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Which is better for ROI – SEM or SEO?

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SEO explained

SEO is in essence the preparatory work done on a website in order to market it.  Once it as been optimized it is ready to be submitted to a search engine and be put into the public eye.  The initial expense involved can be substantial in terms of resources and time.  Both hinge of factors such as what market it is targeting, what exposure is intended in term of geographic locations and the scope of the website in terms of size, content and intricacy.

The initial work takes comparatively little time as opposed to ongoing optimization.  However if a site owner spends money in the beginning yet fails to follow through whatever has been spent on SEO may be wasted.

SEM explained

SEM stands for search engine marketing and it requires a budget just as any other marketing campaign does.  The better SEM is managed the better the ROI or return on investment.

SEO is considered a pre-requisite to SEM.  It is the beginning of SEM and involves all the SEO techniques needed to market a website.  It includes keyword phrases and keyword density, linking, content and website design.  Promoting the website falls under SEM and can be handled in many ways such as organic SEO or Pay per Click (PPC).  While SEO has a direct impact on organic marketing it is not needed for PPC.   However certain aspects of organic SEO have an impact on PPC such as the quality of a website and keywords.

ROI explained

ROI or Return on Investment is the amount of profit made once the initial costs have been deducted. It is the deciding factor for many in the choice of marketing direction they want to take their website.   For many there is a debate as to whether SEO or SEM provides a better ROI.

Taking just a landing page of a website as an example.  Visitors are able to ascertain in a matter of seconds whether or not they want to stay on a landing page or not.  If it has been optimized correctly and according to what a visitor is searching for visitors will continue.  SEM decides what a visitor will see on a landing page.  In SEO it is the spiders who decide what they will see.  Only human intervention can optimize a landing page.

ROI can only be achieved through conversions in both SEM and SEO.  While SEM requires the outlay of management costs plus the outlay of PPC costs, SEO incurs less outlay. However SEM is likely to provide a higher conversion rate than SEO.  This is because those finding landing pages through SEM are likely to find a better quality page than those arriving through SEO.

However SEO acts similar to real estate on a search engine.  The more you own the more exposure you get.  While SEO is a crucial part of internet marketing it is not to say that it will provide higher ROI.  SEO cannot address the control that SEM has on internet marketing yet this also does not guarantee that SEM will provide a higher ROI.

What will influence ROI is conversions and herein lays the difference between SEO and SEM.  Having greater levels of control can influence the amount of traffic that coverts.

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