As the Google Webmasters' Guide tells us:
SEO is an acronym for "search engine optimization" or "search engine optimizer."
Basically, SEO is the method or strategy used by webmasters to improve their website's ranking in Search Engines (SE) in order to increase traffic and sales. Basic things such as review of web content and structure, are a part of SEO.
It's in the early 1990's where website owners began to realize that having their sites highly visible in SERPs (Search Engine Results Page) brings them more traffic and sales.
People who began to notice this have created techniques to manipulate Search Engines. Spamming and hacking Search Engines' algorithm were the main idea at that time, though it was highly discouraged by Search Engine Owners.
Due to this, the banning and decreasing of website rankings began. The people who did the aforementioned unethical way to increase their rankings realized that by following Search Engine's guidelines, they can also come up with satisfactory results, all that they need is patience.
Search Engines were made to provide quality information to its users, that's why they fight back and bite hard those webmasters who practices SEO the wrong way.
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