In some contexts, the term SEM is used exclusively to mean pay per click advertising,[2] particularly in the commercial advertising and marketing communities which have a vested interest in this narrow definition. Such usage excludes the wider search marketing community that is engaged in other forms of SEM such as search engine optimization and search retargeting.
Not every single ad will appear on every single search. This is because the ad auction takes a variety of factors into account when determining the placement of ads on the SERP, and because not every keyword has sufficient commercial intent to justify displaying ads next to results. However, the two main factors that Google evaluates as part of the ad auction process are your maximum bid and the Quality Score of your ads.
In December 2009, Google announced it would be using the web search history of all its users in order to populate search results.[32] On June 8, 2010 a new web indexing system called Google Caffeine was announced. Designed to allow users to find news results, forum posts and other content much sooner after publishing than before, Google caffeine was a change to the way Google updated its index in order to make things show up quicker on Google than before. According to Carrie Grimes, the software engineer who announced Caffeine for Google, "Caffeine provides 50 percent fresher results for web searches than our last index..."[33] Google Instant, real-time-search, was introduced in late 2010 in an attempt to make search results more timely and relevant. Historically site administrators have spent months or even years optimizing a website to increase search rankings. With the growth in popularity of social media sites and blogs the leading engines made changes to their algorithms to allow fresh content to rank quickly within the search results.[34]
Search engine marketing encompasses a range of activities all centred around making your website more visible when someone uses a search engine. If someone is looking for your business on the internet, it is vital your website appears prominently in the search engines’ results pages, or it will never deliver the value to your business that today’s economy demands.
The Google, Yahoo!, and Bing search engines insert advertising on their search results pages. The ads are designed to look similar to the search results, though different enough for readers to distinguish between ads and actual results. This is done with various differences in background, text, link colors, and/or placement on the page. However, the appearance of ads on all major search engines is so similar to genuine search results that a majority of search engine users cannot effectively distinguish between the two.[1]

Like I said at the beginning, building organic traffic is hard. Anything that promises a shortcut to an avalanche of traffic will more than likely lead to a penalty down the road. Embrace the daily grind of creating great content that helps users and provides a solution to what they’re looking for. In the end that will drive more organic traffic than any shortcut ever will.
Search Engine Marketing or SEM encompasses the steps taken to increase relevant traffic to your website, through higher rankings on search engines. Traditional SEM is made up of two processes: “organic” search engine optimization (SEO) and pay-per-click advertising (PPC) (or cost-per-click (CPC)). However, the field of SEM is a changing and expanding field thanks to constant new developments, such as:
In 2014, Cisco stated that video made 64% of all internet traffic. In 2015, Searchmetrics was releasing a white paper quoting that 55% of all keyword searches in the U.S. return at least one video blended into Google’s web search results and that 8 out 10 of those videos belonged to YouTube. And in 2016, Cisco was also sharing that online videos will account for more than 80% of all consumer internet traffic by 2020.
Solid analysis on this tough topic Rand. It will definitely be interested to see what in-serp features Google continues to add to keep you on their site as opposed to clicking through to a website. I think SEOs need to take more consideration into branding and content marketing tactics in order to supplement potential lost organic traffic as time goes on.

Organic is what people are looking for; the rest of these simply put things in front of people who may or may not be seeking what you offer. We know that approximately X number of people are looking for Y every day. So if we can get on front of those people, we have a much greater opportunity to create long-term relationships and increase our overall ROI.
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