SEO or SEM?

While Search Engine Optimization (SEO) helps to improve visibility in natural or organic search results. It is more of a long term strategy to improve rankings in search results, and hence requires continual emphasis over the long haul. This, thus serves as a long term strategy for building brand credibility which delivers qualified visitors over the long-haul without relying on a media budget. An interesting statistics is that about 80% - 85% of the free traffic on the internet is referred from a search engine.
On the other hand, Search Engine Marketing or especially PPC advertising on the other hand, allows firms to present targeted ad messages with specific calls-to-action. Contextual PPC advertisements are viewed by prospects at the very moment they are looking for information, and in most cases, the advertisers only pay for clickthroughs (in some cases even leads/ sales). PPC campaigns are cost-effective, highly controllable, deliver results immediately, and hence work to get traffic/leads/ sales in the short term.

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