Search Engine Marketing, or SEM, is a form of Internet Marketing that seeks to promote websites by increasing their visibility in the Search Engine result pages (SERPs). According to the Search Engine Marketing Professionals Organization, SEM methods include: Search Engine Optimization (or SEO), paid placement, and paid inclusion. Other sources, including the New York Times, define SEM as the practice of buying paid search listings with the goal of obtaining better free search listings.
In 2006, North American advertisers spent US$9.4 billion on search engine marketing, a 62% increase over the prior year and a 750% increase over the 2002 year. The largest SEM vendors are Google AdWords, Yahoo! Search Marketing and Microsoft adCenter. As of 2006, SEM was growing much faster than traditional advertising
Paid search advertising hasn't been without controversy, and issues around how many search engines present advertising on their pages of search result sets have been the target of a series of studies and reports by Consumer Reports WebWatch, from Consumers Union. The FTC also issued a letter [13] in 2002 about the importance of disclosure of paid advertising on search engines, in response to a complaint from Commercial Alert, a consumer advocacy group with ties to Ralph Nader.
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