure payment gateways to establish trust.

The indications of trustworthiness include:

• Transparent information about the content creator or business (e.g., “About Us” pages).
• Clear privacy policies and secure website features (e.g., HTTPS encryption).
• Accurate, unbiased, and properly cited information.

2. Other On-Page SEO Checklist

Aside from creating high-quality content, here are the technical things you should ensure for proper on-page SEO optimisation. 

• Use the most relevant keywords naturally in the content. 
• Write a descriptive meta-description for the content. This should not exceed 160 characters. It summarises the content. 
• Write a title under 60 characters. The title must be hooking. Make sure the title aligns with the search intent. Also, make sure it contains the primary keyword. Use a title tag or H1 for the title. 
• Use relevant internal links of your website in the relevant sections with proper anchor tags. 
• Use relevant and authoritative external links from reputable sites. 
• Use proper H2 for the main sections. Use H3 under H2 and H4 under H3 and so on. 
• Ensure your content efficiently and effectively answers the content question’s intent. 
• Don’t use the title tag or H1 more than once in content. 

3. Off-Page SEO

Off-page SEO is the practice of SEO outside of your content or the website. Off-page SEO is one of the biggest Google search ranking factors. 

The main components of off-page SEO are as follows. 

1. Creating Quality Backlinks

Backlinks are links from other websites to your site. Search engines see backlinks as “votes of confidence.” Getting backlinks from reputable sites indicates that your site is trustworthy and authoritative for the topic that is being discussed. 

The more high-quality backlinks you have, the more credible your site appears.

Strategies for creating backlinks that you can follow are as follows:

• Guest Blogging: Contribute articles to other websites and include a link to your site.
• Broken Link Building: Find broken links on other websites, suggest your content as a replacement, and request a backlink.
• Content Marketing: Publish high-quality, shareable content like infographics, videos, or guides that naturally attract links.
• Outreach: Directly reach out to webmasters or influencers, asking for backlinks to relevant content.

2. Social Media Signals

• Social engagement (likes, shares, comments) indirectly increases content visibility.
• Share content regularly, engage followers, and collaborate with influencers.

3. Content Syndication

• It refers to republishing content on third-party platforms to expand reach. It increases traffic and backlinks while linking back to the original content.
• Use platforms like Medium and LinkedIn, ensure original content is indexed first, and use canonical tags.

4. Forum Participation

• Engage in niche forums like Reddit or Quora. It drives traffic and builds credibility through genuine advice and links.
• Provide value in discussions, avoid spam, and build authority.

5. Online Reviews and Ratings

• Customer reviews on platforms like Google or Yelp increase trust and visibility.
• Request reviews, respond to feedback, and address complaints constructively.

4. Technical SEO

Technical SEO means making your website technically optimised so that search engines can easily:

• Find your website and content
• Crawl your website and 
• Index your website and pages. 

Don’t block search engines from crawling your website. If search engines can’t crawl your website, they can’t understand the context of your website. As a result, your site won’t be ranked. 

Optimising technical SEO includes:

• Making Your Site Mobile-Friendly

More than 96% of global internet users use mobile devices to access the internet. You must ensure your website works on all mobile devices without any flaws. 

Aside from this, here are some more steps that technical SEO works through. 

• Optimise site speed by compressing images, minimising code, and using fast hosting. Ensure mobile optimisation with responsive design.
• Create a clear site structure with internal linking. 
• Submit an updated XML sitemap and use robots.txt files to manage crawlable pages.
• Use canonical tags to avoid duplicate content penalties. Consolidate duplicate pages with 301 redirects.
• Use HTTPS for secure browsing. Fix broken links to enhance user experience and crawling efficiency.
• Use clean, descriptive URLs reflecting page content and avoid complex URLs with unnecessary parameters.
• Monitor and fix 404 errors and other server issues using tools like Google Search Console.
• Maintain logical navigation, hierarchical structure, and limit page depth (ideally within 3 clicks from the homepage).
• Optimise metrics like
  • Largest Contentful Paint (LCP), 
  • First Input Delay (FID), and 
  • Cumulative Layout Shift (CLS) to meet Page Experience standards.

