SEM is a broader term than SEO, and is used to encompass different options available to use a search engine’s technology, including paid ads. SEM is often used to describe acts associated with researching, submitting and positioning a website within search engines.  It includes things such as search engine optimization, paid listings and other search-engine related services and functions that will increase exposure and traffic to your Web site. 
Web search is one of the most powerful tools we have today. Just like you, people from all walks of life use Google to find solutions, learn new things and understand the world around. One of those new things may be determining whether SEO vs SEM is best for your business. Whether you’re an online business or a local business, chances are that people are actively looking for you.
Consider the age of your business. If you just opened your business and launched your website, it’s going to take time to develop your SEO and begin to appear organically in the search. While that doesn’t mean you shouldn’t put together an SEO strategy, it does mean that you could benefit from an SEM strategy until you build your SEO. SEM is an effective way to drive traffic while building organic SEO.
The key distinction is that SEM is a broader strategy which combines paid search and SEO tactics. So, if you set up a PPC advertisement, but don't take steps to optimize the ad or the website it links to, this is a standard example of paid search. However, if you optimize your site and your search content with solid keywords, then you put money behind it to boost it on targeted audience's search pages, then you're dabbling in SEM.
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