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Search Engine Marketing is one of the hottest topics discussed by business owners worldwide and continues to be one of the most in-demand skills throughout the first quarter of 2010. (Check out the Online Talent Report for more.) However, the sheer number of acronyms and terms can leave your head spinning, especially if you’re new to the game.

If you’re currently working with an SEM expert for your business or are thinking about hiring one in the near future, check out the first of the multipart series of basic SEM terms to get you up to speed.

SEM: SEM stands for Search Engine Marketing, which is a form of online marketing that increases awareness for websites through Search Engine Results Pages (otherwise known as SERPs). SEM encapsulates a variety of different methods, like Search Engine Optimization, paid search ads, contextual advertising, and sponsored listings. Think of it like this: Just like Direct Marketing consists of a variety of marketing techniques like brochure mailings, telemarketing, door-to-door, and email marketing, SEM is an umbrella term that covers multiple types of, well, marketing on search engines.

SEO: SEO, otherwise known as Search Engine Optimization, is a form of Search Engine Marketing that involves a variety of techniques to move you and your business’ website up in search results on Google, Bing, and Yahoo! Why would you want to do this? If you’re on the first page of search results on Google, you’ll get far more free traffic than sitting on the 457th search result page.

Search engines consider a multitude of criteria when ranking websites in search results, and Search Engine Optimization is essentially the process of tweaking your website to best fit what Google is looking for. Think of it like this: Sure, you could have the slickest looking website out there to a human, but if Google’s robot-eyes can’t seem to read it, then it won’t think it’s very important. Consequently, anyone searching the web won’t be able to find it. Looking for some neat tools on Search Engine Optimization? Check out The Ultimate SEO Toolbox here.

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