Key Components of SEO

You can use SEO tools like Google Analytics, Ahrefs, and Semrush. They provide insights and suggestions to refine your SEO strategies. 

An SEO audit is another core component that needs to be implemented. This means regularly assessing your website to identify the areas for further improvement. 

Understanding Search Engine Marketing (SEM)

Search engine marketing is a broader term that includes SEO and paid marketing for search engines. So, you can divide SEM into two major categories. 

One is SEO, which we have already discussed- the organic way of marketing. While SEO is only about organic marketing, SEM includes paid marketing, which is called PPC (Pay-Per-Click) advertising. 

• What is PPC?

PPC refers to pay-per-click. This means if someone clicks on your ad, you have to pay for each click. PPC marketing is done to improve the visibility of your content. 

The content can include relevant written copies and visuals, such as images targeting specific keywords. 

Since SEM includes both SEO and paid ads, you can target SEO, PPC, or both for SEM. However, our topic in this part is only paid ads. 

Figure: How paid search looks like in SERP

Paid search campaigns for SEM allow businesses to bid for ad placements based on targeted keywords. Google Ads is the most popular platform for SEM campaigns. 

When you pay for content marketing, your paid content will ranked labelled “Sponsored.”

How SEM Strategy Works

Since SEM also includes paid advertising, the paid campaigns work on the bidding. 

• Bidding

You can use any paid ads, including Google Ads; you have to bid for your ad campaigns. The bidding will be done for specific keywords. 

If you want Google SERP to show your content at the top search results, you have to bid with the highest amount. 

If you set your bidding amount for a particular keyword, you have to pay this amount when someone clicks on your ad. This cost is called cost per click (CPC). 

For example, check the following figure. 

The CPC for the keyword “mens leather boot” is $0.44. Therefore, when you set your bidding amount for this particular keyword, you must set the CPC rate higher than this rate so that your ad remains at the top of the paid SERP.

• Quality Score

The quality score of your content is measured by Google based on 3 factors. 

• The first is the expected click-through rate (CTR), which is the score of the possibility of users clicking on your ads when they are shown. 
• The second is ad relevance, which means how closely your ad matches the intent of the keyword users search for. 
• And the third one is the landing page experience. It means how rich the user experience of your website landing page is to the users. 

The higher the quality score, the higher the chance your ads rank. 

• Quality Ad Copy and Extensions

Aside from paid ads, writing compelling and hooking ad copies impacts the SEM. Also, adding extensions like phone numbers, links, or locations of the business increases the ads’ credibility. 

Key Components of SEM

There are some key components an SEM marketer should keep in mind. 

• Keyword Targeting: Selecting terms to trigger ad displays.
• Landing Pages: Dedicated pages designed for conversions.
• Remarketing: Re-engaging users who’ve previously visited your site.
• SEM Tools: Platforms like Google Ads and Bing Ads help manage and optimise campaigns.

Key Differences Between SEO Vs. SEM

By understanding both SEO and SEM, we see the following differences when comparing SEM vs. SEM. 

Cost

SEO offers free organic traffic. However, achieving those rankings often involves an initial investment in tools, resources, and content creation. Tools like Ahrefs and SEMrush help identify opportunities. But to get the advanced features from such SEO tools, you have to pay a certain amount of money. 

According to Backlinko data, the average monthly SEO cost is around $500. Businesses generally spend between $100 to $5000/month. The content production costs can vary. 

On the other hand, SEM involves continuous costs as advertisers bid for placements. Cost-per-click (CPC) is determined by competition and bid strategy. So, this can be expensive for high-demand keywords such as “insurance,” “Best credit card for rewards,” etc.

However, PPC can cost you anything from $100 to $10000 per month. 

Timeline

SEO is a marathon, not a sprint. It requires patience, as results often take months to appear. For instance, a Brisbane-based local business optimising for “best plumbers in Brisbane” may take 6–12 months to see substantial results. 

SEM, on the other hand, delivers instant visibility. Once campaigns are live, ads appear at the top of search engine result pages (SERPs). This can drive immediate traffic to your business. 

