Search Engine Marketing -- The Term is interchangeably used with SEM or PPC also known as Pay per click or Google Adwords or Yahoo Search Marketing.
If I have to put it in Layman Language again it would be , any Medium in which advertiser is paying to the Publisher , In Current situation -- Google or Yahoo or MSN for its Ads to appear on Right hand side of the Search Column or on Content network. It is Termed as SEM or Search Engine Marketing.

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