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SEO is the art of telling the search engines the subject of your website and then showing them that your site is not only the most relevant for a given keyword search but is also the most authoritative by working on obtaining links from other trusted websites.
PPC or Pay-Per-Click advertising involves bidding on the keywords your customers are using to find you in order to appear in the sponsored search results in Google, Yahoo, MSN or any other number of locations. Each time a visitor clicks on the link in one of your ads, you are charged an amount directly related to both your bid price and the bid prices of your competitors, but never above your maximum bid. Depending on your industry, the amount of competition and the expected return on investment, bid prices range from as low as £0.02, but are far higher for terms relating to industries such as finance or real estate.