Paid search advertising has not been without controversy, and the issue of how search engines present advertising on their search result pages has been the target of a series of studies and reports by Consumer Reports WebWatch. The Federal Trade Commission (FTC) also issued a letter in 2002 about the importance of disclosure of paid advertising on search engines, in response to a complaint from Commercial Alert, a consumer advocacy group with ties to Ralph Nader.
Another ethical controversy associated with search marketing has been the issue of trademark infringement. The debate as to whether third parties should have the right to bid on their competitors' brand names has been underway for years. In 2009 Google changed their policy, which formerly prohibited these tactics, allowing 3rd parties to bid on branded terms as long as their landing page in fact provides information on the trademarked term. Though the policy has been changed this continues to be a source of heated debate.
On April 24, 2012 many started to see that Google has started to penalize companies that are buying links for the purpose of passing off the rank. The Google Update was called Penguin. SEM has, however, nothing to do with link buying and focuses on organic SEO and PPC management.
Read more about this topic: Search Engine Marketing
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