Search Engine Marketing, or SEM, is a form of Internet Marketing that seeks to promote websites by increasing their visibility in the Search Engine results pages (SERPs). According to the Search Engine Marketing Professionals Organization, SEM methods include: Search Engine Optimization (or SEO), paid placement, and paid inclusion. Other sources, including the New York Times, define SEM as the practice of buying paid search listings with the goal of obtaining better free search listings.
As the number of sites on the Web increased in the mid-to-late 90s, search engines started appearing to help people find information quickly. Search engines developed business models to finance their services, such as pay per click programs offered by Open Text in 1996 and then Goto.com in 1998. Goto.com later changed its name to Overture in 2001, and was purchased by Yahoo! in 2003, and now offers paid search opportunities for advertisers through Yahoo! Search Marketing. Google also began to offer advertisements on search results pages in 2000 through the Google AdWords program. By 2007 pay-per-click programs proved to be primary money-makers for search engines.
Paid search advertising hasn't been without controversy, and issues around how many search engines present advertising on their pages of search result sets have been the target of a series of studies and reports by Consumer Reports WebWatch, from Consumers Union. The FTC also issued a letter in 2002 about the importance of disclosure of paid advertising on search engines, in response to a complaint from Commercial Alert, a consumer advocacy group with ties to Ralph Nader.
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