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SEO (search engine optimization) is the process of optimizing your site so that it ranks well within the search engines. Proper links, well organized site construction, fresh quality content, title tags, etc. If your site naturally shows up on the search engine results page (SERP), it is called organic search results.
SEM (search engine marketing), on the other hand, is *placing* your site on the SERP by paid advertisement--Adwords for Google, Yahoo!, and Microsoft Ad Center. It can be a PPC ad, banner ad, or text ad. Whichever type of ad, it only displays when someone types in the keyword you placed a bid on for your ad to appear.
GetMoneyFromGoogle.com (NOT an affiliate link) is the best $27 you'll ever spend on learning about SEM. Good luck!
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