SEM and SEO are hot topics among today’s marketers whoever owns a website. I’ve always wanted to dig into SEM and SEO since I worked at my first job in Ogilvy China. I used to purchase keywords for Motorola China on the top Chinese search engine, Baidu.com. It worked almost the same as Google. I know how critical they are in bringing traffic to your sites and how powerful they can be in driving sales (usually also called conversion).
What are SEM, SEO and Adwords?
SEM is short for Search Engine Marketing which means you advertise on search engines like Google, Bing and Yahoo by purchasing keywords and bidding for your ad display spots. You can see from the picture below that when you search the phrase “light boxes”, the top three links on the search page are advertisements from different companies. There are 8 more ads on the right hand side of the page as well. The higher the position is, the more the cost is. Advertisers can choose to bid for different locations with different budget. Currently I prefer to bid for the 3rd spot and lower as they are cheaper.

SEO is short for Search Engine Optimization which means you optimize your site’s information structure and improve your site’s credibility and performance (usually with good amount of traffic) so that search engines will acknowledge your site with good quality and recognition. Then when people search the phrase “light boxes”, your site will be more likely to show up on a higher spot in the natural search section (which is below the top 3 ads). The higher quality your site has, the higher spot it will get.
Thus to be simple, with SEM you have to pay search engines while with SEO you don’t.
What is Adwords then?
Adwords is Google’s SEM service platform. Once you sign in Adwords, you can spend money to advertise your website on Google, Google’s search network and Google’s content network. The basic work you need to do is to prepare a list of keywords that are mostly related to your business. For example, the DSA Phototech company is a manufacturer of light boxes, so its keywords are mostly related to light boxes, such as LED light boxes, slim light boxes and customized light boxes, etc. Then you need to set a bid price for these keywords. But more importantly, you need to know what your goals are with SEM. Do you want customers to just simply view your site or fill in a survey form or purchase a product? After clarifying your goal, you need to embed Adwords codes into your goal fulfillment page to enable the conversion tracking. For example, if you want customer to purchase products, you need to embed the codes into the order confirmation page. So when a customer clicks your ad on Google, comes to your site and fulfill a transaction, this transaction will be recorded by Adwords.
The three simple terms can easily drive people nuts coz they are not so easy as they sound like and they require large amount of expertise in strategy planning and technical support. We will explore more later with vivid examples.





