Some of the differences are…
1. Channels – This is obvious but needs to be mentioned, SEO is about search engines, primarily the big 3, Google, Yahoo, and Microsoft (GYM). SMO is about the “new” social media sources that have crept up, including blogs, bookmarking websites, media sharing websites etc…
2. Target Audience – Often times, the people checking their new messages on MySpace are looking for something different than they guy shopping for a new TV.
3. Goals – With SMO you might be looking to build community while with SEO you might be looking to sell something. Both SEO and SMO can also share the same goals.
4. Participation – With SMO you should actively participate in the same activities that your audience does, with SEO there is not as much participation.
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