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SEO vs SEM: What You Need to Know and How to Choose Which is Right for You

Whether you are new to real estate or a seasoned veteran, you have undoubtedly come across two common acronyms time and again: SEO and SEM. Both are common real estate marketing strategies employed by agents across the country, but many do not fully understand the differences between them or when to use one strategy versus the other.

This is meant to be a guide to help you understand each process better, along with the advantages and disadvantages of each, to help you better gauge which strategy to use based on your individual goals.

SEO (Search Engine Optimization)

What is SEO?

Search engine optimization is a marketing technique designed to organically drive more traffic to your website through boosting search engine rankings for targeted keywords. SEO typically combines an on-page optimization strategy with a backlink campaign for maximum success.

The basic premise behind search engine optimization is to convince search engine algorithms of the relevance of your website so that it is boosted in search engine results rankings. Remember, search engines want to show the most relevant search results first to enhance user experience and provide the best results for each query. By optimizing your real estate website for the search engines and getting targeted backlinks, you can trigger search engine algorithms’ ranking signals and boost your online rankings.

Why Use SEO?

It has been proven in study after study that the lion's share of internet searchers never make it past the first page of results. In fact, most studies show that more than 90% of all people conducting a search on Google and other search engines only ever click on first page results. If you are not showing up on the first page, you are missing out on a huge percentage of the digital market share. Using effective search engine optimization is the best way to show up where your clients are looking. Increasing your online visibility increases your chances of real estate lead generation.

Advantages of SEO

Free - when done yourself
Maximizes your exposure
Enhances your credibility with your market audience
With the right system, small tweaks can make a big difference
Long-term solution - your SEO efforts now compound and continue over time

Disadvantages of SEO

Can be time-intensive
Results take time - it can take months to see boosts in rankings and traffic
Unpredictable - it is difficult to estimate eventual page rank and/or traffic increase potential for targeted keywords

Tips for Effective SEO

Content, content, and more content! The largest driving factor in your search engine optimization strategy should be adding as much relevant content to your site as possible. Add descriptions of each neighborhood that you farm. Write content for each area landing page. Blog consistently on an integrated blogging system. The more relevant content you have on your site, and the more consistently it is added, shows the search engines that your site is a valuable resource.
Organize your content with relevant keywords that represent popular searches, but be sure not to keyword stuff! Search engines love carefully crafted content, not a laundry list of keywords with no purpose. In fact, keyword stuffing is a negative trigger for search engine algorithms and will work against your SEO strategy.
Optimize meta-tags, page titles, and meta-descriptions with targeted keywords. A tech-forward real estate website system should provide tools to easily edit these key SEO features that play a large role in your search engine rankings.
Include a backlink strategy in your SEO plan. Backlinks are links from other sites or sources back to your website. The more quality backlinks your site receives, the greater its credibility in the eyes of the search engines.
Interlink pages within your site for added SEO value.
Make sure your website is mobile responsive to reduce bounce rate.

SEM (Search Engine Marketing)

What is SEM?

Search engine marketing is a paid marketing approach to drive more traffic to your website using paid advertisements. Users have the ability to create ads, target keywords, and market to hyper-specific segments of the population in an effort to boost lead conversion within their targeted audience.

This approach is sometimes called PPC, or pay per click. Using this strategy, ad campaigns are set up and begin running, with the user only getting charged when ads are clicked on. The most common digital spaces to employ SEM is through search engines and social media platforms.

Why Use SEM?

The biggest reason to use search engine marketing is that results are fast! Once campaigns begin running, you are likely to begin generating leads within a few days, if not sooner. In a fast-paced market, this is one of the most effective ways to expand your visibility quickly and boost your potential for lead conversion.

Search engine marketing also allows you to update campaigns on the fly to experiment with new ideas and strategies until you find one that works best for your goals. Since results don’t take months to see, you have a wide range of flexibility with search engine marketing that you don’t see with other forms of marketing.

Advantages of SEM

Good short-term solution: see results quickly
Increase online visibility
Predictable results and ad spend capabilities
Great conversion potential - most paid ads appear near the top of search results
Flexible ad spend only costs money when someone clicks on your ad, generating a potential lead
Allows for adjustment quickly to tweak your strategy in real-time
Easy to calculate ROI
Target key demographics based on your individual market and business goals

Disadvantages of SEM

Results-driven only as long as you continue paying for ads
Can get very costly over time
Can be very time consuming to continually monitor analytics and make adjustments to your ad campaigns
Labor-intensive set up to conduct keyword research, marketing plan, and cost per click analysis

Tips for Effective SEM

Take time to conduct keyword research before you set up your ad campaign. This way you know what keywords are highly trafficked to make it worth your time and money.
Understand CPC (cost per click) before you go live - and plan accordingly. Set a budget and determine the average CPC of your targeted keywords. Some of the most searched for keywords are also the most expensive per click. Make sure you understand how many clicks are possible per month based on your budget and average cost per click of your chosen keywords.
Set up multiple ad campaigns with different verbiage, keywords, and demographic information and track the analytics throughout the month. This way you can analyze which strategies perform the best, and how to get the best return on investment.
Don’t forget strong calls to action in your ads.

Should You Use SEO or SEM?

When it comes down to it, the decision to focus your efforts on either SEO or SEM really depends on your goals. Looking to bolster an already strong lead pipeline? SEO. Are you trying to set yourself up for long-term success? SEO. Do you need to create a lead pipeline? SEM. Trying to get visibility for an active listing? SEM. The important thing is to understand the pros and cons of each and make your decision based on actionable data and a good comprehension of each strategy.

Some of the most successful real estate agents use a combination of SEO and SEM for the best results.

Using SEO and SEM in tandem provides maximum coverage for both short and long-term success. A great strategy is to use paid marketing to drive traffic to your site now while you are waiting to see results from your SEO strategy. Since effective SEO can take months to see a boost in traffic resulting in leads, also having a paid strategy that provides immediate results is a great way to reach your business goals.

However you move forward with a marketing plan, the first step is understanding your own individual goals - then finding the knowledge and support to ensure that you achieve them!