While the two do have related meanings, SEM is a much broader term and SEO is a subset or subcategory of the former.
Search Engine Marketing is basically anything that you would do to promote your website with the use of a search engine. You do this so that people will visit your site more and you can earn more profit. This can be done simultaneously with different methods such as online advertising, paid inclusions, and of course, SEO.
Search Engine Optimization, on the other hand, is the process of making your website friendlier to both search engines and users by developing relevant and quality content and making use of techniques that will send in more traffic to your site. This is a popular term because many webmasters prioritize this method over others.
Anyway, mistaking one for the other is a common error among most webmasters. But knowing the difference between the two can only better your comprehension of your line of work on the internet.
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