SEO and paid ads reign supreme in the search engine marketing landscape. But which one is worth spending your money on to get the best ROI (return on investment) for your business?

Follow along with us as we do a deep dive into the ins and outs of each method, their pros and cons, and how you can use them to boost your business revenue.

Understanding SEO

SEO (search engine optimization) is the art of transforming web pages to be better received and ranked by search engines and their algorithms. This digital marketing strategy takes into account the relevance of a webpage or website to consumers, adding keywords to signpost content and creating pages that load seamlessly and give them the information that they need.

There are four main components to SEO:

  1. On-Page SEO: Optimizing webpages for relevance and quality content.
  2. Off-Page SEO: Generating backlinks and references from other sites.
  3. Technical SEO: Building fast-loading, easily accessible webpages for both users and search engine crawlers.
  4. Keyword research: Embedding relevant keywords for the content that can be searched for.

The better the page fits user requirements, the more relevant it is seen to be given the search query entered, and the higher the webpage will be displayed on the SERP (search engine results page). The higher the webpage, the more click-throughs and organic traffic will be generated.

The primary reason that you’ll want to use SEO for good ROI is because it offers a long-term value proposition. While paid advertising usually sees benefits across a finite amount of time, any SEO work you complete for your website will continually work in your favor. Although it can be more time- and labor-intensive than a PPC campaign, the effects will be consistent and last for longer, meaning that the ROI on SEO will be slow but steady.

Benefits of SEO:

  • Cost-effective in the long-run
  • Builds sustainable traffic
  • Generates organic traffic
  • Builds brand credibility
  • A long-term digital marketing option

Cons of SEO:

  • Labor and time-intensive
  • Requires periodical reviews and upkeep

Exploring Paid Advertising

Paid advertising, sometimes known as PPC (pay-per-click), involves setting up an advertising campaign in order to increase traffic to a target webpage or website over a period of time.

Paid ads can take many forms, including:

  • Display ads
  • Video ads
  • Search ads
  • Banner ads
  • Carousels

However, they all have one thing in common: you pay a fee every time someone clicks on the ad. To ensure that you get as many clicks as possible (and they get their fee), advertising platforms like Google Ads and Meta Ads will make sure that your campaign has premium placement on pages for relevant consumers. For example, on a search page, your campaign has high relevance for, your ad will likely be at the very top of the results, above the organic results from the SERP.

This gives your ads pride of place, increasing the visibility of your brand and driving traffic numbers up much higher over the period of time that the paid advertising campaign is active.

Benefits of PPC:

  • Instant results
  • Precise targeting of consumers
  • Measurable outcomes
  • Flexibility in campaign management

Cons of PPC:

  • Can be costly
  • A limited time frame of operation

PPC and SEO ROI Comparison

So, with each method having its pros and cons, which is best for your business and, more importantly, worth the money?

There is no clear-cut answer to this question, and so essentially, it boils down to what you are looking to achieve.

Are you looking for a large but short-term boost in traffic right away? Choose PPC ROI.

Do you want a steady influx of traffic that’s sustainable and don’t mind spending some time to get there? Choose SEO ROI.

For a further breakdown, check the table below:

SEO ROI Paid Ads ROI
Initial investment The cost stays lower unless large changes are to be made Can be a high initial payment, depending on the size and length of the campaign, as well as additional resources, such as images or videos
Ongoing expenses Expect to make continual payments for the upkeep of your SEO efforts Unless you wish to extend or start a new campaign, payment is usually covered in the initial setup
Conversion rates Lower but sustainable numbers usually give a gradual boost of traffic over time. High conversion from ad placement, but will drop off once complete
Time to see results Weeks to months Instant — within a few days

If you want to measure each of the methods’ effectiveness and their ROI for yourself, here are some key metrics that you can track:

  • Click-through rates: How many people click through to your target webpage either from organic searches (SEO) or paid ads.
  • Conversion value: Out of the visitors to your site from either method, how many end up becoming customers or having meaningful interactions with your brand? The average conversion rate for paid ads is 2.35 to 10% and for SEO, 2.5%.
  • Customer acquisition cost: Based on the conversion rate, how much did you spend per customer?

Using these details and carrying out some testing, you can easily find out what works for your business to make your digital marketing budget go further.

The Hybrid Approach

Of course, you could always embed a digital marketing strategy that encompasses the best of both worlds. In fact, a hybrid approach utilizing both SEO and PPC marketing is the most effective option.

They work together to maximize your online search visibility, consolidate and deliver a consistent brand experience and image, and give you more insights together to help inform future paid ad campaigns and content and keyword ideas for SEO. This robust approach helps you target users at all stages of the sales funnel with the appropriate content for them.

When to Use SEO vs PPC

We always recommend that SEO efforts should always be bubbling away in the background, but when is the best time to use each method?

PPC is used when you want results quickly. For example, think about when your busiest periods are, or key moments in the year for your business and industry. Setting up PPC campaigns for these times will help to maximize your traffic and boost sales and conversions.

Conversely, although you should never stop with SEO, you can plan for larger, more intensive updates during quieter times. As it can take a little while to provide results, you will likely see the fruits of your labors tie in with your paid ad efforts.

Essentially, it’s all about balancing your short and long term goals, and choosing your search engine marketing strategy accordingly.

Wrap-up

So, in order to get the best ROI for your business, both SEO and paid ads should be used effectively for the maximum impact.

Of course, there is no one-size-fits-all solution, so be sure to find a ratio of SEO to PPC that works for you.

To help build a comprehensive digital marketing strategy that will help your budget go further, schedule a conversation with BarkingFrogSEO. They’ll work with you to curate a plan that optimizes ROI, boosts traffic, and improves your brand’s online presence.