Sustainability

One of SEO’s biggest advantages is sustainability. Once your site ranks well, it attracts traffic without ongoing costs. 

Conversely, PPC SEM only works as long as you’re willing to pay. When ad budgets run out, or you stop paid campaigns, your ad content will stop ranking. For seasonal promotions or short-term goals, SEM is ideal. However, for long-term growth, SEO is more reliable.

SERP Placement

SEO targets organic results that appear below the paid ads. Users who value organic and credible information consider these listings more trustworthy. 

SEM, meanwhile, occupies the premium real estate at the top of the SERP. This is marked as “Sponsored.” While SEM provides prominent visibility, it lacks the long-term credibility associated with SEO.

Click-Through Rates

Click-through rates (CTR) tend to be higher for organic results, especially for top-ranking pages. Users trust these listings as unbiased. 

However, CTR for SEM campaigns depends on ad quality, relevance, and targeting. A well-optimised ad with engaging copy and extensions can achieve high CTRs. This particularly happens for time-sensitive offers like “50% off garden furniture this January.”

Local SEO vs. SEM- A Deep Dive

Here is a quick overview of local SEO and local SEM. 

What Is Local SEO?

Local SEO optimises your website for location-specific searches, ensuring visibility in local map packs and organic results. This is essential for small businesses targeting nearby customers.

To attract local customers in particular areas, optimising your site for local SEO increases your online presence. Local SEO includes listing your business name, address, and phone number in local directories. 

• The best option for local directories is Google My Business. Aside from this, you can use Yelp or Yellow Pages. 
• You must be consistent in NAP (Name, Address, Phone number) information across all listings. This will help search engines validate your credibility.

What Is Local SEM?

Local SEM focuses on paid ads targeting specific geographic areas. Features like call-only ads or location-based targeting make it a go-to for immediate results.

Use Cases of Both Strategies in Australia

• Local SEO: A Gold Coast café ranks organically for “best coffee near me” by optimising its Google My Business profile and collecting customer reviews.
• Local SEM: The same café uses Google Ads to promote a breakfast discount, targeting users within a 5-kilometre radius.

Why It Matters to Choose the Right Approach for Australian Businesses

Since digital advertising requires planned strategies, you need to choose the right approach to market your business to rank top for online presence. 

When to Prioritise SEO

You should consider SEO for the following aspects. 

• Long-term growth is the primary objective of your business
• The budget is limited for long-term ongoing advertising spend.
• When building brand authority and trust is essential.
• Your business operates in a less competitive niche where organic rankings can be achieved faster.

When to Prioritise SEM

When you are in the following situations, you can opt for SEM. 

• Your business needs instant results.
• You’re running short-term promotions or seasonal campaigns.
• You want to target a specific audience segment with precision.
• You operate in a highly competitive industry where organic rankings are difficult to achieve quickly.

Combining SEO and SEM for a Winning Strategy

Though considering one strategy is suitable for particular digital marketing needs, combining SEO and SEM can bring ultimate results for your business. 

Why Use Both?

Combining SEO and SEM allows businesses to capitalise on the strengths of both strategies. While SEM delivers immediate results, SEO builds a foundation for sustained traffic over time.

Practical Applications

• Keyword Research: Insights from SEM campaigns can guide SEO strategies. For example, if an SEM campaign reveals high-performing keywords, you can optimise your website content around those terms with organic SEO. 
• Google Analytics: Use the platform to compare organic traffic vs. paid traffic performance.
• Seasonal Campaigns: Use SEM for holiday promotions while maintaining an ongoing SEO strategy.

Final Thoughts

SEO and SEM are vital components of a thorough digital marketing strategy. For Australian businesses, the choice depends on goals, budgets, and timelines. SEM provides instant visibility, while SEO ensures long-term growth and credibility. Combining both is often the best approach for making the ultimate online presence and achieving targeted results.

If you’re a Brisbane business owner seeking local or nationwide reach, SEO 4Business Group is here to help. We specialise in SEO and SEM services across Brisbane and the suburbs, ensuring top SERP rankings. Contact us today to connect with your target audience and heighten your digital marketing success.