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I don;t see how Adwords can affect SEO – that was my worry too but I have investigated a bit, not that I actually do PPC. – but otherwise anyone (they’d have to be pretty dark and horrible) could do PPC for one of their competitors if this was the case to get their competitors thrown out the natural searches and that would be wrong and unfair and I’d imagine (not in our industry!) that some could resort to such tactics to get rid of the competition, presumably that is why Google view them as two seperate things