In some contexts, the term SEM is used exclusively to mean pay per click advertising, particularly in the commercial advertising and marketing communities which have a vested interest in this narrow definition. Such usage excludes the wider search marketing community that is engaged in other forms of SEM such as search engine optimization and search retargeting.
Paid inclusion is a search engine marketing method in itself, but also a tool of search engine optimization, since experts and firms can test out different approaches to improving ranking and see the results often within a couple of days, instead of waiting weeks or months. Knowledge gained this way can be used to optimize other web pages, without paying the search engine company.
Let’s say, for example, that you run a construction business that helps with home repairs after natural disasters and you want to advertise that service. The official term for the service is “fire restoration,” but keyword research may indicate that customers in your area search instead for “fire repair” or “repair fire damage to house.” By not optimizing for these two keywords, you’ll lose out on a lot of traffic and potential customers, even if “fire restoration” is technically more correct.
On October 17, 2002, SearchKing filed suit in the United States District Court, Western District of Oklahoma, against the search engine Google. SearchKing's claim was that Google's tactics to prevent spamdexing constituted a tortious interference with contractual relations. On May 27, 2003, the court granted Google's motion to dismiss the complaint because SearchKing "failed to state a claim upon which relief may be granted."
Website owners recognized the value of a high ranking and visibility in search engine results, creating an opportunity for both white hat and black hat SEO practitioners. According to industry analyst Danny Sullivan, the phrase "search engine optimization" probably came into use in 1997. Sullivan credits Bruce Clay as one of the first people to popularize the term. On May 2, 2007, Jason Gambert attempted to trademark the term SEO by convincing the Trademark Office in Arizona that SEO is a "process" involving manipulation of keywords and not a "marketing service."