You have no idea how many times I get asked this, and the different ways I have tried to explain what it is and why it is so important. In fact in some cases I've just given up, my mum for example;
she still thinks I work for Google.
I'm kind of worried people think it's just some buzz word, like
"Web 2.0", which by the way in my opinion is a word that is a bit like an unidentifiable decease, like colic or IBS, you can just imagine your doctor saying
"I'm sorry Sir, you have Web 2.0". Back to the point, SEO is NOT a buzz word, it's not something you possibly should do to be keeping with the Joneses. No, no, no sir! If you are serious about your online presence SEO isn't something you should consider it's something you should most definitely do.
Ok before you think I have totally lost my marbles and I get lost in a tangent, let me start with the basics,
defining SEO:SEO stands for Search Engine Optimisation and is where you a
dapt and moderate a website specifically so that it is indexed and ranks highly within a search engine's organic (free) listings. See below for where the organic listings are.

To optimise (modify) your website to get traffic through the search engines (mostly Google as they own over
80% of the UK search engine market share) you need to know a lot about how the search engines work and more importantly how the search engines algorithm (the mathematical equation) determines which web page is more important than another. Now I'm not going to go into details on these techniques in this post, as that's a totally different tangent. But bottom line is you need to hire a SEO Agency (or consultant) OR invest in substantial amount of time and effort learning this discipline yourself.
But WHY should you do SEO?In essence, by ranking highly in the SERPs (Search Engine Result Pages) for keywords that are relevant to your business, you will
get relevant and targeted traffic. Optimising your website for search engines is the simplest and most powerful way to reach an audience that is actively looking for your product or service. Now this is a really important part, yes they are
already LOOKING for your product or service by searching through the search engines for keywords that describes YOUR business. How's that for already doing half the sales job!
Some stats:
• 80% of Web users visit a search engine every day
• Search is responsible for 49% of online purchases
• In B2B, 93.2% of customers use the internet to research a purchase or service
Why you need to rank Highly!!Saying all this it's worth knowing that
just being listed in the search engines is NOT enough, if you are position 56 on Google for a chosen keyword you are not likely to get any traffic. Why? If you think about it, when you use the search engines yourself, how often do you go past the first page of Google when you have done a search? Exactly, you are probably more likely to change your search query/keyword before you venture to that horrible "next page" button. Who has the time, right? Here's some stats on exactly that:
• 93% of users won't go past the first page
• Less than 1% goes beyond 2nd page of a search
• The top 3 positions receive 80% of the clicks
Here's a diagram from a company called Enquiro about the click distribution of the organic search engine listings:

To put this in perspective, let's imagine you want to rank for the keyword
"digital agency" which has an approximate Google search volume of 6600 per month (trust me, I've checked my super dooper SEO tools). Now if you are listed #1 position in the Google organic results this means that you will receive approximately 3828 visitors a month for this keyword alone! YIHA! BUT if you are listed on the third page you might, just might get around 30 visits. Now that's a BIG difference.
Who thinks SEO is a buzz word now ;)