SEO and SEM involve different internet marketing strategies. SEO is optimizing a website for organic search engine rankings through techniques like keywords, links, titles and meta tags. It has no cost per click but also no guaranteed rankings. SEM involves paid search marketing through paid listings and placements. Paid listings guarantee inclusion through costs per click, while paid placements guarantee higher rankings through auction-based costs per click. Both SEO and SEM can be effective for driving traffic, but SEM allows for return on investment tracking through leads and conversions.