A good example is Facebook Custom Audiences. Within this Facebook supports email targeting, the ability to upload customer email addresses and then target those users on Facebook with tailored ads. This lets you micro-segment based on your existing customer database. One application is customer loyalty marketing, promoting offers to existing high value users via Facebook ads.
In 2007, Google announced a campaign against paid links that transfer PageRank.[29] On June 15, 2009, Google disclosed that they had taken measures to mitigate the effects of PageRank sculpting by use of the nofollow attribute on links. Matt Cutts, a well-known software engineer at Google, announced that Google Bot would no longer treat nofollowed links in the same way, to prevent SEO service providers from using nofollow for PageRank sculpting.[30] As a result of this change the usage of nofollow led to evaporation of PageRank. In order to avoid the above, SEO engineers developed alternative techniques that replace nofollowed tags with obfuscated Javascript and thus permit PageRank sculpting. Additionally several solutions have been suggested that include the usage of iframes, Flash and Javascript.[31]
With more and more content being created on Facebook every day, organic reach is steadily declining. That’s why you might want to consider using Facebook’s paid advertising options to promote and increase the reach of your posts. While organic posts only get shown to your own Facebook fans, paid ads allow you to target people who have not liked your page but have similar interests and/or demographics.
Pay Per Click (PPC) advertising is the most common form of paid SEM. PPC ads are the ones you see at the top of your Google search with the word “ad” written discreetly next to the link. Search engines such as Google sell keywords to the highest bidder. One of the nice things about this form of advertising is that – as the name suggests – you only pay for the ad when someone actually clicks on it.
Search engine marketing’s greatest strength is that it offers advertisers the opportunity to put their ads in front of motivated customers who are ready to buy at the precise moment they’re ready to make a purchase. No other advertising medium can do this, which is why search engine marketing is so effective and such an amazingly powerful way to grow your business.

Great analysis and tips, Rand. Your first tip was to focus on branded search... but when it comes to small-medium businesses, there's a limit on how much brand search-demand one can produce. Are you saying that google search will eventually become an engine made only for entities/businesses we already know of? Where does that leave the whole discovery process?
If you’ve seen ads appear at the top or right of search engines, then you already know what SEM is. When your ads display in these optimal, highly visible positions, your business can have an edge over your competition. Plus, most searchers only click on the first few results, which gives these premium ad spots a visual advantage to catch the attention of your future customers.

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Content is key. You’re trying to build an audience organically, and that means making content that is easy for people to find, that answers their questions, that they’re willing to share with friends, and that establishes your company as a source of information or entertainment that people want to return to again and again. Keywords are an integral part of any strategy, as they help to drive your content up the search rankings, so start by establishing keywords that are relevant to your business, and that you expect customers to search for.

However, while bidding $1,000 on every keyword and ranking #1 for every relevant search sounds nice in theory, most businesses have to play a balancing game between ranking higher and paying too much for clicks. After all, if it costs $17.56 to rank in position #1, but you can only afford to pay $5.00 per click, bidding $1,000 on a keyword to guarantee yourself the #1 position would be a great way to bid yourself out of business.


There are also a few more similarities. All of these marketing methods are measurable to an extent never seen in any other media. Every click can be measured – where and when it came – and followed through to the conversion, the sale and the lifetime customer value.  This feedback loop creates optimization opportunities that can create huge incremental improvements in your SEM campaigns.
Use social media. Build a presence on social media networks like LinkedIn, Twitter, Facebook, Google+ etc. All of these activities help to get your name out and website address out on the internet. Read about how we doubled our social media audience in a week. Add share buttons to your site to make it easy for people to share your content. And write content worthy of sharing.
You can also use organic to increase audience engagement with your content. For example, let’s say you’re a ticketing website for sporting events and you know that some of your followers are rugby fanatics. If you have a new blog interviewing Dylan Hartley (current England captain), then it makes sense to personally contact them (or at least key influencers) via their preferred social network and tell them about the blog, and ask them to comment/share. It’s personal and increases the chance they’ll see/read your content.
Organic-search traffic is the only search traffic you should be interested in. This is the traffic you get without any direct action on your part. It’s not something you can achieve with ease, though. The statistics say that 83 percent of organic clicks go to the first four results under most categories on search engines. So, to see your site attain that status, lay the foundations well in advance for the traffic you want.
The home page of your site is usually a good place to start. It typically holds a wide array of information about your product or service and will lead the website visitor to where they want to go. However, if you have other informative pages on your site that you think would be more helpful, you may want to choose one of those pages in addition to, or instead of, the home page.
For example, we have seen retailers who produce seasonal items, such as ornaments, based upon data that they are able to find through the Data Cube. This information tells them about the themes and ideas that are popular throughout the year and during their peak selling seasons, helping them to know which items will be the most successful and the optimal names to select.
There are many reasons explaining why advertisers choose the SEM strategy. First, creating a SEM account is easy and can build traffic quickly based on the degree of competition. The shopper who uses the search engine to find information tends to trust and focus on the links showed in the results pages. However, a large number of online sellers do not buy search engine optimization to obtain higher ranking lists of search results, but prefer paid links. A growing number of online publishers are allowing search engines such as Google to crawl content on their pages and place relevant ads on it.[16] From an online seller's point of view, this is an extension of the payment settlement and an additional incentive to invest in paid advertising projects. Therefore, it is virtually impossible for advertisers with limited budgets to maintain the highest rankings in the increasingly competitive search market.
Entertainment — The Internet is a plethora of things to do. Some are looking for videos. Others are looking for games. Many are entertained by new stories. Others like financial calculators. Others want to learn something new. Think about what kind of entertainment your target is looking for. Relate it back to your brand. That’s a great way to use SEM to connect.
Organic is different. Matching keywords to user intent means you may be present in many searches. The user may find you consistently, and once they get to your site, they are more likely to stay. Organic users are still your best long-term customers. In my experience, they have lower bounce rates and more pages visited, and they are more likely to return.